The Canadian Revenue Agency (CRA) revealed that 40% of taxpayers using crypto asset platforms are evading cryptocurrency taxes or are at high risk of non-compliance, the Canadian Press reported on December 7.
The media outlet said it received an email statement from the CRA saying it has 35 auditors in its cryptoasset program, working on more than 230 files, which has resulted in “significant taxes obtained per audit,” including $100 million over the past three years.
The CRA acknowledged the legal limitations in Canada and stated that it believes “there is no way to reliably identify taxpayers operating in the crypto space and assess compliance” with income tax reporting obligations. These challenges fueled the CRA’s efforts to compel disclosures from platforms like Dapper Labs.
The government had expressed particular concern about taxpayers using the Vancouver-based company to evade taxes, but due to a lack of clear CRA regulations, the company was not held fully accountable, The Canadian Press said.
According to the Canadian Press, Dapper Labs did not deny the investigation, although it did not fully comply either; Authorities sought information on Dapper’s top 18,000 users, but negotiations between company officials, lawyers and officials reduced the number to just 2,500. CoinDesk reached out to Dapper Labs and the CRA for comment, but no response was immediately received.
In light of the limitations, the country’s Department of Finance announced at the end of October the introduction of new legislation for spring 2026.
“Fraud and financial crime are evolving rapidly, and so must our response,” François-Philippe Champagne, Minister of Finance and National Revenue, said on October 20 when announcing the new law. “Whether launching a new Federal Anti-Fraud Strategy, establishing a Financial Crimes Agency dedicated to combating financial crime or addressing economic abuse, our government is committed to safeguarding the financial security of all Canadians.”
Meanwhile, Canada’s financial intelligence unit FINTRAC has been actively enforcing anti-money laundering laws, fining Seychelles-based crypto exchange Peken Global Ltd., trading as KuCoin, more than $19.5 million for failing to register as a foreign money services business in the country.
