Canada’s tax crackdown on crypto continues to widen, with the Canada Revenue Agency (CRA) now targeting 2,500 users of Dapper Labs in a probe linked to an estimated C$72 million in suspected unpaid taxes. Despite the size and scope of this investigation—one of the largest of its kind in the country—no criminal charges have been laid in any crypto tax case since 2020.
The campaign reflects a growing push by federal authorities to bring order to Canada’s digital asset space, where a significant number of users are believed to be out of compliance with tax rules.
Target
The CRA’s latest move focuses on Dapper Labs, a Vancouver-based NFT and blockchain company best known for NBA Top Shot and its Flow blockchain. In September, the CRA secured a rare “unnamed persons requirement”—a legal order that compels Dapper to turn over user data without alleging the company itself did anything wrong.
The CRA originally sought information on 18,000 users, but after negotiations, the number was reduced to 2,500. Dapper did not oppose the order, and the court-approved request is only the second time in Canada’s history that such a legal tool has been used against a domestic crypto firm—the first being Coinsquare in 2020.
This strategy allows the CRA to investigate groups of taxpayers using crypto platforms without launching criminal proceedings against the companies themselves.
Audits
The CRA has a dedicated team of 35 cryptoasset auditors who are currently working on more than 230 files. Since 2020, crypto-related audits have resulted in over C$100 million in tax assessments.
But the agency admits enforcement has its limits. While audits are civil proceedings aimed at recovering taxes and penalties, criminal prosecutions remain rare. Only five criminal crypto cases have been launched since 2020, and none have led to charges yet. Four remain under investigation.
Why the gap? According to CRA officials, crypto tax cases are highly complex, often involving cross-border evidence, anonymous wallets, and decentralized platforms. These challenges make criminal charges hard to pursue, even when evasion is suspected.
Risk
Internal CRA data paints a concerning picture of compliance in the crypto sector:
| Compliance Risk Level | Estimated Share of Users |
|---|---|
| Do not file taxes at all | 15% |
| High risk among filers | 30% |
| Total non-compliance risk | 40% |
That means nearly half of all crypto users in Canada are either not filing their taxes or are likely to be underreporting their income. The agency sees crypto as a growing part of the underground economy, which fuels its aggressive audit push.
Rules
Under current CRA policy, cryptocurrencies are classified as commodities, not legal tender. This means that any sale, trade, or use of crypto (including purchases) is considered a taxable event.
Here’s how the tax treatment generally works:
| Type of Activity | Tax Treatment |
|---|---|
| Casual investing | Capital gains (50% taxable) |
| Frequent trading | Business income (100% taxable) |
| Mining or staking | Business income |
| Crypto purchases or swaps | Taxable disposition |
While many casual investors assume crypto is off the radar, every taxable event—whether it’s a gain, trade, or purchase—is supposed to be reported. And if you’re making regular trades, you’re taxed like a business.
Future
To improve oversight, the federal government is rolling out a range of new crypto rules. In 2026, Canada will adopt the OECD’s Crypto-Asset Reporting Framework (CARF). This global system will require crypto exchanges, brokers, and ATM operators to report transaction data and customer info directly to the CRA.
To support this effort, the 2024 federal budget allocated C$50 million over five years to implement CARF and enhance compliance efforts.
In parallel, Canada is preparing to launch its first national financial crimes agency, also by 2026. This new body will focus exclusively on financial crimes, including online fraud and crypto-linked money laundering.
Enforcement
Enforcement isn’t just focused on taxes. Canada’s financial watchdog, FINTRAC, is cracking down on anti-money laundering violations:
- KuCoin, a Seychelles-based exchange, was fined C$19.6 million for failing to register and report transactions.
- Xeltox Enterprises received C$177 million in penalties.
- In a historic move, the RCMP shut down TradeOgre, seizing C$56 million in assets, marking the first crypto exchange takedown in Canadian history.
These efforts send a clear message: crypto activity in Canada is no longer operating in a grey zone. Whether it’s unreported income, money laundering, or unregistered operations, the federal government is tightening the screws.
Outlook
While no charges have been laid in Dapper’s case, the CRA’s ability to compel user data sets a precedent. With more tools and funding on the way, enforcement is likely to become both faster and more aggressive in the next few years.
If you’re a Canadian crypto user—especially one using domestic platforms—now is the time to review your tax filings, get compliant, and stay ahead of regulatory changes.
FAQs
How many Dapper Labs users are targeted?
2,500 users are part of the CRA’s crypto tax investigation.
Has anyone been charged in a crypto tax case?
No criminal charges have been laid in any case since 2020.
What is an ‘unnamed persons requirement’?
It lets the CRA request user data without accusing the company.
When will Canada adopt new crypto rules?
New OECD reporting rules start in 2026.
What triggers crypto taxes in Canada?
Sales, swaps, purchases—any transaction is a taxable event.
