Gold + Crypto Gains & how the CRA tracks it

Can the CRA track crypto transactions?

Yes, the CRA can actively track crypto transactions.

Crypto transactions might seem anonymous, but they leave a digital trail. Transactions are recorded on a blockchain, which is a public digital ledger that records information across a network of computers.

In addition, regulated crypto exchanges in Canada comply with KYC (know your client) regulations, which means they have to verify your identity when you create your account.

Crypto trading has been on the CRA’s radar for a few years. When you sell your crypto in exchange for cash, goods, services, or another asset, these “dispositions” are considered taxable.

Crypto is considered a commodity in the eyes of the CRA, so if you’re an individual investor, any asset appreciation will be considered a capital gain. And if you trade crypto regularly to the point where it’s like a job, the CRA may view your gain as business income.

If the CRA wants to access information about trading activity, it can also request it from the crypto exchange. In at least one case, the CRA has successfully sought a court order to do so.

Some upcoming changes will likely make this process easier. Starting in 2027 (for the 2026 tax year), Canada is implementing the OECD’s Crypto Asset Reporting Framework. This will require crypto-asset service providers to give the CRA account holders’:

• Personal information
• Total value of crypto sales for the year
• Total value of other crypto-asset sales for the year
• Transfers of crypto for retail goods and services worth over $50,000

If someone’s crypto trading raises red flags for the CRA, the agency also has other tools at its disposal.

For example, if a platform receives virtual currency or an electronic funds transfer of more than $10,000, it’s required to report it to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Canada’s anti–money laundering and anti-terrorist financing supervisor, which can result in the CRA taking a deeper look.

The CRA also has information-sharing agreements with tax authorities in several countries.

Reporting crypto income to the CRA

You must report crypto gains (or losses) to the CRA each year on your tax return, or risk penalties and legal action. (Note that each type of cryptocurrency is an individual asset that has to be reported separately.)

Plus, here’s a benefit of reporting your crypto trading on your taxes: you can deduct half of your capital losses against taxable capital gains. And if crypto trading is your business, you can report losses on your tax return. You can also carry any net capital losses back three years or forward indefinitely.

Reporting crypto income in Quebec

Quebec has an additional tax return for crypto assets, form TP-21.4.39-V, for taxpayers who own, receive, or dispose of (sell, trade, transfer, donate, etc.) crypto assets; use crypto assets in a transaction; or receive rewards from crypto mining or staking.

Are sales of physical gold reported to the CRA?

Over the past two years, the price of gold has surged by more than 75%; as of July 2, 2026, it was about US$4,150 per ounce. This has attracted interest from investors looking for tangible assets like precious metals to protect against inflation.

Trading in precious metals can seem like an investment opportunity that falls outside of regular markets.

One benefit: when you buy physical gold, it’s likely to be GST/HST exempt if it’s “investment grade,” meaning at least 99.5% pure and in certain forms (bars and some coins). (Note that gold jewellery, which isn’t considered investment grade, is not exempt from sales tax.)

But selling gold has tax implications. The CRA considers the profits of a gold sale to be a capital gain, taxable the year you sell it. This includes some sales of gold jewellery, which the CRA categorizes as “listed personal property”—this is personal-use property that usually goes up in value. (Other examples include art, stamps, coins, and rare books.)

If you lose money selling gold, you can claim the loss on your tax return, potentially offsetting capital gains elsewhere.

Precious metals dealers, including those who sell gold in coin, bar, ingot, or other forms, have to collect buyer identification and keep records of purchases over $10,000 and any suspicious transactions and report these to FINTRAC. This allows the CRA to track large sales of gold.

Are online gambling and prediction markets taxable in Canada?

Your income from online gambling and prediction markets may be taxable. This depends on a few factors.

Taxes on gambling

If you’re placing occasional sports bets for fun or participating in a pool, any gains you receive are considered tax free, as gambling or lottery winnings. But if you earn income on that amount (by investing it, for example), you must report it on your tax return.

If your aim is to make a consistent profit from gambling or prediction markets, and you use statistical models or strategies, the CRA might consider this your profession. That would mean reporting your income and paying taxes on it.

Online gambling is not anonymous, as regulated platforms have to verify your identity to prevent fraud, money laundering, and underage betting. Similar to crypto and gold trading, platforms must report large transactions to FINTRAC.

Taxes on prediction markets

While making short-term binary bets through US platforms like Polymarket is not yet legal in Canada, regulations are evolving in this space. Some companies recently received approval to offer certain kinds of prediction trades..

The CRA hasn’t issued specific guidance on prediction market trading, but it treats other digital assets as commodities, with profits considered capital gains or business income and fully taxable in Canada.

Although prediction markets may seem anonymous, this situation is shifting. Some platforms are implementing KYC requirements and other verification steps to validate users’ identities.

Keep clear records

To ensure you’re accurately calculating gains and losses, and to make sure you can answer any questions from the CRA, keep detailed records of your transactions.

Tracking cost basis

Having detailed records will help you figure out your adjusted cost base (the average cost of acquisition, plus things like brokerage or transaction fees, for example), so you can calculate gains or losses and ensure you’re not paying more tax than you need to.

Recording gains and losses

When trading crypto, the CRA recommends investors record:

• Number of units and type of crypto-asset for each transaction
• Date and time of each transaction
• Value of the crypto-asset (in Canadian dollars) at the time of each transaction
• Description of each transaction and the other party to the transaction
• Addresses associated with each digital wallet, as well as the beginning and ending wallet balance for each crypto-asset

When it comes to buying physical gold and precious metals, keep dealer receipts and invoices showing:

• Date of purchase and price paid, as well as details like weight, quantity, and purity
• Selling price and date of disposition, as well as buyer information

Also hang on to any documents for costs like shipping charges and insurance.

If you sell more than $200 worth of gold, the dealer or broker will give you a T5008 information return and report the transaction to the CRA. It’s not that gold transactions below $200 are tax free—you just won’t get a T5008 slip.

You also won’t get a T5008 for selling gold jewellery, but the CRA considers jewellery “listed personal property,” a type of personal-use property. Learn more about reporting gains and losses on listed personal property.

Keeping a transaction history

The CRA requires taxpayers to keep records for six years from the end of the last tax year. With crypto trading and online betting, keep electronic records and export them regularly in case an exchange shuts down or you lose access to your account.

Don’t wait for the CRA to come calling

Trading crypto, buying and selling gold bars or coins, and making online bets seem like exciting ways to invest. Maybe your trades are small or just for fun, or you’re under the impression that investing this way is untraceable.

In reality, most financial activity leaves a digital footprint, and income from these activities could be taxable.

Don’t wait until the CRA scrutinizes your finances. Complying with the government’s requirements to report your income ensures you’re paying the right amount of tax each year—not down the road, saddled with compound interest and penalties—and you may be able to claim your losses.

If you have unreported income from previous years, consider applying to the CRA’s Voluntary Disclosure Program, which may grant you relief on interest and penalties.

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