While the UK Inland Revenue is prepared to treat cryptocurrency as property with a situs in the country of residence of its holder, the CRA has stated that it is still reviewing the matter (2021-0896021C6 – answer to question 11 at the October, 2021, APFF roundtable). All the more reason, perhaps, to take the precaution recommended by Musani and Singh in their article “Foreign Property Reporting: Where Is Your Crypto?” 21:4 Tax for the Owner-Manager (October 2021): they suggested treating crypo as foreign property in any case for the purposes of completing the T1135.
February 17, 2023 update: The CRA is still studying this issue according to its response to question 1 posed at the 2022 CTF Conference Roundtable.
