A Practitioners Guide to Crypto: Global Risk, Regulation and Taxation

  • Lois Tullo, Executive In Residence, Global Risk Institute
  • Dr. Preetika Joshi, McGill University
  • Dr. Linda Thorne, Schulich School of Business, York University
  • Nicolas Epelbaum, Schulich School of Business, York University
Modern laptop with financial bitcoin cryptocurrency crypto graph data trade. Computer chart in notebook workplace detail.

About this Report

As cryptocurrency markets grow and evolve, authorities in different parts of the world are taking radically different approaches to classification, regulation, and taxation of Bitcoin, Ethereum and more than 12,500 other cryptocurrencies. This article looks at recent failures and volatility in the crypto space and reviews how leading countries are addressing the complex risks, regulation, and taxation of this rapidly changing market.

The paper introduces a global rating system that measures the stringency of countries’ cryptocurrency systems, rating acceptance/adoption, regulation, and taxation on a scale of zero to ten, with ten representing a total ban on crypto (China), and zero representing full adoption and tax-exempt status (El Salvador). Ratings are the then colour-coded and plotted on the Global Cryptocurrency Stringency Rating Map.

This global comparison has Canada as its focal point. Canada receives a rating of nine on the new rating scale, with relatively thorough regulation and reporting requirements, and stringent taxation that may continue to drive cryptocurrency innovation to more favourable tax destinations.