Does KuCoin Report to the CRA?
If you're a Canadian resident who used KuCoin previously, the CRA might already know. Learn how the CRA tracks crypto and what it means for your taxes.
KuCoin withdrew operations from Canada in July 2022 following legal action from the Ontario Securities Commission.
The platform was fined more than $2 million for operating illegally.
It’s unlikely KuCoin will share data with the CRA going forward, but your previous transactions are taxable.
Is KuCoin legal in Canada?
No. KuCoin is no longer legal for use in Canada as of July 2022.
In June 2021, the Ontario Securities Commission (OSC) alleged that KuCoin had failed to comply with provincial securities laws by operating an unregistered crypto trading platform. According to the OSC, KuCoin was offering crypto asset products classified as securities and derivatives to Canadian users without proper authorization.
On July 22, 2022, the OSC issued a permanent ban preventing KuCoin from participating in Ontario’s capital markets. The exchange was also ordered to pay a $2 million administrative penalty, along with $96,550.35 to cover the costs of the OSC’s investigation.
Why isn’t KuCoin legal in Canada?
KuCoin cannot legally operate in Canada—specifically in Ontario—because the Ontario Securities Commission (OSC) determined in mid‑2021 that it was running an unregistered crypto-asset trading platform. The OSC found KuCoin offered investment products considered securities and derivatives without proper registration, and unlike some other platforms, KuCoin chose not to cooperate with the OSC’s investigation.
Read next: Best Crypto Exchanges Canada
Does KuCoin report to the CRA?
As KuCoin is not authorized to operate in Canada, it’s unlikely the platform is currently reporting user data to the Canada Revenue Agency (CRA).
In contrast, exchanges that are properly registered in Canada must adhere to FINTRAC guidelines, including strict know-your-customer (KYC) protocols. These compliant platforms may be obligated to share user information with authorities like the CRA when legally required.
What do crypto exchanges report to the CRA?
The Canada Revenue Agency (CRA) hasn’t fully disclosed the exact details it receives from crypto exchanges, but its approach to crypto tax enforcement has grown significantly more advanced and assertive in recent years.
What’s known is that the CRA actively collaborates with regulated cryptocurrency platforms to gather user data, helping the agency track Canadian crypto activity and ensure individuals are accurately reporting their assets and paying any taxes owed.
Although KuCoin is not a registered platform in Canada and is unlikely to share user data with the CRA, exchanges that are licensed to operate within the country must meet strict compliance standards. Since January 2022, all money services businesses have been required to report crypto transactions over $10,000. FINTRAC-registered platforms must also verify users’ identities using government-issued ID and proof of address, creating a clear connection between individuals and their wallets.
The CRA also works with international partners through the Joint Chiefs of Global Tax Enforcement (J5), sharing intelligence and resources to investigate offshore crypto holdings and cross-border tax evasion. Combined with blockchain forensics tools, the CRA can trace wallet activity across public ledgers and potentially link anonymous addresses back to specific taxpayers.
How do I report my KuCoin taxes to the CRA?
If you’ve earned income, realized gains, or had losses from trading on KuCoin, you’re required to report these to the CRA, either by updating a previous return or, if applicable, through the Voluntary Disclosures Program.
Because KuCoin doesn’t issue tax forms for Canadian users, many traders rely on crypto tax calculators like Koinly to calculate their taxable activity and generate the necessary reports for filing with the CRA.
Read next: Canada Crypto Tax Guide
Report your crypto taxes with Koinly
Koinly simplifies crypto tax reporting for Canadian users. You can easily import your KuCoin transaction history using an API connection or by uploading a CSV file.
Once your data is imported, Koinly automatically calculates your capital gains, losses, income, and other taxable events. It then generates the tax reports you need to file accurately with the CRA. Learn more about how to report your KuCoin taxes.
FAQs
Do I have to pay tax on my KuCoin transactions?
Yes. Any gains or business income from your KuCoin transactions are taxable. You can learn more in our crypto tax Canada guide.
Do I need to file a Form T1135 for KuCoin?
Canadian residents who own specified foreign property (SFP), which can include certain crypto assets, may be required to file Form T1135 with the CRA if the total cost exceeds $100,000 CAD at any point during the year. Whether your crypto holdings fall under this rule depends on how and where the assets are stored or held, such as if they're kept on foreign-based platforms like KuCoin.
Is KuCoin registered with FINTRAC?
No. KuCoin no longer operates in Canada and is not FINTRAC-registered.
How do I avoid KuCoin taxes in Canada?
While you can’t legally skip out on paying crypto taxes in Canada, there are legitimate strategies to minimize what you owe, such as using tax loss harvesting to offset gains. Tools like Koinly offer tax optimization features that help identify opportunities to reduce your tax liability. Check out our guide on how to legally cash out crypto without paying tax in Canada.
