The 2024 annual budget supplement for Canada reveals plans for the country to adopt the international Crypto-Asset Reporting Framework (CARF) for taxation by 2026.
Canada is ahead of the game as 47 other countries are expected to follow suit by 2027.
Under the CARF, crypto asset service providers (CASPs) such as cryptocurrency exchanges, brokers, dealers, and automated teller machine operators, both individuals and business entities, would be subject to new reporting requirements.
The supplemental report outlines that stablecoins, derivatives issued as crypto assets, and certain non-fungible tokens are some examples of crypto assets.
CASPs would be obligated to report transactions involving crypto assets and fiat, as well as exchanges between different crypto assets, to the Canada Revenue Agency (CRA).
