CRA treatment map · 26 DeFi actions · checked 2026-11-01

CRA treatment map for DeFi actions

Mitey the yeti seated on a rock, reading a ledger, with a tax receipt with a maple leaf — **Mitey says:** Where CRA is silent, I say so. Practitioner views are labelled as theirs, never as CRA’s.

CRA has addressed 6 of these 26 actions, partly addressed 7, and said nothing on 13 (as of 2026-11-01). For each one you’ll see what CRA says with the page date, how practitioners describe treating it (with their source), and the records to keep.

Action	CRA	Keep
Selling crypto for Canadian dollars	Addressed	Date and time, units, CAD proceeds, fees, and the average cost (ACB) before the sale.
Swapping one token for another (including stablecoin to stablecoin)	Addressed	Both tokens and units, CAD value at the moment of the swap, the price source, fees and the transaction hash.
Paying for goods or services with crypto	Addressed	Date, units spent, the CAD value of what you bought, the merchant.
Giving crypto as a gift or donation	Addressed	Date, units, CAD value at the time, recipient.
Moving crypto between your own wallets or accounts	Partly	Both addresses, date, units, network fee, transaction hash.
Paying gas (network) fees	Partly	Fee in tokens and CAD for each transaction, including failed transactions.
Staking through a registered Canadian platform	Addressed	Each reward: date credited, units, CAD value then (this becomes its cost).
Staking from your own wallet or by delegating to a validator	Silent	Each reward with date, units and CAD value; validator; lock-up and unbonding dates.
Liquid staking (receiving a liquid staking token)	Silent	Units in and out, CAD values at each step, how the token pays rewards (balance growth or price growth).
Losing staked tokens to slashing	Silent	Date, units slashed, their ACB and CAD value, the validator and any reimbursement received. No Canadian practitioner source we found addresses the tax treatment; ask a professional.
Mining rewards	Addressed	Rewards with CAD value, hardware receipts, power and pool fees.
Receiving an airdrop	Silent	Date received, units, CAD value on receipt (even if you treat it as nil cost), what you did to qualify.
DAO or governance-token rewards	Silent	Date, units, CAD value, what the reward was for.
Depositing to a lending protocol (receiving a receipt token)	Partly	Deposit and withdrawal dates, units, receipt tokens and their contract, CAD values, interest earned.
Earning interest from a lending protocol	Silent	Balance of receipt tokens over time, CAD values at deposit, each claim and withdrawal.
Borrowing against crypto collateral	Silent	Loan dates, collateral deposited, amounts borrowed and repaid, interest paid (in tokens and CAD).
Being liquidated on a loan	Silent	Liquidation transaction, collateral units seized, debt repaid, penalty, CAD values at that moment.
Adding liquidity to a pool (receiving LP tokens)	Partly	Tokens and units deposited, LP tokens received, CAD values at the moment, pool and contract address.
Earning trading fees as a liquidity provider	Silent	Fees collected (units and CAD), LP token value at entry and exit.
Removing liquidity (redeeming LP tokens)	Partly	LP tokens redeemed, tokens and units received, CAD values at that moment.
Liquidity-mining or yield-farming reward tokens	Partly	Each reward claim: date, units, CAD value.
Wrapping a token (for example ETH to wrapped ETH)	Silent	Both sides of the wrap, units, CAD values, fees, transaction hash.
Bridging a token to another network	Silent	Source and destination networks, token contracts on each side, units, CAD values, fees, both transaction hashes.
Minting, buying or selling an NFT	Partly	Mint costs including gas, purchase and sale prices in CAD, royalties received.
Losing crypto to a hack or scam	Silent	Police and Canadian Anti-Fraud Centre report numbers, transaction hashes, ACB of what was lost, all messages.
Receiving new coins from a hard fork	Silent	Fork date, units received, CAD value on that date.

Buying, selling, spending

Selling crypto for Canadian dollars CRA addressed

What CRA says: Selling a crypto-asset is a disposition. The gain or loss is either a capital gain or loss (one-half taxable) or business income, decided case by case. (CRA, page date 2025-12-02)

Records to keep: Date and time, units, CAD proceeds, fees, and the average cost (ACB) before the sale.

Example (hypothetical)

Example: you bought 1 unit for $2,000 (ACB $2,000) and sell it for $3,000 with a $20 fee. Capital gain = $3,000 − $20 − $2,000 = $980; taxable half = $490 if it is capital.

