TLDR

• CRA flagged 40% of crypto users for tax evasion risk in Canada, recovering $100M in taxes.
• The CRA’s crypto audit team has 35 members handling over 230 files to address tax evasion.
• New legislation by the Canadian government to combat crypto tax evasion is expected by Spring 2026.
• FINTRAC fined KuCoin $19.5M for failing to register as a foreign money services business in Canada.

The Canada Revenue Agency (CRA) has revealed that 40% of individuals using cryptoasset platforms in Canada are either evading taxes or are at high risk of non-compliance. Despite the challenge of tracking these users due to limited legal tools and the decentralized nature of crypto transactions, the CRA is taking action to address the…