Canada: Consultation on cryptoasset reporting framework (CARF) and CRS amendments
The consultation will remain open until September 12, 2025.
The Ministry of Finance and Canada Revenue Agency (CRA) on August 15, 2025, issued a public consultation on draft legislative proposals to implement the OECD’s cryptoasset reporting framework (CARF), along with related amendments to the common reporting standards (CRS).
Under the CARF, a new annual reporting obligation will be introduced into the Canadian Income Tax Act. This requirement will apply to cryptoasset service providers (CASPs), including entities and individuals who either reside in Canada or carry on business within the country and facilitate cryptoasset exchange transactions.
Aligned with the CARF, the amended CRS would introduce several changes to the domestic framework, including the following:
- Expanding the scope of the CRS to cover central bank digital currencies and specified electronic money products, such as digital representations of fiat currencies, which are not reportable under the CARF
- Aiming to reduce duplication in reporting between the CARF and the CRS by ensuring effective coordination between the two frameworks
- Enhancing reporting requirements for financial accounts and account holders
- Strengthening due diligence obligations for reporting financial institutions
The consultation will remain open until September 12, 2025.
Read a September 2025 report prepared by the KPMG member firm in Canada