Bitcoin Asset Statement – BTC

Last updated: August 11th, 2025

OVERVIEW

No securities regulatory authority in Canada has expressed an opinion about Bitcoin or its classification as a security or derivative.

The Government of Canada, through the Canada Revenue Agency (CRA), treats Bitcoin as a commodity for tax purposes. This classification is for taxation and reporting purposes only and does not imply endorsement or guarantee of its value, legality, or future usability.

Bitcoin is distinct from other crypto assets (“cryptocurrencies”). While many crypto projects are issued and controlled by a central entity, operate on permissioned networks, or involve complex financial instruments, Bitcoin is a decentralized digital commodity with no issuer, no central governance, and a proven track record as the first and most widely adopted blockchain-based asset.

1Bitcoin Inc. (“1Bitcoin.ca,” “we,” “us”) operates as a non-custodial platform that exclusively facilitates the purchase and sale of Bitcoin. We do not hold client Bitcoin balances beyond the settlement process. Once Bitcoin is delivered to the wallet address you provide, you are solely responsible for its safekeeping.

NATURE OF BITCOIN

Bitcoin is a digital commodity, not a fiat currency or corporate-issued token. It was introduced in 2008 by an individual or group under the pseudonym “Satoshi Nakamoto” through the publication of the Bitcoin Whitepaper and launched in 2009 as open-source software.

The Bitcoin asset exists on, and is transferred through, the Bitcoin network — a decentralized system that allows peer-to-peer transfers of the digital asset without the need for intermediaries.

How Bitcoin differs from other crypto assets:

No Issuer or Central Control – Many crypto tokens are issued by a company or foundation; Bitcoin has no central authority.
Proven Network Security – The Bitcoin network is the largest and most secure proof-of-work blockchain in operation.
Singular Purpose – Bitcoin is designed to be a peer-to-peer, censorship-resistant transfer of value, not a platform for issuing multiple tokens or running complex smart contracts.
Track Record – Bitcoin is the first blockchain-based asset, with over a decade of continuous operation and adoption.

Key characteristics of Bitcoin include:

Operates without a central authority or issuing body.
Allows direct ownership and transfer between users anywhere in the world.
Secured and validated by a consensus process known as “Proof-of-Work” mining.
Maintained by a global, decentralized community of contributors rather than a single company or development team.
All transactions are recorded on a transparent, immutable public ledger called the blockchain.

DUE DILIGENCE

Before offering Bitcoin on our platform, 1Bitcoin.ca reviewed:

(i) Liquidity & Market Depth – Bitcoin’s global trading volume, market capitalization, and maturity as an asset.

(ii) Decentralization – Open-source governance, lack of centralized control, and distributed network security;

(iii) Technical Risks – Potential for software bugs, cyberattacks, forks, and other network threats;

(iv) Regulatory Classification – Statements and guidance from Canadian and international regulators regarding whether Bitcoin is a security or derivative; and

(v) Legal & Enforcement Risks – Any ongoing or potential actions affecting its legality or use.

While we concluded Bitcoin is unlikely to be considered a security or derivative under Canadian law, classification could change in the future.

KEY RISK OF OWNING BITCOIN

Bitcoin carries inherent risks, including but not limited to:

Price Volatility – Bitcoin’s value can change rapidly, including sudden drops.
Irreversible Transactions – Once broadcast to the Bitcoin network, transactions cannot be reversed or canceled. We cannot recover Bitcoin sent to an incorrect or compromised wallet address.
Private Key Risk – Loss or theft of your private keys means permanent loss of your Bitcoin.
Custody Risk – As a non-custodial platform, we do not store your Bitcoin. You are responsible for keeping it safe after delivery.
Liquidity Risk – Selling large amounts of Bitcoin at once may affect market price.
Technology Risks – Possible bugs, network attacks, or forks that could impact usability or value.
Regulatory Risk – New laws could limit the use, transfer, or legality of Bitcoin.
Market Manipulation Risk – Bitcoin markets may be susceptible to price manipulation.
Competition & Obsolescence – Future technologies could reduce Bitcoin’s relevance or value.

NO GUARANTEE OF VALUE

The value of Bitcoin is determined by supply and demand in the open market. 1Bitcoin.ca does not guarantee the future value, stability, or usability of Bitcoin, and you could lose the entire amount you invest.

ADDITIONAL INFORMATION & RESOURCES

We encourage all clients to conduct independent research before buying Bitcoin. Helpful resources include:

Bitcoin Whitepaper
1Bitcoin.ca Platform Risk Statement
Canadian Securities Administrators’ publications on crypto assets

CONTACT US

For questions about this statement, contact:

Compliance Department

1Bitcoin Inc.

Email: help@1bitcoin.ca

Buy Bitcoin in Canada