Canadian crypto regulations are shifting fast, and compliance is getting more complicated. With CRA’s tax classifications and CSA’s potential stablecoin reclassifications, crypto accountants need insights they can trust. Join Metrics CPA’s team as they reveal the latest on these regulations and share practical solutions for staying compliant amid evolving tax policies.

How do you see stablecoin regulations impacting Canada’s crypto landscape?

Regan MacGrath: One of the main concerns right now is the CSA’s (Canadian Securities Administrators) interpretation of stablecoins. This reclassification could mean that stablecoins will be treated as securities in Canada, which would make it harder for companies to use them as payment instruments. Such a change could push businesses to consider moving to more crypto-friendly jurisdictions.

What are clients’ responses to the current regulatory uncertainty?

Rajin Allen: We’re definitely seeing some clients explore other jurisdictions due to Canada’s regulatory framework. But there are many businesses that still want to work within Canada and are looking to collaborate with regulators to advance the industry here. It’s a mix—some are concerned, and others are committed to working within the system to keep crypto moving forward in Canada.

How are the CRA’s new tax rules affecting DeFi and NFT reporting?

Regan MacGrath: The CRA’s tax classifications have tightened recently, especially for DeFi and NFTs, and it’s catching a lot of people off guard. For instance, NFT creators who earn over $30,000 in proceeds now have to register for GST. This is a major tax burden that most didn’t expect when they started with NFTs, and it’s a big change for those involved in DeFi as well.

Rajin Allen: Yes, a lot of NFT creators assumed that trading NFTs could just be a hobby. Now, they’re finding that the CRA views it differently. And with DeFi, the complexity is even greater. Clients often don’t realize that certain activities in DeFi, especially high-volume trading or liquidity farming, can shift them from capital gains to business income in the eyes of the CRA.

What are the biggest technical challenges in crypto accounting?

Regan MacGrath: The fast-changing nature of crypto derivatives makes it incredibly challenging to keep up. Reporting tools help, but they don’t fully solve the problem. Many transactions still require manual validation to ensure accuracy. In high-volume cases, or when working with institutional clients, the workload can be significant because we have to monitor the tools and also check each entry carefully.

What role does Metrics CPA play in shaping crypto regulations in Canada?

Regan MacGrath: Metrics CPA is deeply involved in policy discussions. We’re working with the Canadian Blockchain Consortium (CBC) to provide a credible voice on regulatory needs in the crypto industry. We’re also contributing to a digital assets white paper that the CBC is developing, aimed at educating government bodies like Finance Canada and the CRA. We’ve had some promising responses—government representatives have even asked us questions they want us to address in the paper. Alberta is a notable example of a jurisdiction showing real openness toward supporting crypto businesses.

Where do you see corporate crypto adoption heading in the near future?

Rajin Allen: Corporate interest is only growing, especially when it comes to holding crypto assets like BTC in treasury. Companies are not just looking at crypto as an investment—they’re considering accepting it as payment. We’re also seeing businesses explore how to price in BTC or ETH. This shift shows us that mainstream adoption is moving forward, and the role of crypto in the corporate world is likely to keep expanding.