CRA crypto guidance

Canada Revenue Agency (CRA) crypto guidance refers to the CRA’s published information on how crypto-assets are treated under Canadian tax rules. It explains how crypto-assets are generally treated for tax purposes, what types of transactions can create tax consequences, and how gains or losses may be calculated and reported. CRA guidance also addresses recordkeeping concepts for crypto activity, including dispositions, the difference between business income and capital gains, and the use of fair market value in Canadian dollars when crypto is traded for another asset or used to pay for goods or services. 

A user generates a $1,000 profit trading ETH. CRA guidance says a disposition may occur when crypto is traded or exchanged for another crypto-asset. The user is responsible for calculating any gains or losses using a reasonable method to determine the fair market value in Canadian dollars at the time of the trade.