Canadian federal court orders crypto exchange to share client data with CRA

Tuesday, 30 March 2021
The Federal Court of Canada has ruled that crypto exchange Coinsquare must provide the Canada Revenue Agency (CRA) with account data on its largest Canadian clients’ trading activity (Minister of National Revenue v Coinsquare Ltd (T-1114-20)).
Crypto chain

On March 19, the court ordered that Coinsquare must provide the CRA with detailed information, including customer bank accounts, transactions, cryptocurrency types, trading activity, “know your customer” documentation and addresses.

Customers affected are those who have had accounts valued at CAD20,000 or more on December 31 for the years from 2014 to 2020, as well as the 16,500 largest traders on the platform in the same time period. Coinsquare estimates that the ruling will apply to between 5 and 10 percent of its 400,000 customers.

Although the exchange is being compelled to provide information, it has nonetheless called the ruling a “partial but significant victory,” as the CRA had initially applied to be granted access to all customer records since 2013.

Coinsquare must comply with the order by April 6. Stacey Hoisak, Coinsquare’s CEO and General Counsel, has warned that the agreement with the CRA is likely to set a precedent for the agency to make similar requests of other crypto exchanges.

Sources

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