The Canada Revenue Agency (CRA) has intensified its efforts to crack down on cryptocurrency tax evasion, targeting 2,500 users of Vancouver-based NFT company Dapper Labs. The investigation relates to suspected unpaid taxes amounting to an estimated 72 million Canadian dollars (US$54 million). This move is part of a larger campaign by the CRA, which has already generated more than C$100 million in collected taxes through crypto audits over the past three years.
According to a report by The Canadian Press, despite the growing sums at stake, authorities confirm that no criminal charges have been filed in any crypto tax case since 2020. This highlights the gap between civil enforcement and criminal prosecution in Canada’s digital assets sector. The CRA’s efforts to enforce tax compliance in the crypto space are ongoing, with a focus on ensuring that users of digital assets are meeting their tax obligations.
CRA Secures Rare “Unnamed Individuals” Contract in Dapper Labs Tax Investigation
The report said the CRA sought and received approval in September to force Dapper Labs to disclose information related to thousands of users under a so-called “unnamed person requirement.” This legal instrument allows tax authorities to obtain records on an identifiable group of taxpayers without accusing the company itself of wrongdoing. Dapper, which operates one of the best-known non-fungible token platforms and operates its own blockchain and digital wallets, did not reject the application.
The CRA initially sought information on about 18,000 Dapper users, but after negotiations, the scope was narrowed to 2,500 accounts. This is only the second time Canadian courts have issued such an order against a domestic crypto company, the first being against Coinsquare in 2020. In an affidavit supporting the application, CRA project manager Predrag Mizdrak said crypto markets are deeply rooted in the underground economy and pose “significant risks of non-compliance.”
Canada Prepares New Crypto Reporting Rules as Federal Crackdown Mounts
Internal regulatory figures show that about 15% of Canadian crypto users do not file their taxes on time or at all, while 30% of those who do are considered high risk for non-compliance. The agency estimates that up to 40% of taxpayers using crypto platforms fall into the “non-filing” or “high risk” categories. The CRA currently employs 35 dedicated cryptoasset examiners who process more than 230 files. Five criminal investigations related to digital assets have been launched since 2020, four of which were still ongoing as of March.
The crackdown on Dapper users comes as Canada tightens its broader crypto oversight. Under long-standing CRA policy, cryptocurrencies are treated as commodities, not currencies. Casual investors are generally subject to capital gains tax, with only 50% of profits taxed at marginal rates, while heavy traders, miners, and crypto businesses are taxed at full business income. Most crypto transactions, including sales, swaps, and crypto-based purchases, are treated as taxable dispositions under existing rules.
New reporting rules are also on the way as Canada prepares to introduce the OECD-backed Crypto-Asset Reporting Framework starting in 2026. The framework will require exchanges, brokers, and crypto ATM operators to report transaction data and customer information directly to the CRA. The 2024 federal budget includes more than C$50 million over five years to support these efforts. At the same time, Ottawa plans to create a national financial crimes agency by 2026 to focus on sophisticated money laundering and online financial fraud.
Treasury officials describe it as the country’s first unit focused exclusively on sophisticated financial crimes. Beyond taxes, enforcement in the area of anti-money laundering has been stepped up. FINTRAC recently imposed a record C$19.6 million fine on KuCoin for failing to register and report large transactions. Meanwhile, another company, Xeltox Enterprises, was hit with penalties totaling nearly 177 million Canadian dollars.
In September, the Royal Canadian Mounted Police shut down TradeOgre and seized assets worth more than 56 million Canadian dollars, marking the first complete shutdown of a crypto exchange in Canada. For more information on Canada’s crypto tax crackdown, visit https://cryptonews.com/news/canada-crypto-tax-crackdown-dapper-labs-2500-users-72m/
