The Canadian Revenue Agency (CRA) revealed that 40% of taxpayers who use cryptoasset platforms are evading crypto taxes or are at high risk of non-compliance, the Canadian Press reported December 7.
The news outlet said it received an emailed statement from CRA saying it has 35 auditors in its cryptoasset program, working on over 230 files, which have resulted in “significant taxes earned by audit,” including $100 million in the past three years.
The CRA acknowledged legal limitations in Canada, stating 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 over taxpayers using the Vancouver-based firm to evade taxes, but due to a lack of clear CRA regulations, the company was not fully held accountable, The Canadian Press said.
According to 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 reduced to only 2,500. CoinDesk contacted 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 in late October the introduction of new legislation by 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 it’s launching a new Federal Anti-Fraud Strategy, establishing a dedicated Financial Crimes Agency to combat financial crimes, or addressing economic abuse, our government is committed to safeguarding 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 business in the country.