According to Odaily, the Canada Revenue Agency (CRA) stated that approximately 40% of taxpayers using crypto platforms are involved in tax evasion or high-risk non-compliance activities. In an emailed statement, the CRA said its crypto asset audit team, consisting of 35 auditors, is handling over 230 related cases and has "recovered over $100 million in taxes" through audits over the past three years.
The CRA acknowledged that current Canadian law has significant limitations in identifying crypto asset users, and that regulators "cannot reliably identify crypto users and assess their tax compliance." Therefore, the CRA repeatedly attempted to request platforms to disclose user data, including requesting data on Dapper Labs' top 18,000 users, but ultimately only obtained information on 2,500 users after negotiations between lawyers and officials.
In October, the Canadian Department of Finance announced new legislation to close regulatory loopholes, to be introduced in the spring of 2026. Finance Minister François-Philippe Champagne stated that the government will establish a dedicated financial crime agency to combat rapidly evolving fraud and financial crime.
Meanwhile, the Financial Intelligence Centre of Canada (FINTRAC) continues to strengthen its anti-money laundering enforcement, recently fining KuCoin's operating entity, Peken Global, over CAD 19.5 million for reasons including failing to register as a foreign money services company as required. (CoinDesk)
