Canada’s tax authority is ramping up efforts to enforce crypto tax compliance — but so far, there’s been a noticeable gap between how much has been recovered and how many people have faced criminal penalties. Despite recovering over C$100 million in unpaid taxes from crypto audits, the CRA hasn’t filed a single criminal charge since 2020.
Audits
The Canada Revenue Agency (CRA) has a special 35-person audit team dedicated to reviewing cryptocurrency-related tax activity. Over the last few years, they’ve investigated more than 230 cases and uncovered more than C$100 million (about AU$109 million) in unpaid taxes.
But while the audits have recovered significant funds, the CRA estimates that around 40% of Canadians using digital asset platforms either haven’t filed their crypto taxes at all or are at serious risk of non-compliance.
Limits
Why no charges? The CRA says the challenge lies in the very nature of crypto itself.
In a recent Federal Court filing, the agency stated that there is “no way to reliably identify taxpayers operating in the crypto space and assess compliance.” The lack of transparency, cross-border movement of funds, and anonymity of transactions make it incredibly difficult for investigators to gather solid evidence.
That’s why criminal cases have been few and far between. Since 2020, only five criminal investigations related to crypto taxes have been launched — and four are still ongoing with no charges laid.
Court Orders
To fill the gap, the CRA is increasingly turning to legal tools like court orders to get data from crypto platforms. The latest example involves Vancouver-based Dapper Labs — the company behind blockchain collectibles like NBA Top Shot and CryptoKitties.
In 2024, the CRA successfully secured a Federal Court order that required Dapper Labs to hand over user data for 2,500 accounts. Initially, the agency wanted information on 18,000 users but settled for a smaller group after talks with company lawyers.
This is just the second time the CRA has used the courts in this way. The first was in 2020, when it obtained a similar order against Toronto-based Coinsquare.
Enforcement Gap
So, what’s the holdup when it comes to criminal charges?
The CRA blames the complexity of these investigations. Building a strong case often requires evidence that spans countries, involves multiple exchanges, and depends on international cooperation. In other words, it’s not easy to prove intent or wrongdoing beyond a reasonable doubt — even when non-compliance is obvious.
And because of these challenges, the agency has focused more on audits and reassessments rather than courtroom battles.
New Agency
That may soon change. The federal government is planning a new financial crimes agency designed specifically to tackle issues like crypto tax evasion, money laundering, and complex fraud schemes.
Set to launch by spring 2026, the new agency will work alongside the CRA, focusing on recovering illicit proceeds and supporting investigations where current tools fall short. Finance Minister François-Philippe Champagne says the goal is to go after high-level financial crimes that often slip through the cracks.
FINTRAC
In the meantime, the government is also using its anti-money laundering watchdog, FINTRAC, to increase pressure on crypto firms.
Recently, FINTRAC issued fines to two well-known platforms — KuCoin and Cryptomus — for failing to comply with Canada’s regulatory standards. These fines signal a clear warning: crypto businesses operating in Canada are under increasing scrutiny, and the days of flying under the radar are numbered.
Outlook
Despite recovering large sums from audits, Canada’s tax agency is still struggling to turn crypto non-compliance into criminal convictions. With court orders, upcoming legislation, and a new agency on the horizon, the CRA is laying the groundwork for stronger enforcement — but it’s still a work in progress.
For now, the message is clear: if you’re trading or investing in crypto, the CRA is watching — and it’s only getting better at it.
FAQs
How much crypto tax did CRA recover?
CRA recovered over C$100 million in crypto tax audits.
How many criminal charges since 2020?
Zero criminal charges have been filed since 2020.
Which firms gave CRA user data?
Dapper Labs and Coinsquare shared user data via court orders.
What’s causing delay in charges?
CRA cites complex cases and limited international cooperation.
What new agency is being launched?
Canada plans a financial crimes agency by spring 2026.
