Key takeaways
- Tangem Wallet does not report directly to the CRA.
- The CRA can still trace Tangem activity through exchange data and blockchain analysis.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Tangem Walletâs tax reporting policies within Canada. Weâll also break down a simple way to report your Tangem Wallet taxes in minutes.
What is Tangem Wallet?
Tangem is a non-custodial hardware wallet that looks like a credit card. Tangem allows you to hold your cryptocurrency offline and manage your holdings (like Bitcoin, Ethereum, and more) through the Tangem mobile app.Â
Tangem does not collect Know Your Customer (KYC) information and does not issue tax forms. However, if you transfer crypto to/from a Canadian exchange, your wallet can likely be identified by the Canada Revenue Agency (CRA).
Does Tangem Wallet report to the CRA?
No. Tangem does not share data with the CRA.
Of course, itâs likely the CRA can still track your unreported income from Tangem and other platforms:Â
- Blockchain analysis: Transactions on the blockchain are publicly visible. The CRA can use this information to trace transactions from âanonymousâ wallets, especially if youâve transferred to/from an exchange with KYC. â
- CARF in 2027: In 2027, the Crypto-Asset Reporting Framework (CARF) will be put into effect in Canada, requiring Canadian exchanges and custodial wallet providers to share detailed transaction data with the CRA. This will make it easier for the CRA to identify âanonymousâ wallets.
If I use Tangem Wallet in Canada, do I owe taxes?
Yes. Crypto transactions through Tangem are taxable in Canada:
- Capital gains: Selling, swapping, or spending crypto is a taxable disposal. In Canada, 50% of your net capital gains are included in your taxable income.
- Income: Rewards from staking, mining, or airdrops are taxed as income upon receipt.Â
Moving crypto between your own wallets is not taxable.
Does Tangem Wallet have KYC?
No. You can use Tangem without providing KYC.Â
Is Tangem Wallet legal in Canada?
Yes. Tangem is legal to use in Canada.Â
You are legally required to report taxable income from Tangem and other platforms.
How do I avoid Tangem taxes in Canada?
While you canât evade your taxes, there are strategies to legally reduce your tax bill:Â
- Tax-loss harvesting: By selling crypto at a loss, you can offset gains. Some investors choose to intentionally take losses on crypto for the tax benefits! â
- Crypto tax software: Crypto tax software can track your Tangem transactions, help you generate a tax report, and spot your biggest tax-saving opportunities.
Looking for a simple way to report your Tangem Wallet taxes? With CoinLedger, you can import your Tangem Wallet transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Tangem Wallet 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
Hereâs how CoinLedger can help you take the stress out of tax season:Â
- Import transactions from Tangem and hundreds of other crypto platformsÂ
- Keep track of income and capital gains in one dashboardÂ
- Generate ready-to-file CRA tax reports
Get started with a free CoinLedger account today.
