Sending digital assets including BTC, ETH, and supported non-CBDC stablecoins (e.g., USDG, USDC, PYUSD, EURC, EURT, etc.) is generally treated as a taxable disposal unless it is a transfer to another account or wallet of the same user. Generally, non-CBDC stablecoins are treated as crypto, not fiat, even if pegged to a fiat currency.

You should therefore track the following concerning any crypto that is transferred:

• Acquisition price, including any fees

• Acquisition date

• FMV at the time of sending

• Resulting gain/loss

• Gift tax thresholds

Note: Crypto tax aggregation services such Koinly.io or Cointracker.io may be able to assist you in tracking your crypto transfers and support you with the related tax calculations. For more information concerning connecting your account to a Crypto tax aggregation service, see Tax API FAQs.

Domestic Fiat Transfers: Sending the domestic fiat currency (domestic or cross-border) is generally not taxable if the sender is sending their domestic currency, however the user may need to consider:

• Gift tax thresholds

• Cross-border FX documentation

Foreign Fiat Transfers: Sending a foreign currency, with respect to the sender, is generally treated as a taxable disposal subject to tax on the difference between the acquisition price in the domestic currency and the value at disposal. If sending a foreign fiat currency a user should track and consider:

• Acquisition price, including any fees

• Acquisition date

• FMV at the time of sending

• Resulting gain/loss

• Cross-border FX documentation

• Gift tax thresholds

Receiving crypto or stablecoins is generally taxable if it represents income. Generally you will not owe any tax if you are receiving:

• A personal gift

• A reimbursement

• A return of funds

• A purely personal transfer from friends or family

• A self-transfer from your own account or wallet

You may have taxable income if you receive crypto as a payment:

• Compensation for services

• Business revenue or sales

• Payment from a merchant/contract

• Rewards, incentives, or yields

• A promotion, bonus, or referral rewards

• Anything tied to economic activity

Note: these are prohibited uses of Krak, unless you are merchant in Krak’s Merchant Payment Processing Program.

Although, the receipt of the Crypto (including Non-CBDC stablecoins) and foreign currencies may not be taxable, subsequent dispositions may be taxable, and users will therefore need to track:

• Value at the time of receipt, including any fees

• Date of receipt

• If not a personal transfer, reason for receiving the crypto

Note: Crypto tax aggregation services such Koinly.io or Cointracker.io may be able to assist you in tracking your transfers and support you with the related tax calculations. For more information concerning connecting your account to a Crypto tax aggregation service, see Tax API FAQs.

Self-transfers are generally not dispositions and thus may not be reportable.

Yes, if the merchant is part of Krak’s Merchant Payment Program. Otherwise, Krak should only be used to send payments to friends and family.

Kraken supports the tax reporting requirements to Merchants in the Krak Merchant Payment Processing Program.

Yes, if the merchant is part of Krak’s Merchant Payment Program. Otherwise, Krak should only be used to send payments to friends and family.

Kraken supports the tax reporting requirements to Merchants in the Krak Merchant Payment Processing Program.

1099-DA Overview

Beginning in 2025, with the new U.S. broker reporting rules:

• U.S. clients may receive a Form 1099-DA for reportable digital asset disposals, including sending crypto or non-CBDC stablecoins if treated as a disposal.

• The Form 1099-DA will include the following information:

  • Digital asset sent

  • Gross proceeds (fair market value of the amount sent in $USD)

  • Date sent

• In addition, where required, the following information may also be reported:

  • Date acquired

  • Cost basis

  • Gain/loss

CARF is a new tax reporting framework for reporting crypto transactions. CARF will standardize reporting across more than 100+ jurisdictions with the EU (DAC 8) and the UK adopting CARF for 2026.

Under CARF, Kraken may be required to report:

• Transfers of Crypto, including identification of transaction type (send/receive)

• Amount of crypto transferred (received and sent)

• Aggregated fair market value of transfers (received and sent) by type of crypto

• Name, address and tax identification number of the accountholder

For more information concerning CARF, please see these FAQs.

CESOP is an EU system collecting cross-border payment information. For our clients in the EU, fiat account balances are held at an E-money Institution. E-Money Institutions as payment service providers, are required to report certain cross-border transfers of fiat that have originated from an EU jurisdiction. Users receiving more than 25 cross-border payments from the EU in a calendar quarter may be subject to reporting under CESOP.

Under Instrução Normativa RFB 1.888/2019, crypto exchanges must report all qualifying crypto transactions, including P2P transfers, when they involve Brazilian tax residents and when reporting thresholds or conditions are met.

For more information concerning 1.888/2019 reporting see these FAQs.