The Canadian Press reported on December 7 that the Canada Revenue Agency (CRA) revealed that 40% of taxpayers using cryptoasset platforms are avoiding crypto taxes or are at high risk of non-compliance.
The news outlet said it received an email statement from the CRA saying its cryptoasset program has 35 auditors working on more than 230 files, resulting in “significant tax missed audits,” including $100 million over the past three years.
The CRA acknowledged legal limitations in Canada, saying it believes there is “no way to reliably identify taxpayers operating in the crypto sector and assess their compliance with income tax reporting obligations”. These challenges thwarted the CRA’s efforts to compel disclosures from platforms like Dapper Labs.
The Canadian Press said the government had expressed particular concern over taxpayers using the Vancouver-based firm to avoid taxes, but due to a lack of clear CRA rules, the company was not held fully accountable.
According to The Canadian Press, Dapper Labs did not deny the investigation, although it also did not fully comply; Officials sought information about Dapper’s top 18,000 users, but negotiations between company executives, lawyers and executives whittled that number down to just 2,500. CoinDesk reached out to Dapper Labs and CRA for comment but did not immediately receive a response.
In light of the limits, the country’s Finance Department announced in late October that new legislation would be introduced by spring 2026.
“Fraud and financial crime are rapidly evolving, and our response must follow suit,” Finance and National Revenue Minister François-Philippe Champagne said when announcing the new law on Oct. 20. “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 protecting the financial security of every Canadian.”
Meanwhile, Canada’s financial intelligence arm, FINTRAC, which is actively enforcing anti-money laundering laws, has fined Seychelles-based crypto exchange Pekan Global Ltd., operating as KuCoin, more than $19.5 million for failing to register as a foreign money services business in the country.