More: What counts as a crypto disposition in Canada · Calculate: ACB calculator (DeFiCalculator.ca)

Swapping one token for another (including stablecoin to stablecoin) CRA addressed

What CRA says: Trading or exchanging one crypto-asset for another is a disposition, valued in Canadian dollars at the time of the trade. The token you receive starts with a cost equal to that value. (CRA, page date 2025-12-02)

How practitioners describe it (their views, not CRA’s):

Treated as a disposition at fair market value; some firms note this includes swaps between two stablecoins. (TokenTax, 2026-09-14)

Records to keep: Both tokens and units, CAD value at the moment of the swap, the price source, fees and the transaction hash.

Example (hypothetical)

Example: you swap 1 ETH (ACB $2,500) for 3,200 USDC worth $4,400 CAD at that moment. Gain = $4,400 − $2,500 = $1,900 (less fees); the USDC's ACB is $4,400.

More: What counts as a crypto disposition in Canada

Paying for goods or services with crypto CRA addressed

What CRA says: Using a crypto-asset to pay for goods or services (barter) is a disposition, valued at the fair market value of what you receive. (CRA, page date 2025-11-10)

Records to keep: Date, units spent, the CAD value of what you bought, the merchant.

More: What counts as a crypto disposition in Canada

Giving crypto as a gift or donation CRA addressed

What CRA says: Gifting or donating a crypto-asset is listed as a disposition. (CRA, page date 2025-11-10)

Records to keep: Date, units, CAD value at the time, recipient.

More: What counts as a crypto disposition in Canada

Moving assets

Moving crypto between your own wallets or accounts CRA partly addressed

What CRA says: Not among the dispositions CRA lists. CRA asks you to keep the addresses of every wallet you use and your yearly balances. (CRA, page date 2025-11-10)

How practitioners describe it (their views, not CRA’s):

A same-owner transfer is not a disposition by itself; the network fee may be treated as a small disposition of the fee token. (Count On Sheep, 2026-07-25)

Records to keep: Both addresses, date, units, network fee, transaction hash.

More: Crypto record keeping for Canadian taxes

Paying gas (network) fees CRA partly addressed

What CRA says: CRA says ACB usually includes acquisition expenses and asks you to keep fee records. It has said nothing specific about gas paid in a crypto-asset. (CRA, page date 2025-12-02)

How practitioners describe it (their views, not CRA’s):

Gas paid in ETH is itself a disposal of that ETH; the fee is added to cost or deducted from proceeds. (TokenTax, 2026-09-14)
Added to the ACB or deducted as an expense, depending on whether you hold on capital or business account. (Rotfleisch & Samulovitch (Mondaq), 2026-06-03)

Records to keep: Fee in tokens and CAD for each transaction, including failed transactions.

Wrapping a token (for example ETH to wrapped ETH) CRA silent

What CRA says: No CRA page addresses this action as of 2026-11-01.

How practitioners describe it (their views, not CRA’s):

A disposition in both directions. (TokenTax, 2026-09-14)
Could be a disposal, usually with no gain because values match. (Koinly, 2026-03-24)
Fact-specific: may or may not be a disposition. (Count On Sheep, 2026-07-25)

Records to keep: Both sides of the wrap, units, CAD values, fees, transaction hash.

More: DeFi transactions and Canadian tax: the open questions

Bridging a token to another network CRA silent

What CRA says: No CRA page addresses this action as of 2026-11-01.

How practitioners describe it (their views, not CRA’s):

A disposition when the token changes (for example a bridged version with a different contract); a same-token self-transfer is not. (TokenTax, 2026-09-14)
May trigger dispositions. (Rotfleisch & Samulovitch, 2026-06-03)

Records to keep: Source and destination networks, token contracts on each side, units, CAD values, fees, both transaction hashes.

More: Blockchain bridges explained: how assets move between networks

Earning

Staking through a registered Canadian platform CRA addressed

What CRA says: Published: rewards from staking on a centralized platform are generally income when credited (2025-11-10). An internal CRA interpretation (2025-01-17, non-binding) adds that depositing or staking with a platform compliant with CSA requirements is not a disposition, rewards are generally section 9 income when credited or as they accrue, and business vs property income depends on your level of activity. (CRA, page date 2025-11-10)

How practitioners describe it (their views, not CRA’s):

Calls the section 9 conclusion in the 2025 interpretation hasty and notes a taxpayer may file on their own reading, since interpretations are not binding. (David Rotfleisch (Legal 500), 2025-03-07)

Records to keep: Each reward: date credited, units, CAD value then (this becomes its cost).

