Does selling crypto and holding it as fiat in the exchange wallet count as a capital gain or does it only count as a sold gain when you put the profit into a fiat bank?

[thegeoff1]

This is strictly for transactions that have remained entirely on an exchange. Suppose you sell ETH for $100 profit and you choose to convert it into USD. Now, the money is no longer in ETH form and has been converted to USD and is held in your fiat wallet on the exchange. The money has not moved from the exchange wallet and back into a fiat bank account. Is it a capital gain yet or does it only count as a full sale, and therefore a capital gain, when it is deposited back into a fiat account?

[Antomeister]

According to the Canada Revenue Agency (CRA), you are considered to be holding a capital gain/loss the moment you sell a capital property. This means that whether you've converted your profit to USD or hold it in a third-party exchange, your capital gain/loss was executed the moment you sold your Crypto for the $100 profit. Even if you don't transfer the profit to your bank account you still must report the capital gain/loss as long as you have right to receive the proceeds of disposition at some point in time. For more information, check out: Canada Revenue Agency - When do you have a capital gain/loss?

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