Can you mine crypto in Quebec?

Can you mine crypto in Quebec?

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Can you mine crypto in Quebec?

On By Kevin Tassé / 0 comments

Can You Mine Crypto in Quebec? Yes — But There Are Strict Rules

Crypto mining in Quebec is legal, but Hydro-Québec has imposed strict regulations that every miner needs to understand. Quebec's cheap hydroelectric power has attracted Bitcoin miners from around the world, but the provincial government and utility company have put rules in place to manage electricity demand. Here's what you need to know about crypto mining in Quebec in 2025.

The Hydro-Québec 50 kWh Rule

Hydro-Québec monitors residential electricity consumption closely. If your household usage exceeds what's considered normal for your property, they may investigate. The general threshold that triggers attention is around 50 kWh per hour of sustained excess consumption — well within what even a single ASIC miner can produce.

If Hydro-Québec determines you are mining cryptocurrency, they can:

  • Switch you to commercial electricity rates — which are significantly higher than residential rates
  • Apply retroactive billing — charging you commercial rates for months of past usage
  • Require you to obtain a commercial electricity contract — with additional fees and requirements

These penalties can be financially devastating. Miners who were operating profitably at residential rates ($0.07–$0.10/kWh) suddenly face bills at $0.15–$0.20/kWh or more, with retroactive charges potentially reaching thousands of dollars.

Is Crypto Mining Legal in Quebec?

Yes, crypto mining is legal in Quebec and across Canada. There is no law prohibiting you from running ASIC miners. However, you must comply with electricity regulations, zoning laws, and tax obligations. The issue isn't legality — it's the electricity rules that make residential crypto mining risky in Quebec.

Residential vs Commercial Mining in Quebec

Factor Residential Mining Commercial Mining CaptainMining Hosting
Electricity Rate $0.07–$0.18/kWh (tiered) $0.05–$0.12/kWh $0.10/kWh flat
Hydro-Québec Risk High — rate switch + retroactive billing Low — proper contract None — we handle it
Noise Major issue (neighbors, bylaws) Managed on-site Zero for you
Permits Required May need zoning approval Yes — commercial zoning No — included
Scalability Very limited (1-2 miners max) Moderate Unlimited

The Safest Way to Mine Crypto in Quebec

For Quebec residents who want to mine Bitcoin or other cryptocurrencies, the safest and most profitable approach is to use professional crypto mining hosting rather than mining at home. CaptainMining offers hosting at a flat rate of $0.10 CAD/kWh — eliminating the risk of Hydro-Québec penalties, noise complaints from neighbors, and electrical infrastructure problems.

Quebec Tax Rules for Crypto Mining

In Quebec (and all of Canada), income from cryptocurrency mining is taxable. Revenue Quebec treats mining income as either business income or hobby income depending on factors like scale, frequency, and intent to profit. Key points:

  • Business income: If mining is conducted with profit intent, all revenue is taxable and expenses (electricity, hardware, hosting) are deductible
  • Capital gains: When you sell mined Bitcoin, any price appreciation since the time of mining is subject to capital gains tax
  • GST/QST: May apply depending on your mining operation's revenue

We recommend consulting a tax professional familiar with cryptocurrency for personalized advice. CaptainMining does not provide tax or financial advice.

Alternatives for Quebec Miners

If you live in Quebec but want to participate in cryptocurrency, here are your best options:

1. Professional Hosting with CaptainMining

Buy an ASIC miner and have it hosted at our facility. You avoid all Hydro-Québec risks while benefiting from low electricity rates. Learn about our hosting service.

2. Buy and Hold Bitcoin via Shakepay

If you prefer not to mine, you can buy Bitcoin directly through Shakepay — a Canadian platform that supports e-Transfer, Visa, and Apple Pay. Use referral code 8K3RGZD to get a bonus. You can also earn free BTC daily by shaking your phone.

3. Bitcoin ETFs in a TFSA

Canadian investors can hold Bitcoin ETFs in a TFSA for tax-free growth. Read our TFSA guide for more details.

4. Solo Mining with a Lottery Miner

A low-power solo miner like a Bitaxe uses minimal electricity and won't trigger Hydro-Québec alerts. Learn about solo/lottery mining.

Frequently Asked Questions

Can Hydro-Québec detect crypto mining?

Yes. Hydro-Québec monitors residential consumption patterns. Sustained high electricity usage (especially with consistent 24/7 load) can trigger an investigation. Smart meters make detection straightforward.

What happens if Hydro-Québec catches me mining?

You may be switched to a commercial electricity rate with retroactive billing for the period you were mining. This can result in thousands of dollars in unexpected charges.

Is it worth mining Bitcoin in Quebec at home?

The risk of Hydro-Québec penalties makes home mining in Quebec very risky. Professional hosting at $0.10/kWh eliminates this risk while keeping costs competitive.

How much electricity does a Bitcoin miner use?

An Antminer S21 uses about 3,550W continuously — roughly 2,556 kWh per month. That's equivalent to running 3-4 average Quebec households, making it easily detectable by Hydro-Québec.

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Disclaimer: This article is for informational purposes only. CaptainMining does not provide legal, tax, or financial advice. Cryptocurrency regulations may change. Consult with a legal or tax professional for advice specific to your situation.

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