Canadians who hold “crypto-assets”, including cryptocurrency, are required to report any income or capital gains resulting from transactions involving such assets. The Canada Revenue Agency recently issued a Tax Tip for such taxpayers, outlining the record keeping and reporting obligations which must be met.

The Tax Tip, which can be found on the CRA website at https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/crypto-asset-exchanges-records-obligations-responsibilities.html, notes that crypto-asset exchanges may stop operations without notice, leaving clients without access to transaction records. The CRA recommends that such information – including trades (buy, sell, and swap), transfers (deposits and withdrawals), staking rewards, yield earnings, wallet addresses, and any other transaction information – be downloaded regularly, so that users will have information needed for tax reporting purposes.

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.