Example (hypothetical)

Example: 0.05 ETH credited when ETH is $4,000 = $200 of income; those 0.05 ETH carry a $200 cost when you later dispose of them.

More: Staking, mining and crypto rewards: what CRA has and hasn’t said · Calculate: Staking income calculator (DeFiCalculator.ca)

Staking from your own wallet or by delegating to a validator CRA silent

What CRA says: No CRA page addresses this action as of 2026-11-01.

How practitioners describe it (their views, not CRA’s):

Rewards are income at fair market value when received or accessible; delegating is not a disposition if you keep beneficial ownership. (Rotfleisch & Samulovitch (Mondaq), 2026-06-03)
Rewards are income when received. (Block3 Finance, 2025-02-28)

Records to keep: Each reward with date, units and CAD value; validator; lock-up and unbonding dates.

More: Staking, mining and crypto rewards: what CRA has and hasn’t said

Liquid staking (receiving a liquid staking token) CRA silent

What CRA says: No CRA page addresses this action as of 2026-11-01.

How practitioners describe it (their views, not CRA’s):

May involve additional taxable swaps when you exchange into and out of the liquid staking token. (Rotfleisch & Samulovitch (Mondaq), 2026-06-03)
Raises both a token-exchange question on entry and a reward-timing question afterwards; treatment depends on the token's design. (Count On Sheep, 2026-07-25)

Records to keep: Units in and out, CAD values at each step, how the token pays rewards (balance growth or price growth).

More: Staking explained: proof of stake, validators and your options

Losing staked tokens to slashing CRA silent

What CRA says: No CRA page addresses this action as of 2026-11-01.

Records to keep: Date, units slashed, their ACB and CAD value, the validator and any reimbursement received. No Canadian practitioner source we found addresses the tax treatment; ask a professional.

Mining rewards CRA addressed

What CRA says: Mining is in most cases carrying on a business; rewards are business income when earned. Mining is generally not a commercial activity for GST/HST. (CRA, page date 2025-11-10)

Records to keep: Rewards with CAD value, hardware receipts, power and pool fees.

More: Staking, mining and crypto rewards: what CRA has and hasn’t said

Receiving an airdrop CRA silent

What CRA says: No CRA page addresses this action as of 2026-11-01.

How practitioners describe it (their views, not CRA’s):

An unsolicited airdrop is usually not income on receipt (nil cost, taxed when sold); airdrops earned by tasks or systematic farming are likely business income. (David Rotfleisch (Legal 500), 2026-08-20)
Income at fair market value when it becomes controllable. (Rotfleisch & Samulovitch (Mondaq), 2026-06-03)
Generally income at fair market value on receipt. (Insight Accounting CPA, 2026-08-18)

Records to keep: Date received, units, CAD value on receipt (even if you treat it as nil cost), what you did to qualify.

More: DeFi transactions and Canadian tax: the open questions

DAO or governance-token rewards CRA silent

What CRA says: No CRA page addresses this action as of 2026-11-01.

How practitioners describe it (their views, not CRA’s):

DAO pay for work is income; governance tokens received as rewards are income when received and controllable, and a later sale is a disposition. (Rotfleisch & Samulovitch, 2026-06-03)

Records to keep: Date, units, CAD value, what the reward was for.

DeFi lending and liquidity

Depositing to a lending protocol (receiving a receipt token) CRA partly addressed

What CRA says: Not in CRA's published pages. An internal CRA interpretation (2024-03-20, non-binding) found that depositing tokens to a DeFi liquidity aggregator for 1:1 receipt tokens was a disposition. A 2025 interpretation found that depositing with a CSA-compliant custodial platform was not, because beneficial ownership stayed with the user. The two point in different directions on different facts. (CRA, page date 2024-03-20)

How practitioners describe it (their views, not CRA’s):

Supplying to a lending protocol is a disposition (described as the conservative view). (TokenTax, 2026-09-14)
May be a taxable exchange in some interpretations. (Rotfleisch & Samulovitch, 2026-06-03)

Records to keep: Deposit and withdrawal dates, units, receipt tokens and their contract, CAD values, interest earned.

Example (hypothetical)

If treated as a disposition: deposit 1 ETH (ACB $2,500) worth $4,000 → $1,500 gain now; receipt token cost $4,000. If not: no gain until you withdraw and sell. Pick one approach with a professional and apply it consistently.

