According to Odaily, the Canada Revenue Agency (CRA) is launching its second-ever search for cryptocurrency tax information on Dapper Labs users. Court documents show that the CRA has obtained data on 2,500 users through a court order. The original plan was to obtain information on the first 18,000 users, but this was ultimately reduced after consultation with Dapper's management and lawyers.
Over the past three years, the CRA has collected over $100 million in taxes through crypto-related audits, but has not filed any criminal charges since 2020. The CRA's 35-person crypto audit team has handled over 230 cases, estimating that approximately 40% of taxpayers using crypto platforms have unreported or high-risk non-compliance records. However, the CRA's top crypto auditor acknowledged in an affidavit that the agency "has been unable to reliably identify crypto asset users and assess their tax compliance."
This action marks the second time a Canadian court has issued a similar order to a crypto company, following a 2020 court order requiring Toronto-based exchange Coinsquare to provide user information. Dapper Labs has not yet responded to The Block's request for comment.
Despite progress in tax collection, the CRA faces significant challenges in enforcement. Since 2020, the CRA has initiated five criminal investigations involving digital assets, four of which are ongoing but have not yet resulted in charges, citing reasons such as the complexity of cross-border activities, limited evidence, and reliance on international cooperation. The agency states that such investigations typically take years.
Meanwhile, Canada is pushing forward with stablecoin legislation and plans to launch a new agency specifically to combat financial crime by spring 2026. Another regulatory body, FINTRAC, has been more active recently, issuing multiple anti-money laundering and sanctions fines to Cryptomous, KuCoin, and Binance for violations. (The Block)
