Viewing Vault Wallet Addresses and Tax Considerations for Vault Activity

You can view certain non-custodial wallet addresses associated with your vault accounts in the Krak app.

To access them:

1. Open the Krak app.

2. Go to Account.

3. Select the % Earn link.

4. Review the list of non-custodial wallets associated with your vault accounts.

These wallet addresses are provided to help you review on-chain activity associated with your vault accounts for informational, recordkeeping, and tax reporting support purposes.

Vault wallet addresses are shown so you can identify and review public blockchain activity associated with your vault accounts.

You may use these addresses to view activity on a compatible blockchain explorer or add the addresses to a third-party tax aggregator that supports the relevant blockchain network.

No. The wallet addresses shown through the % Earn link are provided for informational, recordkeeping, and tax reporting support purposes only.

You should not use these addresses to send, receive, deposit, or withdraw crypto. Sending crypto to these addresses, or attempting to use them for transfers, may result in loss of funds or unsupported activity.

Yes. You can copy the wallet address and search for it on a compatible blockchain explorer for the relevant network.

A blockchain explorer may show public on-chain activity for that address, including transaction history, token movements, timestamps, and publicly available balances.

Yes. You may be able to add the wallet address to a third-party tax aggregator that supports the relevant blockchain network.

This may help the tax aggregator identify on-chain activity associated with that address and assist with preparing your tax records. You should confirm that the tax aggregator supports the relevant asset, network, and transaction types before adding the address.

Not necessarily. Blockchain explorers and third-party tax aggregators generally rely on publicly available on-chain data. They may not reflect all information needed for tax reporting, including off-chain activity, fiat transactions, transfers between accounts, cost basis, fees, rewards, income classifications, or other adjustments that may be relevant to your tax position.

You should review all available records and consult a qualified tax adviser if you have questions about your specific tax reporting obligations.

Yes. Vault activity may involve wrapping or unwrapping tokens as part of the vault process.

For example, the Bitcoin Vault support article explains that when BTC is allocated to the vault, it is wrapped to kBTC and sent to an embedded wallet on the Ink network. When BTC is returned to your Kraken account, kBTC is unwrapped back into BTC.

The tax treatment of wrapping and unwrapping transactions may vary depending on your jurisdiction and personal circumstances. You should speak with a qualified tax adviser to determine whether any wrapping, unwrapping, vault allocation, vault deallocation, or related on-chain activity has tax consequences for you.

At this time, wrapping and unwrapping transactions associated with vault activity are not subject to reporting on Form 1099-DA by Kraken.

You are responsible for reviewing your vault activity and determining whether wrapping, unwrapping, allocation, deallocation, or related on-chain activity needs to be reported on your tax return.

At this time, Kraken will not include staking rewards or other vault income from vault activity on Form 1099-MISC where those rewards or income are not paid by a Kraken entity.

You are responsible for reviewing your vault activity, including any staking rewards, vault income, or other rewards reflected on-chain or through other available records, and determining whether those amounts are taxable in your jurisdiction. You may need to self-report staking rewards, vault income, and any related tax obligations.

At this time, vault income will not be included as staking reward income in the Kraken Tax Center given the income is not paid by a Kraken entity.

You should review your vault activity, blockchain records, and any third-party tax aggregator outputs to determine whether vault income needs to be reported for tax purposes.

For CARF reporting, Kraken expects to report wrapping and unwrapping activity that occurs on Kraken or through a Kraken exchange account, where such activity is within scope of Kraken’s CARF reporting obligations. For more information on wrapping and unwrapping transactions, review the article here.

However, vault activity associated with non-custodial vault wallets, including on-chain activity occurring outside the exchange environment, will not be reported under CARF by Kraken at this time where the activity is not reportable by a Kraken entity. Kraken may, however, be required to report this activity in the future and will report where required to by law.

This means CARF reporting may include exchange-level wrapping or unwrapping activity, but may not include separate on-chain vault activity, staking rewards, vault income, or other activity associated with non-custodial vault wallets.

You are responsible for reviewing your vault activity and determining whether you have any tax reporting obligations in your jurisdiction. You should consult a qualified tax adviser if you have questions about how CARF reporting, wrapping or unwrapping activity, staking rewards, vault income, or other vault-related activity may apply to your tax situation.

A wallet address may help you identify on-chain activity, but it may not be sufficient by itself to complete your tax return.

Depending on your circumstances, you may also need transaction history, cost basis information, fair market values, income records, transfer records, staking reward records, vault income records, and other supporting documentation.

No. Vault wallet address information is intended to support your review of on-chain activity. It does not replace any tax forms, account statements, transaction history, or other records that may be available from Kraken.

You should retain all relevant records for your tax reporting and recordkeeping purposes.

Confirm that you selected the correct blockchain network and that the tax aggregator supports that network and asset.

Some tax tools may not support all networks, tokens, smart contract activity, staking rewards, vault income, or vault-related transactions. If the address is not recognized, you may need to manually upload or enter transaction information, depending on the tax tool’s capabilities.

Blockchain addresses and related on-chain activity are publicly visible. Sharing a wallet address with a third-party tax aggregator may allow that provider to view and analyze public activity associated with the address.

You should review the third party’s privacy policy, terms of service, and security practices before sharing wallet address information.

No, not unless a separate integration or authorization process applies.

For clients who choose to share this information with a third-party tax aggregator, we are working with a number of third-party tax aggregators to help provide supporting information more efficiently.

As a reminder, if you choose to add a wallet address to a third-party tax aggregator, you are responsible for providing that address directly to the provider and reviewing how that provider uses the information.

You should consider retaining copies of relevant account statements, transaction histories, tax forms, blockchain explorer records, third-party tax reports, staking reward records, vault income records, and any other documentation used to prepare your tax return.

Recordkeeping requirements may vary depending on your jurisdiction and personal circumstances.

No. Kraken does not provide tax, legal, or accounting advice. Any information made available through the Krak app, blockchain explorers, the Kraken Tax Center, or third-party tax tools is provided for informational purposes only and may not be complete for your individual tax situation.

You are responsible for determining your own tax reporting obligations.

For questions about your personal tax obligations, you should consult a qualified tax adviser. Kraken cannot determine how transactions should be reported on your tax return or whether a specific transaction is taxable in your jurisdiction.