More: DeFi transactions and Canadian tax: the open questions

Earning interest from a lending protocol CRA silent

What CRA says: No CRA page addresses this action as of 2026-11-01.

How practitioners describe it (their views, not CRA’s):

Income when accrued or received. (Rotfleisch & Samulovitch, 2026-06-03)
Growth in a value-accruing receipt token is a capital gain when redeemed; separate reward tokens are income. (Koinly, 2026-03-24)

Records to keep: Balance of receipt tokens over time, CAD values at deposit, each claim and withdrawal.

More: DeFi transactions and Canadian tax: the open questions

Borrowing against crypto collateral CRA silent

What CRA says: No CRA page addresses this action as of 2026-11-01.

How practitioners describe it (their views, not CRA’s):

Borrowing is generally not taxable. (Block3 Finance, 2025-02-28)
Loan proceeds are not income; posting collateral may be a disposition; spending borrowed tokens is a disposal. (TokenTax, 2026-09-14)

Records to keep: Loan dates, collateral deposited, amounts borrowed and repaid, interest paid (in tokens and CAD).

More: DeFi lending protocols: collateral, health factor and liquidation explained

Being liquidated on a loan CRA silent

What CRA says: No CRA page addresses this action as of 2026-11-01.

How practitioners describe it (their views, not CRA’s):

A taxable disposition of the collateral at fair market value. (Rotfleisch & Samulovitch, 2026-06-03)

Records to keep: Liquidation transaction, collateral units seized, debt repaid, penalty, CAD values at that moment.

More: Liquidation risk: how DeFi loans get closed for you · Calculate: Borrow health calculator (DeFiCalculator.ca)

Adding liquidity to a pool (receiving LP tokens) CRA partly addressed

What CRA says: Not in CRA's published pages. An internal CRA interpretation (2024-03-20, non-binding, on limited facts) concluded that depositing tokens into a liquidity pool for receipt tokens was a disposition, or a barter transaction producing income if held in a business. (CRA, page date 2024-03-20)

How practitioners describe it (their views, not CRA’s):

Argues the CRA conclusion is doubtful: there is no counterparty and the LP token is minted to the depositor. (Canadian Tax Focus (Davies), 2024-11)
Often a disposition. (Rotfleisch & Samulovitch, 2026-06-03)
A disposition; the LP token's cost is its CAD value when received. (TokenTax, 2026-09-14)

Records to keep: Tokens and units deposited, LP tokens received, CAD values at the moment, pool and contract address.

Example (hypothetical)

If treated as a disposition: deposit tokens with a $3,000 ACB worth $5,000 → $2,000 gain; LP tokens cost $5,000. If not: carry the $3,000 cost into the position until you exit.

More: DeFi transactions and Canadian tax: the open questions

Earning trading fees as a liquidity provider CRA silent

What CRA says: No CRA page addresses this action as of 2026-11-01.

How practitioners describe it (their views, not CRA’s):

Fees built into the LP token's value are realised on exit; fees collected separately are income when collected. (TokenTax, 2026-09-14)
Income at fair market value on receipt. (Rotfleisch & Samulovitch, 2026-06-03)

Records to keep: Fees collected (units and CAD), LP token value at entry and exit.

More: DeFi transactions and Canadian tax: the open questions

Removing liquidity (redeeming LP tokens) CRA partly addressed

What CRA says: Not in CRA's published pages. The 2024-03-20 internal interpretation (non-binding) treated redeeming receipt tokens for the underlying tokens as a disposition of the receipt tokens. (CRA, page date 2024-03-20)

How practitioners describe it (their views, not CRA’s):

A second disposition; impermanent loss may show up as a capital loss on exit. (Insight Accounting CPA, 2026-08-18)

Records to keep: LP tokens redeemed, tokens and units received, CAD values at that moment.

More: DeFi transactions and Canadian tax: the open questions

Liquidity-mining or yield-farming reward tokens CRA partly addressed

What CRA says: Not in CRA's published pages. The 2024-03-20 internal interpretation (non-binding) found native-token rewards for depositing are income under sections 3 and 9; whether business or property income depended on facts it did not have. (CRA, page date 2024-03-20)

How practitioners describe it (their views, not CRA’s):

Income at fair market value when received; that value becomes the reward token's cost. (Rotfleisch & Samulovitch, 2026-06-03)

Records to keep: Each reward claim: date, units, CAD value.

