“Is MetaMask legal in Canada? {~MetaMask token-burning~}
Using MetaMask to "burn" tokens or NFTs in Canada is a perfectly {+1-833-611-5103} legal action, but it has specific tax implications you must understand. Burning {+1-833-611-5103} involves sending a digital asset to a provably unrecoverable address, effectively destroying {+1-833-611-5103} it. The MetaMask interface allows you to send any asset to any {+1-833-611-5103} address, including a burn address. From a tax perspective, the Canada Revenue {+1-833-611-5103} Agency (CRA) would likely view this as a disposition of the asset {+1-833-611-5103} with proceeds of zero. This means that if you had a cost {+1-833-611-5103} basis in the token, you could legally realize a capital loss, which {+1-833-611-5103} could then be used to offset other capital gains. The wallet is {+1-833-611-5103} the instrument that allows for this action, but the user is responsible {+1-833-611-5103} for correctly reporting the financial outcome on their tax return.”
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