Canada’s tax authority has widened its crypto enforcement net, targeting 2,500 users of Vancouver-based NFT firm Dapper Labs in a probe tied to an estimated C$72 million ($54 million) in suspected unpaid taxes.
The probe sits within a larger Canada Revenue Agency (CRA) campaign that has already generated more than C$100 million in recovered taxes through crypto audits over the past three years, according to a report by The Canadian Press
Yet despite the growing sums involved, authorities confirm that no criminal charges have been laid in any crypto tax case since 2020, showing the gap between civil enforcement and criminal prosecution in Canada’s digital asset sector.
CRA Secures Rare ‘Unnamed Persons’ Order in Dapper Labs Tax Probe
The report stated that the CRA sought and received approval in September to compel Dapper Labs to disclose information tied to thousands of users under what is known as an “unnamed persons requirement.”
The legal tool allows tax authorities to obtain records on an identifiable group of taxpayers without accusing the company itself of wrongdoing.
Dapper, which operates one of the most prominent non-fungible token platforms and runs its own blockchain and digital wallets, did not oppose the application.
The report shows the CRA initially sought information on roughly 18,000 Dapper users, but following negotiations, the scope was narrowed to 2,500 accounts.
It marks only the second time Canadian courts have granted such an order against a domestic crypto firm, the first being issued against Coinsquare in 2020.
In an affidavit supporting the application, CRA project lead Predrag Mizdrak said crypto markets are deeply embedded in the underground economy and present “significant non-compliance” risks.
Internal agency figures show that about 15% of Canadian crypto users fail to file taxes on time or at all, while 30% of those who do file are classified as high risk for non-compliance.
The agency estimates that up to 40% of taxpayers using crypto platforms fall into non-filing or high-risk categories.
The CRA currently employs 35 dedicated cryptoasset auditors working across more than 230 files.
Since 2020, five criminal investigations involving digital assets have been launched, with four still ongoing as of March.
The agency says the cases are complex and often hinge on cross-border evidence and cooperation, contributing to long timelines and the absence of charges to date.
Canada Prepares New Crypto Reporting Rules as Federal Crackdown Widens
The crackdown on Dapper users comes as Canada tightens its wider crypto oversight. Under long-standing CRA policy, cryptocurrencies are treated as commodities rather than currencies.
Casual investors generally face capital gains tax, with only 50% of profits taxable at marginal rates, while frequent traders, miners, and crypto businesses are taxed on full business income.
Most crypto transactions, including sales, swaps, and crypto-based purchases, are treated as taxable dispositions under existing rules.
New reporting rules are also on the way as Canada is preparing to implement the OECD-backed Crypto-Asset Reporting Framework starting in 2026. The framework will require exchanges, brokers, and crypto ATM operators to report transaction data and customer information directly to the CRA.
The 2024 federal budget set aside more than C$50 million over five years to support that effort.
At the same time, Ottawa plans to establish a national financial crimes agency by 2026 to focus on sophisticated money laundering and online financial fraud.
Finance officials describe it as the country’s first unit focused exclusively on sophisticated financial crime.
Beyond taxes, enforcement has intensified on the anti-money-laundering front. FINTRAC recently issued a record C$19.6 million fine against KuCoin for failing to register and report large transactions.
Meanwhile, another firm, Xeltox Enterprises, was hit with penalties totaling nearly C$177 million.
In September, the Royal Canadian Mounted Police shut down TradeOgre and seized more than C$56 million in assets, marking Canada’s first full crypto exchange takedown.
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