Trail notes
- CARF is a proposed regime under which crypto-asset service providers would file annual information returns about users.
- Draft legislation was released on 2025-08-15; Budget 2025 deferred the application date to 2027-01-01.
- Bill C-31 includes CARF; a committee report with amendments was presented on 2026-10-30, and there was no Royal Assent as of that date.
- The first reporting date under the deferred timeline is not confirmed on an official page.
- Your obligation to report crypto dispositions and income exists now, whether or not CARF passes.
What CARF is
The Crypto-Asset Reporting Framework (CARF) is a set of proposed rules that would require crypto platforms and similar service providers to collect information about their users and report it to the Canada Revenue Agency (CRA). In the government’s words when it introduced the implementing bill, the goal is “ensuring crypto platforms collect and share information about users with tax authorities.”
The August 2025 draft adds a new Part XXI to the Income Tax Act. Under it, reporting crypto-asset service providers would file an information return before May 2 of each calendar year.
CARF is proposed, not law. Bill C-31, which contains it, had a committee report with amendments presented on 2026-10-30 and had not received Royal Assent.
Where the law stands
| Date | Step | Source |
|---|---|---|
| 2025-08-15 | Finance Canada releases draft legislation adding Part XXI, Crypto-Asset Reporting Framework; the draft said it applies to 2026 and later calendar years | Draft legislative proposals |
| 2025-11-04 | Budget 2025 says CARF and the Common Reporting Standard will proceed with a deferred application date of January 1, 2027 | Budget 2025 tax measures |
| 2026-05-07 | Finance Canada announces Bill C-31, the second Budget 2025 implementation bill, which includes CARF | Finance Canada release |
| 2026-10-30 | Committee report with amendments presented in the House; no Royal Assent | LEGISinfo, Bill C-31 |
Two things follow from this table. First, the 2026 start in the original draft was replaced by the deferred 2027-01-01 date announced in Budget 2025. Second, because the bill was amended at committee, the final wording may differ from the August 2025 draft. Anything you read about CARF details should be checked against the law as finally passed.
See the full infographic with notes.
What platforms would report
Under the proposals, the reporting duty sits with crypto-asset service providers, not with you. A platform you use to buy, sell or exchange crypto would collect information about you and your transactions and file it with the CRA each year.
The draft legislation sets out who counts as a reporting provider and which details must be collected. Those definitions are technical, and they may change as the bill is amended, so we are not listing specific fields here.
- What it would change: the CRA would receive information directly from platforms rather than relying only on what you report.
- What it would not change: the tax rules themselves. Which transactions are taxable, and how, stays the same.
- What it would mean for DeFi users: whether a given decentralized service counts as a reporting provider depends on the final definitions. Don’t assume using DeFi keeps your activity out of view; blockchains are public, and the platforms where you move between dollars and crypto are the most likely reporters.
What isn’t confirmed yet
Some things you may read online are not confirmed on an official page as of 2026-10-30.
- The first reporting date. With the application date deferred to 2027-01-01, a first return would logically cover calendar 2027. But no official page we checked states the first reporting date under the deferred timeline, so we don’t publish one as fact.
- The final content of the law. Bill C-31 was amended at committee and has not passed.
- When CARF would start in practice. That depends on Royal Assent and on the in-force provisions of the final law.
LEGISinfo shows each stage of Bill C-31, including third reading in each chamber and Royal Assent. Finance Canada’s draft legislation page shows the original text.
Your tax obligations don’t wait for CARF
CARF is about reporting by platforms. Your own obligations under the Income Tax Act already apply. The CRA treats selling crypto, trading one crypto for another, using crypto to pay for goods or services, gifting it and gambling with it as dispositions. Rewards from mining or staking are listed among acquisitions.
Gains are either capital gains or business income, decided case by case. For capital gains, one-half is taxable; a proposed increase to that inclusion rate was cancelled on 2025-03-21. As of 2026-10-30, the CRA has published no DeFi-specific guidance on lending, liquidity pools or wrapping.
The CRA also expects records: the date, units, Canadian-dollar value and nature of each transaction, your wallet addresses, and yearly balances, kept for at least six years from the end of the last tax year they relate to.
