Canada obtains information on 2,500 Dapper Labs users in the second cryptocurrency tax investigation

According to The Block, court documents obtained by the Canadian Press show that over the past three years, the Canada Revenue Agency has collected more than CAD 100 million (approximately USD 72 million) in taxes through cryptocurrency-related audits. However, no criminal charges have been filed since 2020, revealing structural limitations in the country's law enforcement capabilities.

The audit team at the Canada Revenue Agency has processed over 230 files and estimates that among taxpayers using cryptocurrency platforms, 40% have not reported their taxes or are at high risk of non-compliance. However, the Canada Revenue Agency believes that "it is not reliably possible to identify taxpayers in the cryptocurrency space and assess their income tax compliance." Additionally, the report states that the Canada Revenue Agency has obtained data on 2,500 users from Dapper Labs through a court order. The Canada Revenue Agency initially sought information on Dapper's first 18,000 users, but after negotiations with the company's executives and lawyers, it was ultimately narrowed down to 2,500. The application submitted by the Canada Revenue Agency to the federal court in September is the second time a court has ordered a Canadian cryptocurrency company to disclose such information, following a similar order issued to the Toronto-based exchange Coinsquare in 2020.