Canada’s $72M Crypto Tax Crackdown Targets 2,500 Dapper Labs Users — But No Charges Yet

Canadian tax authorities just dropped a $72 million hammer on the crypto space—and 2,500 Dapper Labs users are feeling the weight.

The Revenue Agency's latest move signals a sharp turn from passive guidance to active enforcement. Forget gentle reminders; this is a full-scale audit operation targeting one of blockchain's biggest consumer names.

Why Dapper? The platform's mainstream appeal—think NBA Top Shot—created a perfect storm of high-volume, potentially under-reported transactions. The CRA isn't chasing shadowy DeFi whales this time; it's looking at the guy who bought a LeBron James digital highlight.

No charges have been filed. That's the headline within the headline. The $72 million figure represents assessed back taxes, interest, and penalties—a bill, not an indictment. It's a massive warning shot, proving regulators can and will trace on-chain activity to real-world identities and tax forms.

The strategy is clear: apply traditional financial enforcement to the new digital economy. It's a messy, brutal process, like using a steamroller to collect loose change—but it gets the point across. For the crypto industry, it's a cold splash of reality. Your "digital asset" is just another asset in the eyes of the taxman.

This crackdown cuts both ways. It validates crypto's economic impact—you don't hunt for $72 million in a niche market—while shackling it with the very bureaucracy it sought to bypass. The promise of frictionless finance meets the immovable object of a government budget. Talk about a volatile pairing.

CRA Secures Rare ‘Unnamed Persons’ Order in Dapper Labs Tax Probe

The report stated that the CRA sought and received approval in September to compel Dapper Labs to disclose information tied to thousands of users under what is known as an “unnamed persons requirement.”

The legal tool allows tax authorities to obtain records on an identifiable group of taxpayers without accusing the company itself of wrongdoing.

Dapper, which operates one of the most prominent non-fungible token platforms and runs its own blockchain and digital wallets, did not oppose the application.

The report shows the CRA initially sought information on roughly 18,000 Dapper users, but following negotiations, the scope was narrowed to 2,500 accounts.

It marks only the second time Canadian courts have granted such an order against a domestic crypto firm, the first being issued against Coinsquare in 2020.

In an affidavit supporting the application, CRA project lead Predrag Mizdrak said crypto markets are deeply embedded in the underground economy and present “significant non-compliance” risks.

Internal agency figures show that about 15% of Canadian crypto users fail to file taxes on time or at all, while 30% of those who do file are classified as high risk for non-compliance.

The agency estimates that up to 40% of taxpayers using crypto platforms fall into non-filing or high-risk categories.

The CRA currently employs 35 dedicated cryptoasset auditors working across more than 230 files.

Since 2020, five criminal investigations involving digital assets have been launched, with four still ongoing as of March.

The agency says the cases are complex and often hinge on cross-border evidence and cooperation, contributing to long timelines and the absence of charges to date.

Canada Prepares New Crypto Reporting Rules as Federal Crackdown Widens

The crackdown on Dapper users comes as Canada tightens its wider crypto oversight. Under long-standing CRA policy, cryptocurrencies are treated as commodities rather than currencies.

Casual investors generally face capital gains tax, with only 50% of profits taxable at marginal rates, while frequent traders, miners, and crypto businesses are taxed on full business income.

Most crypto transactions, including sales, swaps, and crypto-based purchases, are treated as taxable dispositions under existing rules.

New reporting rules are also on the way as Canada is preparing to implement the OECD-backed Crypto-Asset Reporting Framework starting in 2026. The framework will require exchanges, brokers, and crypto ATM operators to report transaction data and customer information directly to the CRA.

Crypto firms in Canada will soon face increased disclosure obligations, per regulations introduced in Tuesday's 2024 federal budget.#Canada #crypto #CanadaBudgethttps://t.co/pkdV878DXM

The 2024 federal budget set aside more than C$50 million over five years to support that effort.

At the same time, Ottawa plans to establish a national financial crimes agency by 2026 to focus on sophisticated money laundering and online financial fraud.

Finance officials describe it as the country’s first unit focused exclusively on sophisticated financial crime.

Beyond taxes, enforcement has intensified on the anti-money-laundering front. FINTRAC recently issued a record C$19.6 million fine against KuCoin for failing to register and report large transactions.

Canada’s financial intelligence agency @FINTRAC_Canada
has fined the operator of @kucoincom C$19.6 million (US$14.09 million).#KuCoin #Canadahttps://t.co/O2k1Fskkgd

Meanwhile, another firm, Xeltox Enterprises, was hit with penalties totaling nearly C$177 million.

In September, the Royal Canadian Mounted Police shut down TradeOgre and seized more than C$56 million in assets, marking Canada’s first full crypto exchange takedown.