The Canada Revenue Agency (CRA) has revealed that 40% of taxpayers who use crypto platforms are either avoiding crypto taxes or are at high risk of violating them, The Canadian Press reported on December 7.
The news organization received an emailed statement from the CRA, which said the company’s crypto asset program has 35 auditors working on more than 230 files, resulting in “significant tax proceeds from audits,” including $100 million over the past three years.
Acknowledging legal limitations in Canada, the CRA said it believes there is “no way to reliably identify taxpayers operating in the virtual currency space and assess compliance with income tax reporting obligations.” These challenges have prompted CRA efforts to force disclosures from platforms like Dapper Labs.
The Canadian government had expressed particular concern that taxpayers were using the Vancouver-based company to evade taxes, but the lack of clear CRA regulations meant the company could not be held fully accountable, the Canadian Press reported.
According to the Canadian Press, Dapper Labs didn’t deny the investigation, but it didn’t fully comply. Authorities sought information about Dapper’s top 18,000 users, but negotiations with company officials, lawyers and officials have whittled that number down to just 2,500. CoinDesk reached out to Dapper Labs and the CRA for comment, but did not immediately receive a response.
In view of the restrictions, the country’s Ministry of Finance announced in late October that new legislation would be introduced by spring 2026.
“Fraud and financial crime are rapidly evolving, and so is our response,” Francois-Philippe Champagne, Minister of Finance and Taxation, said on October 20, when announcing the new law. “From launching a new federal anti-fraud strategy to establishing a dedicated Financial Crimes Agency to combat financial crime to combating economic abuse, our government is committed to protecting the financial security of all Canadians.”
Meanwhile, Canada’s financial intelligence agency FINTRAC is actively enforcing anti-money laundering laws and has fined Peken Global Ltd., a Seychelles-based cryptocurrency exchange operating as KuCoin, more than $19.5 million for failing to register as a foreign money services operator in the country.
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