Just wanna know what is the legal stand of Canada on Bitcoins..? because this incidents appears like RBC treats bitcoins as drugs, is it a problem with a particular bank..!
It's still quite a grey area, it's legal as far as I know but since we have an oligopoly of 6 banks here, they do whatever they want and that's a real problem.
Regarding the banks - I had the same issue. Cavirtex had an issue where RBC did not want to have bitcoin business and shut down CaVirtex's account (they now use DC Bank)
I mine Bitcoins and would sell them on localbitcoins for a premium via cash deposit into my bank. Bank shut me down, told me if I do this again they will close my account for good. I opened an account with every bank I could and did it till they made me stop. Now I sell on cavirtex and have to deal with the fees instead of making a premium.
Regarding Canada's stance on Bitcoins...
It is not considered legal tender [Suspicious link removed]j.com/canadarealtime/2014/01/16/canada-says-bitcoin-isnt-legal-tender/)
Currently FINTRAC has been very lenient, but I do not think it will last as do most people [Suspicious link removed]j.com/canadarealtime/2014/02/11/canada-regulators-look-at-ways-to-get-a-better-handle-on-bitcoin/)
Now it is clear that Bitcoins are taxable in Canada. However nothing specifically says if it falls under income or capital gains. I have been filing them under capital gains (thus only 50% of gains are taxable)
(
http://www.cra-arc.gc.ca/nwsrm/fctshts/2013/m11/fs131105-eng.html)
They do say "Digital currency can also be bought or sold like a commodity. Any resulting gains or losses could be taxable income or capital for the taxpayer. Paragraphs 9 to 32 of Interpretation Bulletin IT-479R, Transactions in Securities, provide information that can help in determining whether transactions are income or capital in nature." but to be honest even after reading it I do not see any clear-cut regulation of it having to be one or the other.