The Canada Revenue Agency (CRA) says that as many as 40% of cryptocurrency owners in the country are evading taxes or are at risk of non-compliance.
CRA currently has 35 auditors in its crypto asset program, working on over 230 files. The auditors have chased down and recovered $100 million of unpaid taxes in the last three years.
Still, the CRA says it faces significant challenges in ensuring tax compliance when it comes to people’s holdings of Bitcoin (BTC), Ethereum (ETH), and other digital assets.
The CRA has begun requiring reporting and disclosures from cryptocurrency platforms operating in Canada such as Coinbase Global (COIN) and Dapper Labs.
CRA’s stepped up enforcement comes as the federal government in Ottawa expresses concern over taxpayers using cryptocurrencies to evade taxes.
To assist CRA, the federal Finance Department has introduced legislation that goes into effect in 2026 and gives Canada’s tax authority greater powers to pursue taxes on crypto holdings.
Canada’s financial intelligence unit, FINTRAC, has been enforcing anti-money laundering laws, targeting crypto exchanges and platforms in the process.
FINTRAC recently fined KuCoin $19.5 million for failing to register as a foreign money services business within Canada.
