The Canadian Revenue Agency (CRA) disclosed that 40% of taxpayers utilizing cryptoasset platforms are either evading crypto taxes or are at a heightened risk of non-compliance, as reported by the Canadian Press on December 7.
The news organization indicated it received a statement from the CRA, which mentioned that there are 35 auditors assigned to its cryptoasset program, managing over 230 cases. This has led to “significant taxes collected through audits,” including $100 million over the last three years.
The CRA acknowledged the legal challenges in Canada, asserting that it believes “there is no reliable method to identify taxpayers involved in the crypto sector and assess adherence” to income tax reporting requirements. These difficulties prompted the CRA’s initiatives to demand disclosures from platforms such as Dapper Labs.
The government has notably expressed concerns regarding taxpayers employing the Vancouver-based firm to avoid taxes, but the absence of clear CRA regulations meant the company could not be fully held accountable, according to the Canadian Press.
As reported by the Canadian Press, Dapper Labs did not reject the investigation, although it also did not fully comply; authorities aimed to gather information on Dapper’s leading 18,000 users, but after discussions among company representatives, lawyers, and officials, this number was reduced to just 2,500. CoinDesk reached out to both Dapper Labs and the CRA for comments but did not receive an immediate response.
In response to these limitations, the nation’s Department of Finance announced in late October plans to introduce new legislation by Spring 2026.
“Fraud and financial crime are evolving swiftly, and our response must also adapt,” François-Philippe Champagne, Minister of Finance and National Revenue, stated on October 20 while unveiling the new law. “Whether through the launch of a Federal Anti-Fraud Strategy, the establishment of a dedicated Financial Crimes Agency to tackle financial offenses, or addressing economic abuse, our government is committed to ensuring the financial security of all Canadians.”
Meanwhile, Canada’s financial intelligence unit, FINTRAC, has been enforcing anti-money laundering regulations, imposing a fine of over $19.5 million on Seychelles-based crypto exchange Peken Global Ltd., operating as KuCoin, for failing to register as a foreign money services business within the country.
