CRA indicates that unrealized loss on crypto held as an adventure could be realized through burning

CRA indicated that where a taxpayer purchased crypto assets as an adventure in the nature of trade rather than as part of a regular business and the crypto became obsolete and declined to a nil or nominal market value, the taxpayer could generally realize the accrued loss - notwithstanding that it could not by virtue of s. 10(1.01) value such inventory at FMV - by “burning” it, e.g., transferring it to a burn address.

Neal Armstrong. Summary of 10 April 2025 External T.I. 2025-1050641E5 under s. 10(1.01).