The Canadian government has announced the introduction of new measures to oversee cryptocurrency companies, set to take effect in 2026. This decision is part of the implementation of the Crypto-Asset Reporting Framework (CARF), approved by the Organisation for Economic Co-operation and Development (OECD). It involves the automatic exchange of tax information related to crypto assets.
Under the new regulations, which were included in this year’s federal budget, cryptocurrency exchanges, brokers, dealers, and ATM operators will be required to annually report all transactions between crypto assets and fiat currencies, as well as crypto asset transfers, to the Canada Revenue Agency (CRA). Reporting will also cover client information, including names, addresses, birthdates, tax identification numbers, and jurisdictions of residence.
It is worth noting that Central Bank Digital Currencies (CBDCs) and other electronic money products will not be included in the list of reportable assets, but they will be subject to increased scrutiny under an expanded OECD common reporting standard.
The Canadian government has allocated CA$51.6 million for the initial five years of the program, with subsequent annual funding of CA$7.3 million to cover implementation and administrative expenses.
These changes underscore Canada’s efforts to enhance transparency and security in cryptocurrency operations and prepare for a new phase in the regulation of digital finances at both national and international levels.
