Key takeaways
- Phantom Wallet does not report directly to the CRA.
- If you transfer between Phantom Wallet and a centralized exchange, itâs likely that the CRA can track your transactions.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Phantomâs tax reporting policies within Canada. Weâll also break down a simple way to report your Phantom taxes in minutes.
What is Phantom Wallet?
Phantom is a Solana-based wallet available as a mobile app and browser extension. Phantom allows users to hold and stake SOL and connect to decentralized apps on Solana.Â
Phantom doesnât hold your funds or require Know Your Customer (KYC). While Phantom doesnât report to the CRA, your activity can still be tracked if you move crypto in and out of a centralized exchange.
Does Phantom Wallet report to the CRA?
No. Phantom does not share data with the CRA or issue tax forms.
However, itâs still possible that the CRA can track your Phantom Wallet transactions:Â
- Blockchain analytics: Transactions on Phantom are public and can be traced. If you transfer crypto between Phantom and an exchange with KYC, itâs likely that your wallet address can be linked to your identity. â
- CARF in 2027: Canada will implement the Crypto-Asset Reporting Framework in 2027, requiring Canadian exchanges and custodial wallets to share user and transaction data. This will give the CRA more visibility into crypto transactions than ever before and likely will make it easier for the agency to identify âanonymousâ wallets.
If I use Phantom Wallet in Canada, do I owe taxes?
Yes. Crypto activity on Phantom and other platforms is subject to tax.
- Capital gains: Selling, swapping, or spending crypto is taxable. In Canada, 50% of your net capital gains are taxable.Â
- Income: Staking, mining, and airdrops are taxed as income upon receipt.Â
Moving crypto between your own wallets (like transferring crypto from BitBuy to Phantom) is not taxable.
Does Phantom Wallet have KYC?
No. Phantom does not collect KYC information.Â
Is Phantom Wallet legal in Canada?
Yes. Phantom is legal in Canada. You are required to report your capital gains, losses, and income from Phantom.Â
How do I reduce my Phantom Wallet taxes in Canada?
While thereâs no way to legally evade your taxes, here are steps you can take to reduce your tax bill:
- Tax-loss harvesting. By selling crypto at a loss, you can offset capital gains and lower your tax liability.â
- Using crypto tax software. Crypto tax software like CoinLedger can help you find your biggest tax savings opportunities. Customers have used CoinLedger to save millions!
Looking for a simple way to report your Phantom taxes? With CoinLedger, you can import your Phantom transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Phantom 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
Tracking your Phantom taxes manually can be difficult. Hereâs how CoinLedger can help:Â
- Import transactions directly from Phantom Wallet and hundreds of other wallets and exchangesÂ
- Track capital gains and crypto income in one place.
- Generate ready-to-file CRA tax reportsÂ
Get started with CoinLedger.
