Does Coinsquare Report to the CRA?
If you’ve used Coinsquare to trade crypto, the CRA may already have access to some of your account data. Here’s what we know about Coinsquare’s obligations.
Coinsquare previously provided the CRA with transaction data and total earnings between 2014 and 2020 for its 16,500 top active users.
Coinsquare is registered with FINTRAC as a Money Services Business and must comply with Canada’s anti–money laundering and tax reporting requirements, which involve collecting verified customer details.
As one of the largest and longest‑running Canadian exchanges, Coinsquare could be required to share user information with the CRA again.
Is Coinsquare legal in Canada?
Yes, Coinsquare is a legal and regulated crypto exchange in Canada. Based in Toronto, the platform is registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a Money Services Business (MSB), which means it must follow strict anti–money laundering and record‑keeping standards.
In October 2022, Coinsquare received restricted dealer registration from the Canadian Securities Administrators (CSA). This status authorizes the platform to operate in all Canadian provinces and territories under the supervision of the respective securities regulators.
Read next: Best Crypto Exchanges Canada
Does Coinsquare report to the CRA?
Yes. Coinsquare has previously reported to the CRA.
In March 2021, a Federal Court ruling required Coinsquare to hand over detailed information for a subset of users, specifically accounts worth $20,000+ in any year from 2014 to 2020, or among the 16,500 highest trading volume by year, covering transaction history, KYC documents, deposit addresses, and more.
Coinsquare is registered with FINTRAC as a Money Services Business and must comply with Canada’s anti-money laundering and tax reporting regulations, which means collecting verified identity details and account activity from users.
As a long-standing Canadian exchange, Coinsquare could be required by the CRA to provide user data again.
What do crypto exchanges report to the CRA?
The CRA does not publish a complete list of the data it receives from exchanges like Coinsquare, but several information‑sharing practices are well known.
The CRA has acknowledged that it works directly with Canadian‑based crypto companies to collect user information. This helps track digital asset activity, confirm that investors are accurately reporting holdings, and ensure all taxes owed are paid.
Coinsquare must also comply with mandatory transaction reporting rules. Since 2022, any deposit or withdrawal of $10,000 CAD or more must be reported to FINTRAC. As part of its FINTRAC registration, Coinsquare verifies each user’s identity with government‑issued ID and proof of address, linking individuals to their account activity and making it easier for the CRA to trace transactions.
On a global scale, the CRA is part of the Joint Chiefs of Global Tax Enforcement (J5), an alliance of tax agencies from multiple countries. Through this network, the CRA can access international intelligence on cross‑border crypto movements, which can include activity tied to Canadian users.
Lastly, blockchain records themselves provide valuable insight. While transactions happen on decentralized networks, they are publicly visible and traceable. The CRA uses blockchain analytics tools to track flows of funds, spot patterns, and connect wallet addresses to specific individuals, helping identify unreported crypto income or gains.
How do I report my Coinsquare taxes to the CRA?
If you’ve got gains, losses, or income through Coinsquare, you must include these figures in your annual CRA tax return.
Coinsquare does not typically issue tax documents. Instead, users download their transaction history from the platform and use crypto tax calculators like Koinly to calculate capital gains, losses, and other reportable amounts.
Read next: Canada Crypto Tax Guide
Report your crypto taxes with Koinly
Koinly makes it easy to report your Coinsquare crypto taxes in Canada. You can connect your account by uploading a CSV of your transaction history, as well as uploading your transaction history from more than 900 other supported wallets, blockchains, and exchanges.
Koinly will then calculate your capital gains, losses, interest, and other income, and generate the necessary reports to file with the CRA, such as Schedule 3 for capital gains.
Learn more about Coinsquare taxes.
FAQs
Do I have to pay tax on my Coinsquare transactions?
Yes. Any gains or business income from Coinsquare activity are subject to tax in Canada. Learn more in our crypto tax Canada guide.
Do I need to file a Form T1135 for Coinsquare?
If you hold specified foreign property (SFP) worth more than $100,000 CAD at any time during the year, you may need to file Form T1135. Since Coinsquare is a Canadian‑based platform, assets held there generally do not count toward this threshold.
Is Coinsquare registered with FINTRAC?
Yes. Coinsquare Ltd. is registered as a Restricted Dealer in all Canadian provinces and territories and is also registered with FINTRAC as a Money Services Business (MSB #M17065139).
How do I avoid Coinsquare taxes in Canada?
You cannot legally avoid paying taxes on your Coinsquare activity, but you can reduce your liability through methods like tax‑loss harvesting. Tools like Koinly can help identify and apply these strategies effectively.
