CANADA Law and Practice Contributed by: John Pirie, Matthew Latella, Michael Nowina and Bryan Hsu, Baker McKenzie
7.3 Crypto-Assets Canada is lagging other countries in developing a com - prehensive legal framework governing crypto-assets, but guidance for crypto-assets has been issued by securities regulators across Canada, the Canadian Securities Administrators (which assist regulators in developing a harmonised approach across Canada) and the Investment Industry Regulatory Organiza - tion of Canada (IIROC), which oversees investment dealers, brokers and trading activity in Canada. This guidance has been intended to adopt existing Cana - dian securities laws to the unique issues that apply to crypto-asset trading platforms. Crypto-assets are treated as property for tax purpos - es in Canada and Canadian civil courts have adopted a similar approach. In several recent disputes including cases where fraud has been alleged, Canadian courts have issued freez - ing orders over crypto-assets, and Canadian courts have been receptive to treating crypto-assets like other assets that can be traced and seized by court orders. However, the decentralised and anonymous nature of crypto-assets makes tracing and recovering the fraudulently stolen crypto-assets difficult, particu - larly where the defendants are out of the jurisdiction and the passwords for access to the crypto-assets cannot be obtained.
ceedings except if it involves perjury or the impeach - ment of contradictory evidence. In a civil proceeding, a witness can be compelled by court order to answer incriminating questions, but that testimony cannot be used against them in other or future proceedings. In criminal proceeding, the right to silence ensures that defendants cannot be required to testify, and no adverse inference can be drawn from this choice. 6.2 Undermining the Privilege Over Communications Exempt From Discovery If a client seeks legal advice to facilitate or further a crime or fraud then solicitor client privilege can be lost. The exception is narrow, and it must be shown that the client intended an illegal purpose and the lawyer either shared or was deceived concerning that purpose. 7. Special Rules and Laws 7.1 Rules for Claiming Punitive or Exemplary Damages Punitive/exemplary damages are primarily governed by common law principles but there are specific statu - tory provisions that permit them in cases involving human trafficking, consumer protection or discrimina - tory business practices. Punitive/exemplary damages are often awarded in intentional tort cases such as fraud or breach of fiduciary duty. 7.2 Laws to Protect “Banking Secrecy” Banks are precluded from sharing customer informa - tion with third parties without consent under their duty of confidentiality, as well as under privacy legislation. Exceptions include disclosures compelled by court order, required by law or justified by a public duty, such as prevention of a crime or fraud.
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