In Canada, major exchanges like Coinsmart are required to register with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada). FINTRAC specifically is tasked with preventing tax fraud and money laundering — so it’s likely that your information is shared with the CRA.
In 2023, Coinsmart’s parent company WonderFi announced that it was planning to wind down the platform. However, it’s important to remember that past transactions will likely still be shared with the government.
Yes. In Canada, your transactions on Coinsmart and other platforms are subject to income and capital gains tax.
If you’ve earned or disposed of (ex. Sold or traded away cryptocurrency) during the year, you’ll have a tax liability to report to the CRA.
For more information, check out our complete Canada guide to cryptocurrency tax.
Yes. Coinsmart legally operates in Canada.
Remember, there is no way to legally evade your taxes in Canada. However, tools like tax-loss harvesting and cryptocurrency tax software can help you save thousands of dollars legally.
For more information, check out our guide on how to avoid crypto tax in Canada.