CoinSmart president says crypto taxes are a ‘little bit more favorable’ outside US

According to Jeremy Koven, Canadian crypto firms may have a better regulatory environment than ones in the United States, benefitting users in a number of ways.

Jeremy Koven, the president of Canada-based crypto exchange CoinSmart and president at WonderFi, pointed to areas of concern for crypto firms in the United States looking for regulatory clarity and favorable tax policy. 

Speaking to Cointelegraph at the Blockchain Futurist Conference in Toronto on Aug. 16, Koven said promoting crypto at casinos and for sports betting was “really a no-brainer” in Canada, where many users were interested in gaming. He also pointed to the U.S. for dividing crypto rules among the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission, raising concerns among firms looking for clear regulations.

“Canada […] has done a very good job with that,” said Koven on regulation. “Taxes can be sorted out. That’s country to country, of course. I know the U.S. takes that stance that every time you make a purchase, you are selling your crypto, but other countries are a little bit more favorable right now.”

CoinSmart announced it would merge with WonderFi and Coinsquare in April, creating one of the largest crypto trading platforms in Canada with more than 1.6 million users — there are roughly 38 million people in Canada. The merger followed Coinsquare acquiring CoinSmart in September 2022.

Related: Canadians have ‘weak incentives’ to use a CBDC: Bank of Canada

Crypto users in Canada have seen a number of developments come as the U.S. continues to struggle with regulatory clarity. While the SEC has never approved any spot Bitcoin (BTC) exchange-traded fund in the U.S., Purpose launched one in Canada in February 2021, prompting other firms to follow in its footsteps.

On Aug. 14, Coinbase announced it had expanded the services offered to Canadian users through a partnership with Peoples Trust Company. Other major exchanges like Binance, however, have pulled out of the country amid concerns by regulators.

Magazine: Your guide to crypto in Toronto: Crypto City