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Does MetaMask Report to the CRA?

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Key Takeaways

  • The CRA can likely identify you if you move cryptocurrency between MetaMask and centralized exchanges.
  • Starting in 2027, the CRA will have more visibility into crypto transactions than ever before through new reporting requirements under the 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 Metamask’s tax reporting policies within Canada. We’ll also break down a simple way to report your Metamask taxes in minutes.

What is MetaMask?

MetaMask is one of the most widely used non-custodial crypto wallets. Available as a browser extension and mobile app, it allows users to store Ethereum, ERC-20 tokens, and NFTs. 

Because it’s non-custodial, MetaMask does not hold your funds or require Know Your Customer (KYC) verification. However, if you buy crypto through MetaMask using a third-party service (like a card or bank transfer), that provider may require you to verify your identity.

Does MetaMask report to the CRA?

MetaMask does not report to the Canada Revenue Agency (CRA). As a self-custody wallet, it does not collect user identity data. 

Of course, it’s important to remember that your MetaMask transactions are publicly visible on the blockchain. If you transfer crypto to/from a centralized exchange, the CRA will likely be able to link your wallet address to your identity. 

Starting in 2027, the Crypto-Asset Reporting Framework (CARF) will expand the CRA’s access to crypto transaction data from exchanges. This will likely make it easier than ever for the agency to link identities to ‘anonymous’ wallets.

If I use MetaMask in Canada, do I owe taxes?

Yes. Crypto activity on MetaMask and other wallets is subject to tax.

  • Capital gains: Selling, swapping, or spending crypto through MetaMask is considered a taxable disposal. In Canada, 50% of your net capital gains are taxable.

  • Income: Rewards from staking and airdrops are generally taxed as income at their fair market value at the time of receipt. 

Remember, moving crypto between your own wallets (for example, from Coinbase to MetaMask) is not taxable in Canada.

Does MetaMask have KYC?

You can create and use a MetaMask wallet without providing ID.

If you buy or sell crypto within MetaMask through partners like MoonPay, those third-party services may require you to complete KYC.

Is MetaMask legal in Canada?

Yes. MetaMask is legal to use in Canada. You should stay compliant with CRA rules and report your income and capital gains from cryptocurrency.

How do I reduce my MetaMask taxes in Canada?

While there’s no way to legally evade your taxes, there are steps you can take to reduce your tax bill in Canada

  • Using crypto tax software: Crypto tax software like CoinLedger can help you find your biggest tax-saving opportunities across MetaMask and other platforms.

Get a MetaMask tax report today

Looking for a simple way to report your Metamask taxes? With CoinLedger, you can import your Metamask transactions and auto-generate a complete gains, losses, and income tax report in minutes.

CoinLedger integrates with Metamask 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.

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