Commissioned Paper: Cryptocurrency: Challenges to Conventional

Securities law in Canada is comprised of the rules and regulations of thirteen different provincial and territorial securities regulatory authorities, who work together through the umbrella organization of the CSA to foster national policy formation, improve, and coordinate rule harmonization, and facilitate national transaction efficiency.56 Securities regulation looks to protect investors from u. [...] Factors that are used in the determination by the CSA include, among others, whether the platform that will utilize the utility token has been fully developed or is in a development phase; whether the token will trade on secondary exchanges; whether the token is immediately delivered to the purchaser; whether the purpose of the distribution is a capital raise to support the developers key business. [...] at 2-3 (CSA Staff Notice 21-327 notes that the notion of “immediate delivery” is a fact-specific, contextual determination having consideration of the intention of the parties, the “economic realities” and substance of the transaction, and would generally occur if “ownership, possession and control” of the particular cryptocurrency was transferred to a purchaser and the transferor retained no furt. [...] at 1 (“The overall goal of the approach outlined in this Notice is to ensure there is a balance between needing to be flexible in order to foster innovation in the Canadian capital markets and meeting our regulatory mandate of promoting investor protection and fair and efficient capital markets.”); see also at 11 (“IIROC recognizes the need to be flexible and foster innovation and has therefore es. [...] Taxation and Estate Planning The Canada Revenue Agency (CRA) has adopted the position that cryptocurrency is not legal tender, and should be treated like a commodity for the purposes of the Income Tax Act.152 In this regard, it is analogized to gold or silver which fluctuates in value based on market factors.153 Whether the acquisition of a crypto-asset is a taxable event depends on the circumstan.