The Canadian Revenue Agency (CRA) revealed that 40% of taxpayers using crypto-active platforms are evading crypto taxes or are at high risk of non-compliance, the Canadian Press reported on December 7.
The news outlet said it received an email statement from the CRA, which said it has 35 auditors in its cryptoasset program working on over 230 files, resulting in “significant taxes earned from auditing,” including $100 million in the past three years.
Acknowledging legal limitations in Canada, the CRA 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 drove 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 rules, the company was not fully held 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 saw the number whittled down 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 restrictions, the country’s Ministry of Finance announced at the end of October the introduction of new legislation by the spring of 2026.
“Fraud and financial crime are evolving rapidly, and so must our response,” François-Philippe Champagne, finance and tax minister, said on October 20 when he announced the new law. “Whether it’s launching a new federal anti-fraud strategy, establishing a dedicated financial crime agency to fight financial crime or tackling financial abuse, our government is committed to protecting the financial security of every Canadian.”
Meanwhile, Canada’s financial intelligence unit, FINTRAC, has been actively enforcing anti-money laundering laws, fining Seychelles-based crypto exchange Peken Global Ltd., operating as KuCoin, more than $19.5 million for failing to register as a foreign money services company in the country.
