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Moving crypto between wallets that you own is not a taxable disposition, according to the CRA. Sending coins to another person, paying with them or trading them is different. Network fees and bridged coins are not covered by the CRA pages, so keep a clear record of each move.
Is moving crypto between your own wallets taxable?
No. The CRA page on income tax and crypto-asset transactions says some transactions do not result in a taxable disposition, and its example is a transfer of crypto-assets between wallets that you own. You still hold the same coins. Nothing was sold, traded or given away, so there is no gain or loss to report.
The same logic applies to a withdrawal from a trading platform to a wallet in your own name, and to a deposit from your wallet to the platform, as long as both sides belong to you. The cost of the coin does not change on the way. If you want the cost math in detail, our page on the crypto adjusted cost base shows how a running cost per coin works.
The word that matters is "own". A transfer to a wallet that someone else controls is a different event, covered further down. See also our hub on crypto tax in Canada.
Is a network fee a disposition?
The CRA crypto pages we read do not mention network fees, so there is no official answer to quote. Two pieces of CRA wording help you think it through. Paying for goods or services with crypto is described as a disposition and treated as barter. And when you work out a capital gain, the CRA subtracts the outlays and expenses incurred to make a disposition from the proceeds.
One cautious reading follows from that. If the network fee is taken out of your coins, those coins were spent on a service, so a very small disposition can happen. Here is a made up example, computed in a script.
| Item | Amount | Result |
|---|---|---|
| Coin sent | 0.5 coin to your own cold wallet | No gain or loss |
| Cost per coin | $50,000 | Unchanged after the move |
| Fee paid in coin | 0.0002 coin | See the text below |
| Fair market value that day | $62,000 per coin | Used to value the fee |
The fee of 0.0002 coin is worth $12.40 at $62,000 per coin. The cost of that slice at $50,000 per coin is $10. The difference is a gain of $2.40, and half of it, $1.20, would be taxable if the fee is treated as a disposition. The numbers are tiny, which is why many people record the fee and move on. Whether you report it is a question for the CRA or a qualified professional, because no CRA crypto page settles it.
Whatever you decide, write down the fee in coin, its Canadian dollar value and the date. The crypto records page shows a sample line for it.
How do you prove a transfer is to your own wallet?
The CRA books and records page asks you to keep the addresses associated with each digital wallet you used, along with the date and time of each transaction and a description of the other party, even if that is only an address. For a move between your own wallets, that means the sending address, the receiving address and the transaction record on both ends.
- Note which wallet or platform account each address belongs to when you set it up.
- Keep the platform withdrawal record and the wallet's own incoming record side by side.
- Check that the units sent and received match once the fee is taken into account.
- Record the date and time on both ends, since they can differ by minutes or more.
The CRA also asks for transfer ledgers from platforms, meaning deposits and withdrawals of coin. Those ledgers are often the quickest way to match both halves of a move.
What about sending crypto to someone else?
Sending coin to another person is not a wallet transfer in the CRA sense. The CRA crypto pages list gifts or donations as dispositions, and they list paying for goods or services as a disposition treated as barter. If you send coin to a friend as a gift, you work out a gain or loss as if you sold it at its fair market value. If you send coin to a seller as payment, the same applies.
A transfer to an account you do not control, for example a platform account in another person's name, belongs here too. When the real owner is unclear, the safe habit is to record who owned the receiving address and why you sent the coin. Our pages on capital gains examples and paying in crypto and GST/HST show the numbers for a payment.
How do you handle bridged or wrapped coins?
The CRA crypto pages say nothing about bridges, wrapped coins or moving a coin to another network. One view is that a bridge moves the same value into another form, like a wallet transfer. Another is that you swap one coin for a different coin, which is a trade and a disposition under the CRA wording. We have not found an official page that picks between them.
How the transaction works matters. If you give up one coin and receive a different one, the CRA table lists a trade as both a disposition and an acquisition, and our page on crypto to crypto swaps covers that case. For a bridge, keep the records of both legs and ask the CRA or a qualified professional how to treat it.
What does the CRA ask for?
The CRA says you must be able to support what you report. Its books and records page lists the number of units and the type of crypto-asset for each transaction, the date and time, the value in Canadian dollars at that moment, a description of the transaction and the other party, the addresses of your wallets, and the beginning and ending balance of each wallet for each year with the cost of the beginning balance.
If a review ever asks about a withdrawal from a platform, a wallet record that matches it is the best answer. Our page on CRA crypto audits explains how those requests arrive.
What records do you need for transfers?
For each move, one line in your own log is usually enough, as long as it can be tied to the platform and wallet records.
- Date and time of the transfer.
- Coin type and the units sent and received.
- Sending and receiving wallet or platform, with both addresses.
- Network fee in coin and its Canadian dollar value.
- A note saying both sides are yours.
- The transaction identifier from the blockchain or the platform record.
Keep the records for at least six years from the end of the last tax year they relate to, as the CRA says. The records page has a sample table.
This page is information only. We do not prepare returns, we do not represent the CRA or any organization, we do not guarantee that the figures fit your case and we are not liable for decisions based on this page. The example is made up.
Frequently asked questions
Is moving crypto between my own wallets taxable in Canada?
No. The CRA says a transfer of crypto-assets between wallets that you own is an example of a transaction that does not result in a taxable disposition. The cost stays the same. Keep the addresses and the transaction records so you can show that both wallets are yours.
Do I pay tax when I withdraw crypto from a platform?
A withdrawal to a wallet you own is a transfer and not a sale, so it creates no gain or loss. Withdrawing government-issued currency after selling coin is different, because the sale is the disposition. The CRA asks for platform transfer ledgers that show both kinds of withdrawal.
Is the network fee on a transfer taxable?
No CRA crypto page covers network fees. If the fee is paid in coin, it may be a small disposition, since paying for a service with coin is treated as barter. The gain is usually a few dollars. Record the fee and ask the CRA or a professional how to treat it.
What if I send crypto to a friend or family member?
That is not a wallet transfer. The CRA lists a gift of crypto-assets as a disposition, so you work out a gain or loss at the fair market value on the day you send it. The receiver should keep that value as the cost of the coin.
Do I need to report wallet transfers on my tax return?
There is no line for a transfer between your own wallets, and no gain to enter on Schedule 3. You still keep the records. The CRA asks for wallet addresses and wallet balances at the start and end of each year, which a transfer log helps you build.
How long should I keep wallet transfer records?
The CRA says to keep crypto records for at least six years from the end of the last tax year they relate to. A transfer made this year can matter for a sale years later, because it traces where a coin and its cost came from.