How does crypto tax work in Canada?

Inquiring minds may be wondering, "How does crypto tax work in Canada?" Well, the taxation of cryptocurrencies in Canada is a complex matter that varies depending on the nature of the transaction and the individual's tax status. For instance, when cryptocurrencies are bought and sold as investments, the difference between the purchase and sale price is subject to capital gains tax. However, if cryptocurrencies are used to purchase goods or services, they may be taxed as barter transactions or business income, depending on the context. It's also worth noting that income derived from crypto mining or staking may be taxed as business income. The bottom line is that it's crucial to understand the specific tax implications of your crypto activities to ensure compliance with Canadian tax laws.