More: Liquidity mining: reward tokens, dilution and mercenary liquidity

Other events

Minting, buying or selling an NFT CRA partly addressed

What CRA says: CRA lists NFTs among crypto-asset types, so general disposition rules apply. It says nothing specific about minting or creator sales. (CRA, page date 2025-11-10)

How practitioners describe it (their views, not CRA’s):

Creator profits are business income and NFTs are inventory; collectors may have capital gains. GST/HST may apply to creator sales. (Kevin Persaud (taxpage.com), 2022-11-07)

Records to keep: Mint costs including gas, purchase and sale prices in CAD, royalties received.

Losing crypto to a hack or scam CRA silent

What CRA says: No CRA page addresses this action as of 2026-11-01.

How practitioners describe it (their views, not CRA’s):

Theft can be a disposition for nil proceeds giving a capital loss if the asset was held as an investment; claims against a bankrupt exchange may qualify for a bad-debt election; losses from personal endeavours are not deductible. (Kevin Persaud (cryptotaxlawyer.com), 2025-03-05)

Records to keep: Police and Canadian Anti-Fraud Centre report numbers, transaction hashes, ACB of what was lost, all messages.

More: Lost crypto to a scam? What to do and who to tell in Canada

Receiving new coins from a hard fork CRA silent

What CRA says: No CRA page addresses this action as of 2026-11-01.

How practitioners describe it (their views, not CRA’s):

A passive holder may receive a tax-free windfall with a nil cost; a later sale is taxable. (Kevin Persaud (taxpage.com), 2022-11-07)
Generally treated like an airdrop (income at fair market value). (Insight Accounting CPA, 2026-08-18)

Records to keep: Fork date, units received, CAD value on that date.

Claims you’ll see online that are out of date (checked 2026-11-01)

Claim	What the official record says
“Crypto capital gains are now two-thirds taxable.”	The proposed increase was cancelled on 2025-03-21; one-half of a capital gain is taxable. Tracker entry
“Platforms start reporting you to CRA under CARF in 2026.”	The application date was deferred to 2027-01-01 and Bill C-31 had not received Royal Assent as of 2026-11-01. Tracker entry
“CRA has confirmed how liquidity pools are taxed.”	Only an internal, non-binding interpretation (2024-03-20) addresses a pool deposit, and practitioners dispute it. Tracker entry
“Stablecoins are now regulated and safe in Canada.”	The Stablecoin Act is enacted but not in force; regulations were only proposed on 2026-10-24, and CDIC does not cover stablecoins. Tracker entry

Where it goes on your return

Capital gains and losses go on Schedule 3, with the taxable half carried to line 12700 (see CRA line 12700 pages).
Business income from crypto is reported on form T2125, Statement of Business or Professional Activities.
Rewards that are income but not a business (for example some staking) are reported as other income. Ask a professional which line fits your facts.

This is not tax advice

Your facts decide your treatment, including whether your activity is a business. Where CRA is silent, pick a reasonable position with a tax professional, apply it consistently, and keep the records listed above.

CRA sources used

CRA, “Information for crypto-asset users and tax professionals” and its sub-pages (modified 2025-10-29 to 2025-12-02): canada.ca
CRA internal technical interpretation 2023-0973071I7 (2024-03-20, non-binding): Crypto-asset transactions with a decentralized finance platform (liquidity pool deposit, redemption, rewards). Severed letter text
CRA internal technical interpretation 2024-1031821I7 (2025-01-17, non-binding): Custodial staking on a centralized crypto-asset exchange platform. Severed letter text

Questions people ask

How is DeFi taxed in Canada?

There is no DeFi-specific CRA guidance as of 2026-11-01. CRA's general crypto rules apply: disposing of a crypto-asset (selling, trading for another crypto-asset, spending, gifting) can produce a capital gain (one-half taxable) or business income, and rewards such as centralized-platform staking are generally income when received. How lending, liquidity pools, wrapping and bridging fit is not addressed by CRA.

Is swapping one token for another taxable in Canada?

Yes. CRA lists trading or exchanging one crypto-asset for another as a disposition, measured in Canadian dollars at the time of the trade.

Are liquidity pool deposits taxable?

CRA has not said. Some practitioners treat depositing tokens for LP tokens as a disposition; others treat it as no disposition until withdrawal. Keep full records and get advice; see the liquidity rows below.

Education only. Nothing on this page is financial, investment, tax or legal advice, or a recommendation to buy, sell, stake, lend or borrow any crypto-asset. Crypto-assets can lose some or all of their value and are not covered by CDIC. Canadian rules change: check the dated sources above and talk to a qualified professional about your situation. Full disclaimer.