Crypto Asset Statement: Bitcoin
Last updated on May 27th, 2025

OVERVIEW

No securities regulatory authority in Canada has issued a formal opinion on the legal classification of Bitcoin as a security or derivative. 1Bitcoin Inc. ("1Bitcoin.ca") operates as a non-custodial platform that exclusively facilitates the purchase and sale of Bitcoin. Clients retain direct control of their Bitcoin at all times, and 1Bitcoin.ca does not hold or manage crypto assets on their behalf.

It is important to note that changes in law or regulatory interpretation may affect the use, transfer, exchange, or value of Bitcoin. Such changes may occur suddenly and without notice.

BACKGROUND

Bitcoin was introduced in 2008 by an anonymous entity known as Satoshi Nakamoto through the publication of the Bitcoin Whitepaper. It was launched in 2009 as open-source software and has since become the most recognized and widely adopted decentralized digital currency in the world.

Bitcoin operates independently of any central authority or intermediary. Transactions are validated through a peer-to-peer network and recorded on an immutable public ledger called the blockchain. Bitcoin issuance is governed by a process known as Proof-of-Work (PoW) mining, which rewards participants for validating transactions and securing the network.

Unlike other digital assets, Bitcoin does not have a centralized development team or foundation. It is maintained by a globally distributed community of contributors. For additional information on Bitcoin’s design, technology, and adoption, we encourage users to review the educational resources available on our website.

DUE DILIGENCE

Prior to launching 1Bitcoin.ca, a detailed internal assessment was conducted to determine whether Bitcoin may be classified as a security or derivative under Canadian law. Our conclusion—based on current legal and regulatory guidance—is that Bitcoin is not a security or derivative.

This assessment was based on:

  1. Market Maturity & Liquidity: Bitcoin is widely traded on global markets with deep liquidity and a large, decentralized user base.

  2. Decentralization: Bitcoin has no central issuer, controlling entity, or identifiable management team. It is maintained by open-source contributors.

  3. Design & Use Case: Bitcoin’s functionality is limited to value transfer and store of value. It does not promise profits, dividends, or investment returns.

  4. Legal Precedent & Regulatory Statements: Bitcoin has not been classified as a security or derivative by Canadian regulators. Guidance from the CSA and OSC has generally treated Bitcoin as a digital commodity.

  5. International Alignment: Bitcoin is treated as a non-security in many global jurisdictions, including the U.S. (per CFTC) and the U.K. (FCA classification).

We continue to monitor evolving Canadian and global regulatory frameworks for updates that may impact Bitcoin’s classification or availability.

ASSOCIATED RISKS

Like all digital assets, Bitcoin carries risk. These include, but are not limited to:

  • Volatility: Bitcoin prices can fluctuate significantly in short timeframes.

  • Regulatory Uncertainty: Changes in law may affect access, use, or value.

  • Security Risks: While 1Bitcoin.ca does not custody assets, clients must ensure the security of their own wallets.

  • Forks & Code Risks: Technical issues, network forks, or cryptographic vulnerabilities may affect Bitcoin’s future.

  • Technology Risk: Reliance on third-party infrastructure (e.g., internet, hardware wallets, mining networks) introduces operational risks.

For a comprehensive overview of risks, please refer to the 1Bitcoin.ca Platform Risk Statement.

DISCLAIMER

This document does not constitute legal, financial, or investment advice. Clients are strongly encouraged to conduct their own due diligence and consider their personal financial situation and risk tolerance before purchasing Bitcoin.

For additional questions or regulatory inquiries, please contact:
help@1bitcoin.ca

© Copyright 2024 1Bitcoin Inc. All rights reserved.