Canada’s $72M Crypto Tax Crackdown Targets 2,500 Dapper Labs Users — But No Charges Yet
Canada’s tax authority has widened its crypto enforcement internet, focusing on 2,500 customers of Vancouver-based NFT agency Dapper Labs in a probe tied to an estimated C$72 million ($54 million) in suspected unpaid taxes.
The probe sits inside a bigger Canada Revenue Agency (CRA) marketing campaign that has already generated greater than C$100 million in recovered taxes by means of crypto audits over the previous three years, in keeping with a report by The Canadian Press
Yet regardless of the rising sums concerned, authorities verify that no prison fees have been laid in any crypto tax case since 2020, exhibiting the hole between civil enforcement and prison prosecution in Canada’s digital asset sector.
CRA Secures Rare ‘Unnamed Persons’ Order in Dapper Labs Tax Probe
The report said that the CRA sought and acquired approval in September to compel Dapper Labs to reveal data tied to hundreds of customers below what is called an “unnamed individuals requirement.”
The authorized device permits tax authorities to acquire data on an identifiable group of taxpayers with out accusing the corporate itself of wrongdoing.
Dapper, which operates one of the vital distinguished non-fungible token platforms and runs its personal blockchain and digital wallets, didn’t oppose the appliance.
The report exhibits the CRA initially sought data on roughly 18,000 Dapper customers, however following negotiations, the scope was narrowed to 2,500 accounts.
It marks solely the second time Canadian courts have granted such an order in opposition to a home crypto agency, the primary being issued in opposition to Coinsquare in 2020.
In an affidavit supporting the appliance, CRA challenge lead Predrag Mizdrak mentioned crypto markets are deeply embedded within the underground economic system and current “important non-compliance” dangers.
Internal company figures present that about 15% of Canadian crypto customers fail to file taxes on time or in any respect, whereas 30% of those that do file are categorized as high danger for non-compliance.
The company estimates that as much as 40% of taxpayers utilizing crypto platforms fall into non-filing or high-risk classes.
The CRA at present employs 35 devoted cryptoasset auditors working throughout greater than 230 recordsdata.
Since 2020, 5 prison investigations involving digital belongings have been launched, with 4 nonetheless ongoing as of March.
The company says the instances are complicated and sometimes hinge on cross-border proof and cooperation, contributing to lengthy timelines and the absence of fees thus far.
Canada Prepares New Crypto Reporting Rules as Federal Crackdown Widens
The crackdown on Dapper customers comes as Canada tightens its wider crypto oversight. Under long-standing CRA coverage, cryptocurrencies are treated as commodities quite than currencies.
Casual traders usually face capital positive aspects tax, with only 50% of profits taxable at marginal charges, whereas frequent merchants, miners, and crypto companies are taxed on full enterprise earnings.
Most crypto transactions, together with gross sales, swaps, and crypto-based purchases, are handled as taxable tendencies below present guidelines.
New reporting guidelines are additionally on the best way as Canada is preparing to implement the OECD-backed Crypto-Asset Reporting Framework beginning in 2026. The framework would require exchanges, brokers, and crypto ATM operators to report transaction information and buyer data on to the CRA.
The 2024 federal funds put aside greater than C$50 million over 5 years to assist that effort.
At the identical time, Ottawa plans to determine a nationwide monetary crimes company by 2026 to give attention to subtle cash laundering and on-line monetary fraud.
Finance officers describe it because the nation’s first unit targeted completely on subtle monetary crime.
Beyond taxes, enforcement has intensified on the anti-money-laundering entrance. FINTRAC just lately issued a record C$19.6 million fine against KuCoin for failing to register and report massive transactions.
Canada’s monetary intelligence company @FINTRAC_Canada
has fined the operator of @kucoincom C$19.6 million (US$14.09 million).#KuCoin #Canadahttps://t.co/O2k1Fskkgd— Cryptonews.com (@cryptonews) September 26, 2025
Meanwhile, one other agency, Xeltox Enterprises, was hit with penalties totaling nearly C$177 million.
In September, the Royal Canadian Mounted Police shut down TradeOgre and seized greater than C$56 million in belongings, marking Canada’s first full crypto alternate takedown.
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