By Jason Heath, CFP on March 5, 2026 Estimated reading time: 4 minutes

How is cryptocurrency taxed in Canada?

By Jason Heath, CFP on March 5, 2026 Estimated reading time: 4 minutes

Crypto profits aren’t always tax-free. Here’s how the CRA taxes cryptocurrency transactions, mining and staking, and overseas gains.

A friend at the gym was asking me if his crypto winnings from investments in Europe were taxable in Canada. It was a large once in a lifetime amount and was not his main source of income. He just tried for a few months and opt out afterwards. Lucky person.

This made me curious because what he did was very speculative, if not gambling, which is tax-free.

Lottery or gambling winnings are generally tax-free in Canada. I think given the fact your gym buddy referred to winnings from “investments,” Michel, it was likely more of an investment gamble that just happened to pay off. 

Gambling activities can be taxable in some instances. According to the Canada Revenue Agency (CRA): 

“This will be the case if the gambling activities constitute a source of income (that is, carrying on the business of gambling). Determining the commerciality of gambling can be challenging. Games of pure chance, like lotteries, lack the badges of trade to which the traditional tests of business activity can be........

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