The Canada Revenue Agency (CRA) has obtained a court order requiring Dapper Labs to provide detailed information on 2,500 platform users. This action is part of an expanded investigation into undeclared cryptocurrency income, according to court documents filed in September 2025.
CRA Intensifies Scrutiny of Dapper Labs Users
The Federal Court order compels the Vancouver-based NFT platform, Dapper Labs, to supply data on a specific group of customers. This marks Canada’s second major probe into crypto tax evasion. The CRA initially sought information on approximately 18,000 accounts but narrowed the request to 2,500 users following negotiations, according to agency statements.
Dapper Labs, known for NFT products including NBA Top Shot and CryptoKitties, has not been accused of any wrongdoing. This court order follows a precedent established in 2020 when the CRA obtained customer data from the Toronto-based exchange Coinsquare.
Government Efforts to Combat Crypto Tax Evasion
The CRA has successfully recovered more than C$100 million in unpaid taxes related to cryptocurrency activity over the past three years, according to CRA figures. However, the agency has not secured a criminal conviction for crypto tax evasion since 2020, despite ongoing investigations.
Internal CRA estimates indicate that as many as 40% of users on certain platforms may be non-compliant with tax reporting requirements. Investigators have cited difficulties gathering evidence across multiple jurisdictions and decentralized platforms as obstacles to prosecution.
The federal government plans to establish a new financial crimes agency by spring 2026. This agency is intended to expand investigative capabilities and streamline data collection for digital-asset cases, according to government announcements.
Canada Adopts Global Standards for Crypto Reporting
Canada will implement the OECD’s Crypto-Asset Reporting Framework beginning in 2026. This framework will require crypto-asset service providers to report customer identities, account balances, and transaction data annually to the CRA. The framework aligns Canada with other nations adopting enhanced disclosure requirements for digital-asset companies.
Increased Regulatory Action in 2025
Canadian regulators have increased enforcement actions in 2025. FINTRAC, the country’s financial intelligence unit, imposed a C$176.96 million penalty on Cryptomus for anti-money-laundering violations. FINTRAC also fined KuCoin C$19.5 million for similar breaches, according to FINTRAC statements.
Future of Crypto Compliance in Canada
The combination of court-ordered data requests, forthcoming CARF reporting requirements, and the planned financial crimes agency represents a significant expansion of Canada’s approach to cryptocurrency taxation and compliance.