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Tax Considerations: What to Know About Taxes with Krak Card
Last updated: Nov 18, 2025
Disclaimer: The information provided below is for general educational purposes only and does not constitute tax, legal, or accounting advice. Tax treatment of cryptocurrency transactions varies by jurisdiction and may change over time. You should consult a qualified tax advisor or accountant for guidance tailored to your personal circumstances.
Rewards earned through the Krak Card are generally not considered taxable income.
Yes, in most jurisdictions, spending cryptocurrency (including through a crypto-linked credit or debit card) is treated as a disposal of an asset for tax purposes.
If the market value of your cryptocurrency at the time of purchase is higher than when you acquired it, you may have a capital gain. If it is lower, you may have a capital loss.
Example:
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You bought 0.01 BTC for USD $300.
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You use .01 BTC for a USD $400 purchase.
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Your capital gain is USD $100 (subject to applicable capital gains tax rules).
The taxable amount is generally the difference between the cost basis (what you originally paid for the crypto) and its fair market value at the time you spent it.
You will need to record:
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Acquisition date and purchase price (cost basis)
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Transaction date and market value in your local currency
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Resulting gain or loss
Please see our articles on taxes for additional information on your particular jurisdiction. There are tax calculators, such as Koinly and CoinTracker, that simplify this record keeping and calculation process.
Most tax authorities require detailed transaction records for each taxable event. You should retain:
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Date you acquired the cryptocurrency
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Date you spent the cryptocurrency
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Amount in crypto and equivalent fiat value at both points
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Transaction fees paid
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Documentation showing how the market value was determined (e.g., exchange rate source)
Some jurisdictions require records to be kept for 5–7 years or longer. As noted above, crypto tax calculators, such as Koinly and CoinTracker will simplify this recordkeeping. The recordkeeping requirements vary significantly depending upon your jurisdiction. In the United States, for example, there must be wallet tracing in place to demonstrate the particular cryptocurrency bought was also the one disposed of after tracing any wallet activity and deposits/withdrawals.
In many countries, transaction fees reduce your gain or increase your loss.
For example:
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Purchase price: USD $300
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Value at time of sale: USD $400
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Network fee: USD $5
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Gain = $400 – $300 – $5 = $95
Note that transaction fees for the initial acquisition in some cases may be allocated to become part of the basis of the crypto disposed of in the purchase depending on your jurisdiction, which would reduce your gain or increase your loss on the purchase.
Local rules vary, so verify with a tax professional.
Yes, but only in some jurisdictions. Even if you use a stablecoin pegged to your local currency (e.g., USDC, USDT), spending it may still be considered a disposal for tax purposes.
This means gains/losses can occur if you acquired the stablecoin at a different exchange rate than at the time of spending.
The reporting rules vary significantly depending on your jurisdiction and the requirements for gain or loss reporting. In many cases, this is dramatically simplified by use of a crypto tax calculator.In most cases, yes. Each time you spend crypto, it may be reportable.
At this time, there are no rewards tied to Krak Card transactions.
If in the future your card offers rewards in crypto:
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At the time you receive the reward: In some countries, this may be considered taxable income based on the crypto’s fair market value. In some countries, the reward may not be taxable until disposed of subsequently to receiving the reward. If the reward is more in the nature of a fee reduction towards a good or service, some countries may treat it similar to a reduction in price as opposed to taxable income.
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When you later spend or sell that crypto: You may incur a capital gain or loss.
Example:
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You receive $10 worth of ETH as a reward (income).
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ETH rises in value to $15 when you spend it — you have a $5 capital gain in addition to the original $10 income.
We provide Transaction history in monthly statements. However, we do not file taxes on your behalf and are not responsible for determining your tax liability. Crypto tax calculators are available to assist.