If you have missed reporting in past years, the CRA’s Voluntary Disclosures Program offers case-by-case relief to taxpayers who come forward to correct errors or omissions.
How to get ready now
- Export your transaction history from every platform you have used, and keep exporting it regularly. The CRA recommends this in case a platform closes, stops serving Canada or you lose access.
- List every wallet address you control, and record which ones you use for what.
- Keep a running adjusted cost base for each crypto asset, using the average-cost method for identical properties.
- Note DeFi transactions carefully, since CRA has not addressed how many of them are treated.
- Talk to a qualified tax professional if your activity is frequent or complex.
Our record keeping guide and adjusted cost base guide go into the details.
Your checklist
Questions people ask
Is CARF law in Canada?
No, not as of 2026-10-30. CARF is part of Bill C-31, which had a committee report with amendments presented on 2026-10-30 and had not received Royal Assent. Budget 2025 set a deferred application date of January 1, 2027.
Will crypto platforms report my information to the CRA?
Under the proposed rules, yes. Reporting crypto-asset service providers would file annual information returns about users with the CRA. This is proposed, not yet law, and the final details depend on the bill as passed.
When is the first CARF reporting deadline?
It is not confirmed on an official page as of 2026-10-30. The August 2025 draft required returns before May 2 of each calendar year, and the application date was deferred to 2027-01-01, but no official page we checked states the first reporting date under the deferred timeline.
Do I need to report crypto if CARF hasn’t passed?
Yes. Your obligation to report dispositions and income from crypto applies now under the Income Tax Act. CARF would only add reporting by platforms; it does not create your obligation.
Sources and dates
- Legislative proposals — Crypto-Asset Reporting Framework (Part XXI) — Department of Finance Canadaproposed
Page date 2025-08-15 · checked 2026-10-30. Draft rules for crypto-asset service providers to file annual information returns about users. - Budget 2025 — Tax measures: supplementary information (CARF deferred) — Government of Canadaproposed
Page date 2025-11-04 · checked 2026-10-30. CARF and CRS to proceed with a deferred application date of January 1, 2027. - Minister introduces second Budget 2025 implementation bill (Bill C-31) — Department of Finance Canadaproposed
Page date 2026-05-07 · checked 2026-10-30. Bill C-31 includes CARF: crypto platforms to collect and share user information with tax authorities. - LEGISinfo — Bill C-31 (45th Parliament, 1st session) — Parliament of Canadaproposed
Page date 2026-10-30 · checked 2026-10-30. Committee report with amendments presented 2026-10-30; no Royal Assent as of that date. - Understanding crypto-assets and your tax obligations — Canada Revenue Agencyin force
No date shown on page · checked 2026-10-30. Defines crypto-assets; lists dispositions (sell, trade, barter, gift, gamble) and acquisitions including mining/staking rewards. - Reporting income from crypto-asset transactions — Canada Revenue Agencyin force
Page date 2025-12-02 · checked 2026-10-30. Business income vs capital gains is case by case; lists business indicators; crypto-to-crypto trades are dispositions; half of a capital gain is taxable. - Keeping books and records of crypto-assets for tax filing — Canada Revenue Agencyin force
Page date 2025-11-10 · checked 2026-10-30. What to record per transaction, wallet addresses, yearly balances; export platform history; keep records at least six years. - Prime Minister Carney cancels proposed capital gains tax increase — Prime Minister's Officein force
Page date 2025-03-21 · checked 2026-10-30. The proposed increase in the capital gains inclusion rate was cancelled; the one-half rate continues. - Special rules and other transactions — identical properties — Canada Revenue Agencyin force
Page date 2026-02-05 · checked 2026-10-30. Average-cost ACB for identical properties, recalculated on each purchase; dispositions don't change per-unit ACB (worked example ends at $20.63). - Voluntary Disclosures Program — Canada Revenue Agencyin force
Page date 2026-06-15 · checked 2026-10-30. Case-by-case relief for taxpayers who come forward to correct past errors or omissions.
Education only. Nothing on this page is financial, investment, tax or legal advice, or a recommendation to buy, sell, stake, lend or borrow any crypto-asset. Crypto-assets can lose some or all of their value and are not covered by CDIC. Canadian rules change: check the dated sources above and talk to a qualified professional about your situation. Full disclaimer.