Does Newton Report to the CRA?
If you’ve traded on Newton, the CRA may already know about your crypto transactions. Find out what information Newton shares with the CRA and how it affects you.
The Canada Revenue Agency (CRA) has obtained transaction data from cryptocurrency platforms in the past, including historical records through court orders.
Newton, as a FINTRAC‑registered business, must follow Canadian anti–money laundering and tax reporting regulations, including collecting identifying information from customers.
As a popular crypto exchange in Canada, it’s possible that the CRA has requested, or will request, access to Newton user data.
Is Newton legal in Canada?
Yes, Newton is legal and authorized to operate across Canada. The Toronto-based cryptocurrency platform is registered as a Money Services Business (MSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which requires it to comply with strict anti–money laundering and tax reporting obligations.
In August 2022, Newton was granted restricted dealer status by the Canadian Securities Administrators (CSA), allowing it to offer crypto‑asset trading services in all Canadian provinces and territories. This recognition included oversight from each provincial and territorial securities regulator.
Read next: Best Crypto Exchanges Canada
Does Newton report to the CRA?
Platforms like Newton must register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and implement Know Your Customer (KYC) procedures. This means Newton collects personal and transactional data from all users, including government‑issued identification and proof of address.
This information can be shared with federal agencies, including the CRA, when legally required. In practice, this means the data you provide to Newton may be accessed by the CRA to assist in monitoring and enforcing tax compliance.
What do crypto exchanges report to the CRA?
While the CRA has never provided a full breakdown of the exact data it receives from platforms like Newton, it’s clear that a number of information‑sharing channels exist.
For one, Canadian tax authorities have openly stated that they work with domestic crypto businesses to obtain user details. These details can then be used to track buying, selling, and transfers of digital assets, check whether individuals are correctly declaring their crypto holdings, and confirm that any taxes owed are being paid.
There are also mandatory reporting rules that apply to all money services businesses in Canada, including Newton. Since 2022, any transaction of $10,000 CAD or more, whether it’s a deposit or a withdrawal, must be reported to FINTRAC. Alongside this, Newton is obligated to verify each customer’s identity through official documents like government‑issued photo ID and proof of address. This creates a clear link between a person and their Newton account activity, which can be accessed by the CRA when legally required.
Beyond Canada’s borders, the CRA participates in the Joint Chiefs of Global Tax Enforcement (J5), a multinational alliance of tax agencies. Membership in the J5 gives the CRA the ability to tap into international intelligence on cross‑border crypto movements, which can include activity originating from Canadian platforms.
Finally, the blockchain itself is a valuable resource for enforcement. Even though transactions are recorded on decentralized networks, they are permanent and publicly viewable. The CRA uses sophisticated blockchain analytics software to trace the movement of funds, identify patterns, and sometimes link wallet addresses directly to individuals, making it easier to detect undeclared income or gains from crypto activity.
How do I report my Newton taxes to the CRA?
If you’ve earned gains, losses, or income from your Newton transactions, you must report them on your annual tax return to the CRA.
Newton does not issue tax documents, so most users download their transaction history from the platform and use crypto tax calculators like Koinly to calculate the amounts they need to report.
Read next: Canada Crypto Tax Guide
Report your crypto taxes with Koinly
Koinly makes reporting your Newton taxes in Canada easy. You can import your Newton transaction history automatically via SSO, along with support for 900+ other exchanges, wallets, and blockchains.
Once your data is imported, Koinly calculates your capital gains, losses, income, and more. It then generates the tax reports you need to file with the CRA, including Schedule 3 for capital gains.
Learn more about Newton taxes.
FAQs
Do I have to pay tax on my Newton transactions?
Yes. Any capital gains or business income from your Newton activity is taxable in Canada. Learn more in our crypto tax Canada guide.
Do I need to file a Form T1135 for Newton?
Canadian residents who hold specified foreign property (SFP) worth more than $100,000 CAD at any point in the year may need to file Form T1135. Since Newton is a Canadian-based platform, assets held there generally do not count toward this threshold.
Is Newton registered with FINTRAC?
Yes. Newton Crypto Ltd. is registered as a Restricted Dealer in every Canadian province and territory and is also registered with FINTRAC as a Money Services Business (MSB #M19607029).
How do I avoid Newton taxes in Canada?
You cannot legally avoid paying tax on your Newton transactions, but there are strategies to reduce the amount you owe. Methods like tax-loss harvesting can offset some of your gains, and tools like Koinly offer tax optimization features to help you apply these strategies effectively.
