Breaking News

Why Canada Becomes Country of Blockchain and Cryptographic Currency

Canada has become the world's leading cryptocurrency country with its innovation, low energy costs, high-speed Internet development and a good regulatory regime.

From the application of blockchain technology, Canada ranks third in the world after the United States and the United Kingdom. Regarding the application of Ethereum blockchain technology, it is unmatched in fields such as finance, government, law, health, education, transnational cryptocurrency, energy, and ICO.

Cornell University professor Emin Gün Sirer said:

Ethereum nodes are geographically distributed around the world, and bitcoin nodes are often located in data centers.
Canada's dominant position in blockchain innovation may be partly because Toronto is the hometown of Vitalik Buterin, V is the developer of Ethereum blockchain, and Ethereum blockchain is open source software platform 2.0. A general-purpose scripting language that creates a protocol for establishing a reliable, decentralized network, extending the blockchain capabilities of Nakamoto, and adding a smart contract to the decentralized peer-to-peer bitcoin payment method Above is further improved.

This feature of the Ethereum blockchain allows the storage and operation of computer programs on which developers can build and deploy decentralized applications and permanently record any of their operations. In 2015, the first Ethereum-supported network was put into use. Currently, the Euro currency is the second largest cryptocurrency in the world. Ethereum provided funding for the Ethereum Swiss Foundation and was used by developers to pay for transaction fees and services on the Ethereum network.

Neil Nick Johnson, chief software architect at the Ethereum Foundation, said:

We have built a bridge between human-readable and machine-readable addresses of encrypted addresses. Although some other platforms have advantages, they are small in scale, and the scale of the Ethereum development team has grown from the very beginning, which is very important. Because on this basis, the development of applications and other areas of innovation are also correspondingly increasing, resulting in a snowball effect.
The Ethereum Business Alliance (EEA) was established last year. Ron Resnick, executive director of the alliance, said: EEA is a connective organization between Ethereum blockchain and companies. More than 450 members from around the world, including 135 members from banks, passed the A community of more than 30,000 developers promotes deployment.

ConsenSys is a member firm of EEA, which has developed various Ethereum-based projects, including Quorum, as well as the EU blockchain observatories and forums, and trained Ethereum developers.

EEA is also a member of the Blockchain Research Institute (BRI), which is headquartered in Toronto. BRI currently has more than 70 research projects and works with the Canadian Information and Communications Technology Council (ICTC) to establish a nationwide blockchain ecosystem. System; tested a national cryptocurrency with Canadian banks.

Canada not only actively promotes the application of blockchain technology, but also has advantages in cryptocurrency mining. According to Hydro Quebec, Québec has a surplus of at least 100 TWh of energy in ten years and the lowest electricity price in North America. This has attracted a large number of cryptocurrency mining personnel, including miners from China. Compared to gold miners who work underground at 5,400 to 5,600 feet, the cryptocurrency miner's mining methods appear to be much easier.

Bitland has been mining in Canada since 2016. At that time, one US dollar can be exchanged for one ether. When the price of Ethereum rose by 63600%, that is, to 636 US dollars, Bit Continental announced that it had developed a mining system specifically for the exploitation of the Ethereum, because there was no strict restriction on the total supply of the Ether coins. And Bitland said it has begun to pay attention to Quebec’s cryptocurrency mining website.

Bit Continental's operation of a mine requires 29.05 TWh per year, which accounts for approximately 0.13% of the world's total electricity consumption.

The local Ethereum miners stated:

Quebec is one of the best mining sites in the world. It not only has low electricity costs, suitable temperatures, but also very fast speeds. There are many data centers in Montreal that can rent servers. Quebec’s electricity bill is half or two-thirds lower than Ontario’s.
However, Quebec Governor Philippe Couillard recently stated:

The cryptocurrency miners planning to mine in Quebec will not be able to obtain cheap electricity from government-controlled hydropower companies because hydropower companies do not have enough electricity to meet their needs.
Hydropower companies are waiting for further instructions from the government.

Excessive supervision may stifle innovation. As a result, Canada's regulation of cryptocurrencies, ICOs, and tokens is relatively liberal. It provides government incentives to start-up technology companies, with federal-level rewards, and provincial-level rewards.

Last year, ICOs based on the Ethereum blockchain raised $4 billion globally. Canadian securities managers stated that the Canadian Securities Act may be applicable to overseeing cryptocurrencies. On the other hand, the Ontario Securities Commission (OSC) gave regulatory adjustments to allow Ontario's first regulated ICO to implement existing exemptions from the Securities Act.

The British Columbia Securities Commission approved the first cryptocurrency investment fund registered in Canada, recognizing cryptocurrency investment as a new investment method. This move allows pension, investment, and venture capital funds to invest in cryptocurrencies and tokens, including the Ethereum Fund of Ontario's employee retirement system.

This year, the cryptocurrency market fluctuates dramatically. Canada’s first blockchain trading fund began trading on the Toronto Stock Exchange.

The Canadian Revenue Agency (CRA) began to tax cryptocurrencies in 2013. However, in order to promote technological and scientific innovation, federal and provincial governments provide various research and development (R&D) tax incentives. Laura Gheorghiu, a tax partner at Gowling WLG explained that CRA characterizes cryptocurrency as a commodity, so the exchange between cryptocurrencies becomes a barter transaction that generates fully taxable commercial income or capital gains (taxable 50%), It is determined by the actual situation and measured by the value of the assets exchanged with the Canadian dollar.

If the cryptocurrency is held as a capital asset (eg, investment), the gain is classified as capital gains and taxed as capital gains. If the cryptocurrency is located outside Canada or directly held by funds, taxpayers must comply with the foreign filing rules. If an employee receives a cryptocurrency as wages, or other employment-related payments, the employee’s income includes the cryptocurrency converted into Canadian dollars. The mining of cryptocurrencies is either taxed as a business, or taxed as a personal hobby.

Corporate income, wages, or capital gains are taxed at the tax rate applicable to the relevant taxpayer. Canada's federal/provincial combined income tax rate is between 26.5% and 30%, and individual income tax rates are between 44.5% and 58.75%. Different provincial tax rates apply. different.

Non-Canadian citizens doing business in Canada are taxed in accordance with the same rules as Canadian citizens. Rents or royalties paid in the form of cryptocurrencies to non-Canadian citizens are subject to a 25% withholding tax. This tax rate may decrease depending on the applicable tax treaty. Individual tax returns should be submitted by the end of April and corporate tax returns should be submitted within six months of the end of the company's fiscal year.