Is CRA auditing Canadians for cryptocurrency transactions?

Yes. CRA treats cryptocurrency as a commodity for income tax purposes, not as currency. Gains from selling, trading, or converting cryptocurrency are generally taxable — either as capital gains or as business income depending on the frequency and nature of your trading. CRA has been actively pursuing cryptocurrency compliance and has required exchanges to disclose Canadian user information.

What triggers CRA scrutiny includes large unreported gains, frequent trading activity that looks more like a business than passive investing, using cryptocurrency to pay for goods or services without reporting the transaction, and not reporting the receipt of cryptocurrency as income when it was received as payment for services.

If you hold or have held cryptocurrency, ensure you have records of every transaction: date, the value in Canadian dollars at the time of each trade or purchase, what you received and gave up, and whether the activity constitutes business income or capital gains. Losses may also be deductible, but only if properly documented and reported. If you have unreported cryptocurrency income from past years, the Voluntary Disclosures Program may be available before CRA contacts you.