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Canada Orders Dapper Labs to Disclose 2,500 Users in NFT Tax Probe

The move underscores tougher oversight after audits recovered over C$100 million without producing criminal charges.

Overview

  • A Federal Court order compels Dapper Labs to provide data on 2,500 users after the CRA narrowed an initial request covering about 18,000 accounts, with the company not accused of wrongdoing.
  • The disclosure is sought under an unnamed persons requirement to support a probe into undeclared crypto and NFT income, following a 2020 precedent involving Coinsquare.
  • The CRA says its 35-member cryptoasset audit team is working on more than 230 files and has recovered over C$100 million in the past three years.
  • Agency affidavits cite significant non-compliance and difficulties identifying taxpayers across borderless platforms, while no crypto-related tax charges have been laid since 2020 despite multiple investigations.
  • Regulators expanded pressure in 2025 with record FINTRAC penalties on Cryptomus (about C$177 million) and KuCoin (about C$19.5 million), alongside plans for a new financial crimes agency by spring 2026 and CARF reporting starting in 2026.