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Canada Widens Crypto Tax Probe With Court Order Targeting 2,500 Dapper Labs Users

The push signals enforcement limits that persist despite substantial audit recoveries.

Overview

  • The Federal Court approved an order compelling Dapper Labs to disclose data on 2,500 users after the CRA narrowed an initial request covering about 18,000 accounts.
  • Dapper Labs has not been accused of wrongdoing, and this is only the second major court‑ordered disclosure of Canadian crypto customer data after the 2020 Coinsquare case.
  • The CRA reports 35 specialized auditors working on more than 230 crypto files, recovering roughly C$100 million in the past three years and flagging up to 40% of users as non‑compliant or high risk.
  • CRA officials say legal and technical gaps hinder reliable identification of crypto taxpayers, and no criminal charges have been laid since 2020 despite multiple ongoing investigations.
  • Ottawa plans a dedicated Financial Crimes Agency by spring 2026 and adoption of the OECD Crypto‑Asset Reporting Framework in 2026, while FINTRAC has levied large 2025 AML penalties including nearly C$177 million against Xeltox and C$19.5 million against KuCoin.