Does Kraken Report to the ATO?

Kraken is a centralized cryptocurrency exchange that supports AUD deposits and trading for Australian investors. To comply with AUSTRAC rules, Kraken requires Know your Customer (KYC) verification from all Australian users.

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The ATO runs a crypto data matching program that collects account and transaction information from Australian-registered exchanges like Kraken. If you use Kraken, your activity is likely already visible to the ATO through this program.

Yes. Crypto activity on Kraken is subject to tax.

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• Capital gains. Selling, swapping, or spending crypto is subject to capital gains tax (CGT). Holding assets for more than 12 months before disposing qualifies you for a 50% CGT discount.

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• Ordinary income. Staking rewards, airdrops, and referral bonuses are taxed as income when received.

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In Australia, you are not taxed when you transfer crypto between wallets you own. For example, there is no tax when you transfer crypto from Kraken to a custodial wallet.

Yes. All Australian users must complete KYC verification to use Kraken.

Yes. Kraken operates legally in Australia and is registered with AUSTRAC.

You cannot legally evade your taxes. However, there are steps Australian investors can take to reduce their tax bill: 

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Tax-loss harvesting. By selling crypto at a loss, you can offset your capital gains and potentially lower your tax bill by thousands of dollars.

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‍Using cryptocurrency tax software. Crypto tax software like CoinLedger can help you track Kraken transactions and help you find your biggest tax-saving opportunities.