Crypto-assets are digital assets that exist on a cryptographically secured distributed ledger. There are many types of crypto-assets, the most common being cryptocurrencies such as Bitcoin. Transactions related to crypto-assets often have tax implications and must be reported.
Proper financial records of activities relating to the crypto-assets must be kept. This includes but not limit to Buy and disposal of the crypto-assets.
Crypto-asset exchange is an online platform that allows a user to buy, sell and trade crypto-assets for other crypto-assets or for traditional currencies. Exchanges may stop operations without notice. When an exchange stops operations, the account holder may be locked out of their account and as a result be unable to access their records. If you are unable to access your exchange information, it will be difficult to determine your income from crypto-assets activities, or to support amounts filed should the Canada Revenue Agency (CRA) conduct an audit. This is why you should keep a set of activities records by yourself.