Introduction
The digital asset revolution has transformed from niche technology to mainstream financial instruments, yet the regulatory landscape continues to evolve at breakneck speed. At BLG, our award-winning team combines technical expertise with jurisdictional insight to help clients navigate this dynamic sector—whether you're launching Canada's first crypto-based investment fund or developing enterprise blockchain solutions.
Why Specialized Legal Counsel Matters for Digital Assets
The intersection of technology and law creates unique challenges:
- Multi-jurisdictional compliance: Differing regulations across provinces/countries
- Emerging case law: Courts still defining cryptocurrency's legal status
- Product innovation: From NFTs to CBDCs, staying ahead requires creative structuring
👉 Discover how our national team solves complex digital asset challenges
Our Digital Asset Practice: Pioneers Since 2017
BLG has been instrumental in shaping Canada's digital asset framework through landmark engagements:
Regulatory Firsts
- Advised Canada’s first IIROC-registered crypto asset dealer for institutional investors
- Structured the country’s inaugural cryptocurrency-dedicated investment fund manager
- Developed compliance frameworks for pioneering bitcoin futures offerings
Litigation Milestones
- Counsel in precedent-setting cases defining cryptocurrency under Canadian law
- Developed recovery strategies for seized digital assets
Market Innovations
- Guided blockchain companies through TSX listings and public financings
- Designed regulatory pathways for security token exchanges
Comprehensive Service Offerings
Core Practice Areas
| Service Group | Key Capabilities |
|---|---|
| Financial Services | MSB licensing, payments compliance |
| Investment Management | Digital asset fund creation (Band 1 ranked by Chambers) |
| Derivatives | Crypto derivatives product structuring |
| Capital Markets | IPO/RTO advisory for blockchain firms |
| Dispute Resolution | Class action defense, fraud recovery |
👉 Explore our full suite of digital asset legal services
Client-Centric Solutions
We assist diverse market participants including:
- Crypto exchanges & trading platforms
- DeFi protocols and blockchain developers
- Financial institutions integrating digital assets
- NFT creators and marketplaces
- CBDC architects and payment processors
Sample Engagements
- Designed institutional-grade custody solutions for crypto assets
- Obtained novel exemptive relief for hybrid MSB/crypto platforms
- Structured Canada's first crypto asset ETFs
- Developed AML programs for virtual asset service providers
Emerging Focus Areas
NFTs & Digital Ownership
- IP strategy for NFT collections
- Marketplace terms and conditions
- Chain of title due diligence
Central Bank Digital Currencies
- Regulatory framework development
- Cross-border payment system design
- Privacy and security compliance
Open Banking
- API standard implementation
- Consumer protection protocols
- Partner ecosystem structuring
FAQ: Digital Assets in Canada
Q: How are cryptocurrencies classified under Canadian law?
A: Courts increasingly recognize them as property, though specific treatment varies by context (securities, commodities, etc.).
Q: What licensing is required to operate a crypto exchange?
A: Typically MSB registration plus potential securities dealer requirements depending on asset types offered.
Q: Can traditional investment funds hold digital assets?
A: Yes, with proper compliance frameworks—we've obtained proficiency waivers for portfolio managers.
Q: How are NFTs treated for tax purposes?
A: As taxable property; specific GST/HST and income tax implications require structured planning.
Q: What AML obligations apply to crypto businesses?
A: FINTRAC reporting, KYC procedures, and ongoing monitoring akin to financial institutions.
Q: Are smart contracts legally binding?
A: Generally yes, but enforceability depends on proper drafting and dispute resolution mechanisms.
Why Choose BLG?
- Depth: Canada's largest investment management legal practice
- Innovation: Thought leadership through IIROC Crypto-Asset Working Group
- Diversity: Driven By Women initiative supporting female entrepreneurs
- ESG Focus: Advisory services aligned with sustainable blockchain development
Contact our digital asset team to discuss your legal needs in this rapidly evolving space.