Does NDAX Report to the CRA?
If you trade crypto through NDAX, the CRA could already be aware of your transactions. Here’s what we know about NDAX’s obligations and how they might impact you.
The Canada Revenue Agency has previously secured customer transaction data from Canadian crypto platforms.
NDAX is registered with FINTRAC as a Money Services Business and must meet Canada’s anti–money laundering and tax reporting requirements, which involve collecting verified personal details from customers.
As a major exchange in Canada’s crypto market, NDAX could be asked by the CRA to provide user data.
Is NDAX legal in Canada?
Yes, NDAX operates legally and is authorized across the country. The Calgary‑based cryptocurrency exchange is registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a Money Services Business (MSB), which requires it to follow Canada’s anti-money laundering laws and maintain strict reporting standards.
In September 2022, NDAX was approved as a restricted dealer by the Canadian Securities Administrators (CSA). This registration permits NDAX to offer crypto‑asset trading services in all Canadian provinces and territories under the supervision of each regional securities regulator.
Read next: Best Crypto Exchanges Canada
Does NDAX report to the CRA?
Under Canadian law, platforms like NDAX must register with FINTRAC and implement Know Your Customer (KYC) verification for all users. This process involves collecting government‑issued identification, proof of address, and tracking transaction activity on the platform.
The information NDAX gathers can be shared with federal agencies, including the CRA, when required by law. In practice, this means that your personal and transactional data may be provided to the CRA to support tax compliance checks.
What do crypto exchanges report to the CRA?
The CRA has not provided a detailed public list of the information it receives from exchanges like NDAX, but several key reporting practices are known.
The CRA has stated that it works directly with Canadian crypto businesses to collect customer data. These details help track trading activity, confirm whether holdings are being reported accurately, and ensure all taxes owed are paid.
NDAX is also subject to federal reporting rules that apply to all Canadian money services businesses. Since 2022, any single deposit or withdrawal of $10,000 CAD or more must be reported to FINTRAC. Alongside this, NDAX must verify customer identities with official ID and proof of address, linking accounts to specific individuals and enabling the CRA to trace transactions when necessary.
On an international level, the CRA is part of the Joint Chiefs of Global Tax Enforcement (J5), an alliance of tax agencies from multiple countries. This group allows the CRA to access global intelligence on cross‑border crypto transactions, including those linked to Canadian users.
Finally, blockchain records themselves are an important source of information. Although transactions take place on decentralized networks, they are recorded publicly. The CRA uses blockchain analysis tools to follow transactions, identify patterns, and connect wallet addresses to individuals, making it possible to detect undeclared crypto income or gains.
How do I report my NDAX taxes to the CRA?
If you’ve made gains, losses, or earned income from your NDAX activity, you must report these figures on your annual tax return to the CRA.
NDAX does not issue official tax forms for most trading activity. Instead, users download their transaction history and use a crypto tax calculator like Koinly to calculate capital gains, losses, and other income.
Read next: Canada Crypto Tax Guide
Report your crypto taxes with Koinly
Koinly streamlines the process of filing your NDAX crypto taxes in Canada. You can connect your NDAX account via SSO or upload a CSV file, along with transaction data from 900+ other supported exchanges, wallets, and blockchains.
Koinly will then calculate your capital gains, losses, interest income, and more, before generating the tax reports you need to file with the CRA, such as Schedule 3 for capital gains.
Learn more about NDAX taxes.
FAQs
Do I have to pay tax on my NDAX transactions?
Yes. Any profits or business income from NDAX trading are subject to Canadian tax rules. Learn more in our crypto tax Canada guide.
Do I need to file a Form T1135 for NDAX?
If you hold specified foreign property (SFP) valued at more than $100,000 CAD at any time during the year, you may need to file Form T1135. Since NDAX is a Canadian‑based exchange, holdings on the platform generally do not count toward this threshold.
Is NDAX registered with FINTRAC?
Yes. NDAX Inc. is registered as a Restricted Dealer in every Canadian province and territory and is also registered with FINTRAC as a Money Services Business (MSB #M18632135).
How do I avoid NDAX taxes in Canada?
You can’t legally avoid paying tax on your NDAX activity, but you can reduce your bill through legal strategies such as tax‑loss harvesting. Koinly includes tax optimization tools to help identify and apply these strategies effectively.
