What is Cryptocurrency?
Cryptocurrency is decentralized digital money that’s based on blockchain technology. A blockchain is an open, distributed ledger that records transactions in code. In practice, it’s a little like a check book that’s distributed across countlesscomputers around the world.
Transactions are recorded in “blocks” that are then linked together on a “chain” of previous cryptocurrency transactions. With a blockchain, everyone who uses a cryptocurrency has their own copy of this book to create a unified transaction record. Each new transaction as it happens is logged, and every copy of the blockchain is updated simultaneously with the new information, keeping all records identical and accurate.
To prevent fraud, each transaction is checked using a validation technique, such as proof of work or proof of stake.
Why Do I need this Service
Cryptocurrency is taxable in Canada as a commodity where it is seen as a capital gain such as a stock or property or business income if you are mining or lending cryptocurrencies.
Under the guidance produced by the CRA, taxable events occur upon the disposition of any cryptocurrency. Disposition is the CRA’s term for “giving, selling or transferring” something, which in this case is a crypto asset. In general, common crypto dispositions that would be considered as taxable events include:
• Paying for goods and services using cryptocurrency.
• Selling crypto assets
• Trading one cryptocurrency for another (including swaps, exchanges and peer-to-peer trades)
• Cashing out cryptocurrencies into fiat currency
• Gifting crypto assets to friends, family or work colleagues
Can CRA Track my Crypto Investments?
Yes, the Canada Revenue Agency can track your crypto investments. Trading platforms involved with crypto must be register with the CRA to operate in Canada and they must share customer information (KYC). FRINTRAC says any transaction over $10000 must send to Fintech records and there are allow to ask exchanges for any record of transactions over $1000.
Do you offer services for Crypto Mining?
Absolutely! We are here to help you track all your business expenses and mining revenue and advise you on different opportunities you may be missing. To accurately track your crypto transactions in a scalable way, you need a system deliberately built for decentralized finance as tax reporting requirements for crypto trading demand detailed tracking of gains and losses.
Whether you are mining coins for personal or for business case we cater to any size of crypto operation.