CRA Reports High Crypto Tax Evasion Risk Among Canadian Users, New Legislation Expected by 2026
The Canada Revenue Agency (CRA) has revealed that 40% of crypto platform users in Canada are either evading taxes or at high risk of non-compliance, according to the Canadian Press. The CRA's cryptoasset program currently employs 35 auditors managing over 230 files, which has resulted in the collection of $100 million in taxes over the past three years.
The Minister of Finance announced that new legislation aimed at combating financial crimes, including crypto tax evasion, is expected by Spring 2026. However, the CRA highlights ongoing legal gaps that hinder the reliable identification of taxpayers in the crypto space and the proper assessment of compliance. To address this, the agency has sought disclosures from major platforms such as Dapper Labs.
In the investigation involving Dapper Labs, information requests initially targeted the top 18,000 users but were later narrowed to 2,500 due to negotiations. Despite these efforts, Dapper Labs has not been fully compliant with the CRA's disclosures.
Separately, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) fined Seychelles-based crypto exchange Peken Global Ltd., operating as KuCoin, over $19.5 million for its failure to register as a foreign money services business in Canada.
