Cryptocurrency in British Columbia: Regulatory Landscape and Legal Precedents(2025)
The cryptocurrency sector in British Columbia (BC) has undergone significant regulatory
and legal developments in recent years, particularly in the context of crypto mining and
business operations. This blog provides an overview of the current landscape, drawing
on recent legislative changes, government policy, and key court decisions.
The Regulatory Shift: BC’s Permanent Ban on New Crypto Mining Projects
In October 2025, the BC government enacted the Energy Statutes Amendment Act
(Bill 31), which permanently prohibits new cryptocurrency mining projects from
connecting to the provincial power grid. This move builds on a temporary
moratorium introduced in December 2022 and extended in 2024, reflecting the
province’s commitment to prioritizing clean energy and managing electricity demand.
The rationale behind this legislation is twofold:
Environmental Concerns: Crypto mining is energy-intensive, and BC aims to
preserve its clean hydroelectric resources for industries with broader economic
benefits.
Grid Management: The province seeks to avoid overburdening the electricity
grid, ensuring reliable supply for priority sectors such as mining (non-crypto),
LNG, and renewable energy projects (BC Government News Release, 2025).
Existing mining operations may continue but are not permitted to expand their grid
usage, making BC a less attractive jurisdiction for new crypto mining investments.
Legal Precedents: The Conifex Timber Litigation
The regulatory authority for these measures was tested in the courts in the Conifex
Timber Inc. v. British Columbia (Lieutenant Governor in Council) litigation. The BC
Supreme Court and the BC Court of Appeal upheld the province’s authority to direct the
BC Utilities Commission to pause or restrict service to new or pending crypto mining
operations.
Key legal findings include:
Legislative Authority: The Lieutenant Governor in Council (LGIC) has broad
powers under the Utilities Commission Act to issue directions to the BCUC,
provided such directions align with the statute’s purposes.
No Undue Discrimination: The courts found that crypto mining operations have
unique electricity consumption characteristics—high, constant demand—which
justifies differential treatment compared to other industrial customers.
Policy Justification: The pause and subsequent ban were deemed reasonable
responses to economic and grid management concerns.
These decisions provide a strong legal foundation for BC’s ongoing regulatory approach
to cryptocurrency mining.
Business Operations and Fraudulent Conveyance
Beyond mining, BC courts have also addressed business arrangements in the crypto
sector. In IE CA 3 Holdings Ltd. v. NYDIG ABL LLC, 2024 BCCA 244 , the court
considered whether certain inter-company transactions in the crypto industry constituted
fraudulent conveyances under the Fraudulent Conveyance Act. The court held that
where business models and risks are fully disclosed to sophisticated lenders, and there
is no intent to defeat creditors, such transactions will not be voided as fraudulent.
Taxation and Compliance
While the focus of recent regulatory action has been on mining, crypto holders and
businesses in BC must also navigate provincial tax obligations. Resources such
as CoinLedger’s 2025 tax guide provide up-to-date information on how BC’s tax
brackets apply to crypto income and capital gains.
Conclusion
British Columbia’s approach to cryptocurrency regulation in 2025 is characterized by a
strong emphasis on environmental stewardship, grid management, and legal clarity. The
permanent ban on new crypto mining projects, upheld by the courts, signals a clear
policy direction. Meanwhile, BC remains a jurisdiction where transparent business
practices and compliance with disclosure obligations are essential for crypto
enterprises.
For those operating or advising in the BC crypto space, staying informed about evolving
regulations and legal precedents is crucial. As the sector matures, further developments
in both policy and case law are likely to shape the future of cryptocurrency in the
province.