Key takeaways
- Jupiter does not report directly to the Canada Revenue Agency (CRA).
- The CRA can still track Jupiter activity through blockchain analysis and the upcoming Crypto-Asset Reporting Framework (CARF).
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Jupiter’s tax reporting policies within Canada. We’ll also break down a simple way to report your Jupiter taxes in minutes.
What is Jupiter Exchange?
Jupiter Exchange is a decentralized exchange (DEX) aggregator on Solana that allows users to swap tokens across multiple liquidity pools.
Jupiter does not collect Know Your Customer (KYC) information or issue tax forms. Users are responsible for reporting their own gains and income to the CRA. However, trades on Solana are public, and it’s likely that your trades can be traced by tax authorities.
Does Jupiter Exchange report to the CRA?
While Jupiter does not share user data with the CRA, there are some methods the tax agency can use to track transactions:Â
- All Solana transactions are public and traceable. It’s likely that your wallet can be identified, especially if you’ve transferred to/from an exchange with KYC.Â
- In 2027, Canada will adopt the Crypto-Asset Reporting Framework (CARF), requiring exchanges and custodial wallets to send detailed transaction records to the CRA. It’s likely that this will give authorities more information than ever that they can use to identify your wallet.
If I use Jupiter Exchange in Canada, do I owe taxes?
Yes. Crypto trades on Jupiter are subject to tax in Canada:
- Capital gains: When you swap/trade away cryptocurrency on Jupiter, this is considered a disposal subject to capital gains tax. In Canada, 50 percent of net capital gains are included in taxable income.
- Income: Rewards from staking, mining, and airdrops are taxed as income when received.
Transferring crypto between your own wallets is not taxable.
Does Jupiter Exchange have KYC?
No. Jupiter does not require KYC.Â
Is Jupiter Exchange legal in Canada?
Yes. Jupiter is legal to use in Canada.Â
You are required to accurately report taxable income to the CRA.
How do I reduce my Canadian taxes from Jupiter Exchange activity?
While you can’t evade your crypto taxes, here are a couple of ways to legally reduce your tax bill:Â
- Tax-loss harvesting: By selling crypto at a loss, you can offset capital gains. Some investors choose to intentionally sell their crypto at a loss, a strategy known as tax-loss harvesting. ‍
- Use crypto tax software: Crypto tax software like CoinLedger can import Jupiter trades and show you opportunities to save money on your taxes.
Looking for a simple way to report your Jupiter taxes? With CoinLedger, you can import your Jupiter transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Jupiter and dozens of other wallets, blockchains, and cryptocurrency exchanges to automate the entire crypto tax reporting process.
You can get started with a free preview report today.
How CoinLedger can help
Here’s why more than 700,000 investors in Canada and around the world use CoinLedger:Â
- Import transaction data from Jupiter and hundreds of other wallets and exchangesÂ
- Automatically track capital gains and income
- Generate tax reports in minutesÂ
Get started with a free CoinLedger account today.
