Canada Adopts International Crypto Tax Reporting Standard
Canada is aimed at having the OECD standard for crypto asset tax reporting in place by 2027, as agreed with 46 countries.
James Bay, executive of STICPAY wallet, has warned that Bitcoin s current wave of institutional and celeb ity adoption might be a trend that might backfire in the short to medium term.
With A-listers endorsing the cryptocurrency industry, including threads of tweets and hype from Tesla Elon Musk, Bay has suggested that the “breakneck speed” of adoption that the industry is seeing could be unsustainable and might offset the balance in the industry in a negative way.
Bitcoin volume’s explosive increase
STICPAY has seen a massive nearly 50% increase in cryptocurrency deposits in the first three months of this year, while fiat deposits have been reported as fairly steady and not seeing any major difference. Bitcoin is the leading token for users of Bay’s wallet firm with Ethereum, Tether and Litecoin deposits trickling behind with deposit volumes paling in comparison. The firm has also seen an increase of 185% in users changing their fiat currencies to crypto through the wallet’s built-in converter with a 12% dip in users changing crypto to fiat. This highlights how the market has changed over the year – and it’s how rapid that shift has been that concerns Bay.
He noted:
“ Cryptocurrencies are increasingly being accepted as a trusted store of monetary value. But we have to say it’s Bitcoin that’s leading the change in payment habits and outlook that’s challenging fiat currencies. The switch to cryptocurrencies is moving at breakneck speed, but whether that trend continues remains to be seen.”
Influence possibly set to hurt the market?
While influential celebrities and high-profile individuals in the industry advocating the tokens might be positive in the short-term; offering bullish outlooks for the market, Bay suggests that this might not be the most sustainable for the industry. Tesla, for example, has shifted its stance having announced that it will be accepting Bitcoin – and then redacting this:
“Even today, high-profile Bitcoin evangelist Elon Musk announced Tesla will no longer be accepting the currency citing environmental concerns, all of which comes after March’s announcement that the business would take payment in Bitcoin.”