Canada Flags High Crypto Tax Non-Compliance as CRA Audits Intensify

The Canada Revenue Agency (CRA) has uncovered widespread tax non-compliance among cryptocurrency users, revealing that roughly 40% of taxpayers using cryptoasset platforms are either evading taxes or are at high risk of failing to meet their reporting obligations. The findings, shared with the Canadian Press on December 7, highlight the growing challenges regulators face as crypto adoption accelerates.

According to the CRA, a team of 35 auditors is currently handling more than 230 crypto-related files. These audits have generated over $100 million in recovered taxes within the last three years, underscoring both the scale of unreported crypto income and the agency’s increasing focus on the sector. Despite these efforts, the CRA admits that current laws prevent it from reliably identifying many Canadian crypto users, complicating enforcement and compliance efforts.

One of the agency’s most high-profile actions has been its attempt to compel user data from Vancouver-based Dapper Labs. Authorities originally sought information on 18,000 of the platform’s top users amid concerns about potential tax evasion. After prolonged negotiations involving company executives, lawyers, and officials, the request was narrowed to 2,500 users. While Dapper Labs did not deny the investigation, it reportedly did not fully comply either. CoinDesk reached out to both the CRA and Dapper Labs for additional comments but had not received a response at the time of reporting.

In response to the regulatory gaps, Canada’s Department of Finance announced plans for new legislation by Spring 2026 aimed at strengthening enforcement against financial crimes. Finance Minister François-Philippe Champagne emphasized the urgency of updating Canada’s anti-fraud framework, highlighting initiatives such as a Federal Anti-Fraud Strategy and a new Financial Crimes Agency.

Meanwhile, FINTRAC continues cracking down on non-compliant crypto firms, recently issuing a $19.5 million fine to Seychelles-based Peken Global Ltd., operating as KuCoin, for failing to register as a foreign money services business in Canada.