Do Canadians pay taxes on Bitcoin?

The Canada Revenue Agency (CRA) has made it explicit that cryptocurrencies are taxable under Income Tax regulations.

BTCC, a leading cryptocurrency exchange, offers a range of services to cater to the needs of crypto investors. These services include spot trading, which allows users to buy and sell cryptocurrencies at current market prices, and futures trading, which enables investors to speculate on the future price of digital assets.

Cryptocurrency gains derived from the disposal of digital assets are subject to Income Tax. Specifically, taxpayers are required to pay Income Tax on half of any profits realized from such transactions.

In addition to gains from the disposal of cryptocurrencies, any additional income derived from crypto-related activities is also taxable. This includes income generated through staking, a process whereby cryptocurrency holders lock their assets to support the operations of a blockchain network and earn rewards in return.

Furthermore, individuals who receive payments in cryptocurrencies are also liable to pay Income Tax on the value of those payments at the time they are received.