Does Trust Wallet Report to the CRA?

Trust Wallet is a popular mobile-first, multi-chain wallet owned by Binance. Trust Wallet allows users to hold thousands of cryptocurrencies, interact with decentralized apps (dApps), and trade across different blockchains.

Because it’s non-custodial, Trust Wallet does not hold your funds or require Know Your Customer (KYC) verification. However, if you buy crypto through fiat partners inside the app, those providers may require KYC.

Even though Trust Wallet does not issue tax forms, the CRA can still trace your activity if you transfer crypto to/from a centralized exchange (more on this below).

Trust Wallet does not collect personal information or report directly to the CRA.

However, it’s still possible for the CRA to track your taxable income on Trust Wallet. 

• Blockchain analytics: All Trust Wallet transactions are public on-chain. If you move funds between Trust Wallet and a centralized exchange, the CRA can trace and link those transfers to your identity.‍
• CARF: When Canada implements the Crypto-Asset Reporting Framework, Canadian exchanges, brokers, and custodial wallet providers will be required to share detailed customer and transaction data with the CRA.

Yes. Crypto activity on Trust Wallet and other platforms is subject to tax.

• Capital gains: Selling, swapping, or spending crypto triggers capital gains tax. In Canada, 50% of your net capital gains are taxable.
• Income: Rewards from staking, mining and airdrops are generally taxed as income at their fair market value when received.

Moving crypto between your own wallets (for example, from Kraken to Trust Wallet) is not a taxable event in Canada.

Trust Wallet does not require KYC when creating a wallet.

• Non-custodial by default. You can set up Trust Wallet without providing any personal details.‍
• Third-party providers. If you buy crypto through a third-party service provider via Trust Wallet, you may need to verify your identity with that service.

Yes. Trust Wallet is legal to use in Canada.

You are required to report your taxable income and stay compliant with CRA rules. 

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

• Tax-loss harvesting: By selling crypto at a loss, you can offset gains and lower your tax bill.‍
• Using crypto tax software: Crypto tax software like CoinLedger can help you track your transactions from Trust Wallet and other platforms and help you identify your biggest tax-saving opportunities.

How CoinLedger can help

Tracking your crypto taxes manually can be overwhelming. Here’s how CoinLedger simplifies the process: 

• Import transactions directly from Trust Wallet and hundreds of other blockchains and exchanges.
• Track capital gains and income across all of your crypto platforms.
• Generate ready-to-file CRA tax reports in minutes.

Get started with CoinLedger, the platform trusted by 700,000+ investors.