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Accepting Cash For BTC In Canada - Legal Implications

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eshriek

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I've recently tried to start selling small amounts of Bitcoin for cash. This is primarily to learn about as many aspects of Bitcoin as I can. I'm trying to find information on the legal implications of selling Bitcoin in Canada. Searching has typically yielded information about MSBs. If you are interested, see the btcfoundation's report on bitcoin and the law

When I search for information related to the personal buying and selling of Bitcoin, I get results that are in the business context.

I am hopeful someone knows about the personal implications. In Canada, bitcoin is considered 'property'. Maybe I should be looking at property laws in general rather than bitcoin specifically? There has to be some kind of KYC laws for selling 'property' for cash.

Haven't found a satisfactory answer on bitcointalk

Basically, I don't want to make a few sales and later find out that the way I accepted payment (cash) was not legal and end up losing the cash.

Posted on October 13, 2014 at 9:25 AM
Last Edited: October 13, 2014 at 7:53 PM

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• djnocide

  

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  Last time i checked. you had to declare your Bitcoins only when you transfer them to cash. The revenue have to be put in the self-employed field.

  Might have changed.

  Posted on October 13, 2014 at 2:25 PM
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• Omnibus

  

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  Personally, I would be more worried about getting setup by an officer posing as a customer than I would of a retroactive ruling. I know that happened to two guys in Florida a while back but don't know about Canada's stance on bitcoin. I'm inclined to think they are viewing it in a better light based on Andres meeting with the officials there.

  Posted on October 13, 2014 at 7:23 PM
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• eshriek

  

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  @omnibus Personally, I would be more worried about getting setup by an officer posing as a customer than I would of a retroactive ruling. I know that happened to two guys in Florida a while back but don't know about Canada's stance on bitcoin. I'm inclined to think they are viewing it in a better light based on Andres meeting with the officials there.

  Yes, they were Canadians. It sounded like entrapment to me because the agent kept upping the ante. They ended up agreeing to sell $30000.00 in btc. The agent also talked about selling stolen credit cards/numbers.

  I guess I'm wondering where the cut off is. I don't expect to sell $30000.00 in one shot, not even one year. But, hypothetically, I could see someone offering a person with btc $1000.00 a few times over the course of a year. Based on the latest LTB podcast, it's still up in the air for btc, but it can't be for cash. I'll probably follow up with one of the exchanges to hear what they have to say, or a bank. Hoping someone here may have already gone through this.

  Posted on October 13, 2014 at 7:46 PM
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• eshriek

  

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  FINTRAC, the Canadian version of FINCEN, has some promising leads: http://www.fintrac-canafe.gc.ca/reporting-declaration/Info/rptLCTR-eng.asp

  There are a few pages there about what you need to report IF you are a reporting entity, which individuals are not according to the definition. They talk about large ($10 000.00) transactions in a 24-hour period. I can't believe that that is the limit. There has to be a legal problem with selling less than $10 000.00 in one go.

  Posted on October 13, 2014 at 8:04 PM
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• Invullx

  

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  I don't live in Canada, I live in Australia, so I can't answer your question sorry :(

  Posted on October 13, 2014 at 10:12 PM
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• sicocos

  

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  although attitudes canada unclear, but unlike most other countries that fear and immediately ban the use of bitcoin. canada may eventually accept bitcoin

  Posted on October 16, 2014 at 8:32 PM
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