Auditing Scrutiny by Canadian Authority on Crypto-Assets

As per a survey by the Bank of Canada, Canadians’ awareness of Bitcoin rose from 64% to 85%, but ownership doesn’t seem to be commensurate. Even then, Canadian Governmental Authorities seem to have been meticulous in their auditing systems.

The taxation of cryptocurrencies in the region has been mandatory, subsequently, an entrusted cryptocurrency unit was designated in 2017. Ever since then, consolidating data, conducting conscious audits and intelligence reports engrossed on crypto-related risks. While the CRA, in conjunction with federal and provincial governmental authorities tracks functions pertaining to crypto-business in Canada and generate tax incentives, external agencies have also been conducive in rendering their expertise in the concerned areas. Ernst & Young, very recently, came up with an accounting and auditing tool meant especially for accounting and preparing taxes on cryptocurrency holdings. EY introduced a new tool in the name of CAAT (Crypto-Asset Accounting and Tax) which enables both institutional and retail investors to compute and prepare taxes exclusively on cryptocurrency holdings.

According to the Forbes reports, cryptocurrency investors are under the scanner of the Canada Revenue Agency (CRA), which is recognized as the government’s tax collection body. They are reportedly auditing sources of the investment getting closer to the matter. The CRA seems to have interrogated investors with the wide ranges of auditing requirements pertaining to their crypto-related activities.

Canada has always been blockchain hub for innovations. We’ve already stated in our previous posts also, various reputed Canadian cryptocurrency exchanges, such as Coinsquare, Bitbuy and Kraken etc are also likely to undergo auditing process. 

This illustrates the lingering concerns and the urge for Canadian auditing practice.

“In order to protect the integrity of our risk assessment systems, we cannot comment on the specific information or criteria we use to select files for audit,” the CRA clarifies Forbes.

Currency Strength Index: FxWirePro's hourly BTC spot index is flashing 40 (which is mildly bullish), while the hourly USD spot index was at 72 levels (bullish) at 12:27 GMT. 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex