www.canadianlawyermag.com 29
CRYPTO'S MOST
VALUABLE: BITCOIN
As of April 11, 2022
Total circulating: 19 million
Average Market Price: US$39,489
Market Capitalization: US$757.72
billion
Market Capitalization Nov. 9, 2021:
US$1.279 trillion
Exchange Trade Volume: US$309
million
Exchange Trade Volume May 19,
2021: $3.192 billion
ently tallied on the blockchain, crypto is also
easier to audit than other assets – art or gold,
for example – which can be hidden, says
Cloutier. "Cash is the ultimate refuge for tax
evaders. And crypto is the ultimate problem.
Forever, you'll be found. If the CRA pulls out
the information from the blockchain, what
are you going to say?"
There is a tension between a self-re-
porting system such as Canada's and the
decentralized financial system in which
crypto exists, says Piccolo. He says the CRA
will have to determine appropriate reporting
obligations and whether additional reporting
requirements are necessary.
"The whole point of the blockchain is that
you have the ledger and that you can trace
everything back to the chain," he says. "The
question that has to be answered, I think, is
how much of that information, in a self-re-
porting system, is CRA going to require the
taxpayers to actually provide?"
From a policy perspective, the CRA will
have to create an administratively easy
system while providing relevant informa-
tion to the agency, says Piccolo. "Ultimately,
they'll have to get there."
"That's where there's going to be a lot of
questions. A lot of the existing questions
aren't necessarily that new. I think they're
just being applied to this space." What will
be "completely different" is how taxpayers
report chunks of the blockchain to the CRA,
he says.
Source: Blockchain.com
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