Hi

Just saw this and it seems there's a lot of disagreement and there should and will be for obvious reasons.  I just wanted to add my 2 cents about the cra.

U do not have to report bitcoin or cash if you are not depositing it into a bank.  I actually just got finished my year of frozen bank accounts and credit cards dealing with the cra.  Ur chances of winning against them let's just say are slim to none of course there are rare cases.

That being said if u cash your bit coin where are you going to keep your cash under a pillow hidden.  This is actually what a lot of people do with large amounts of cash.  The rule of thumb in Canada used to be any deposit that is equal to or over 10000 dollars has to be reported to fintrac.  I think they changed this law this year and now banks have to notify the cra deposit in cash over 3 thousand dollars if they deem it suspicious what ever this means.  I'm not 100percent sure of my last statement but I believe during my research last year I read it. 
That being said even if reported if it is from bitcoin I'm not sure what they will or can do.  This is probably a case by case thing with the cra what ever they do it will probably be a lengthy headache for the person depositing the cash.  The only way a large sum transaction isn't reported is if it's from a public body
Ie. The government municipality hospital etc. Or a financial institution like a bank.
After reporting to the cra it doesn't mean they will act but when it comes to tax time you never know what will happen.  Believe me I went through a year of suffering. So in conclusion I believe the question about taxing bitcoin is legitimate if you decide to put the cash or check into a bank

Edit
For any confusion my account wasn't frozen due to bitcoin but I have been trading crypto for years and making a living off of it.  I also won money at a couple casinos and had a import export business with large wire transactions going in and out.  They audited me said I owed 68000 dollars.  Which was ridiculous so I had to deal with the cra.  U definitely do not want to get audited.  They audited me 3 more times after because I sent them legitimate paperwork and got accountants involved. How ever this took a year and the cra switched there's collection agent on me 5 times and each time I had to report the exact same thing over and over this process took a year and my final owing being less than 3000 dollars and my credit in shambles due to not being able to make any credit card payments or use a bank.  So yes if u have bitcoin and plan on cashing them in MAKE SURE you do some research contact an accountant and the cra. I plan on cashing some bitcoin in soon but honestly I'm freaking hesitant lol. When you ask the cra they may not know a thing about bit coin but when time comes and the agent that didn't know a thing about bitcoin sees a large sum of money in an account what do you think the government will do.  Hmm this guy has a lump some of money not reported if it's taxable we need to take as much a we can now the agent with little knowledge gets booted off the case and in comes the government of Canada...whether they know nothing or something about bitcoin doesn't matter at this point.  Chances are even if you are able to keep all your money your gonna have to do a bunch of things that you more than likely don't want to do because you shouldn't have too but that's the way it goes