Canada targets Dapper Labs users in second-ever crypto tax probe as enforcement gap widens: report
Canada's CRA is targeting Dapper Labs users in a new tax probe amidst wider enforcement challenges despite collecting over $100M CAD from crypto audits.Summary
Canada's tax authority (CRA) has collected over $100 million CAD from crypto audits in three years, but faces structural limitations, having filed no criminal charges since 2020. The CRA's 35-person crypto team estimates 40% of crypto users are non-compliant, yet the top auditor admitted difficulty in reliably identifying and assessing taxpayers in the crypto space. In its second-ever such action against a crypto firm, the CRA obtained a court order for data on 2,500 Dapper Labs users, down from an initial request for 18,000. While monetary collection is up, criminal enforcement is slow due to case complexity, limited evidence, and cross-border issues. Meanwhile, FINTRAC has been active in imposing large fines on exchanges like Cryptomus and KuCoin for AML violations, as Canada prepares to launch a dedicated financial crimes agency by 2026.
(Source：The Block)