The Canada Revenue Agency (CRA) has expanded its crackdown on cryptocurrencies to non-fungible tokens (NFTs).
Non-Fungible Tokens are often referred to as digital art. They can be paintings, drawings, and even baseball cards that contain a unique digital identifier recorded on a blockchain such as Ethereum (CRYPTO: $ETH).
The blockchain identifier certifies the ownership and authenticity of an NFT, say crypto enthusiasts.
The CRA has obtained a court order that requires Vancouver-based NFT platform Dapper Labs to provide detailed information on 2,500 of its users as part of an ongoing tax crackdown.
Specifically, the Canadian tax authority is searching for undeclared cryptocurrency income, according to documents filed in federal court.
The CRA initially sought information on 18,000 Dapper Labs NFT accounts but narrowed the request to 2,500 users following negotiations, according to the court documents.
Dapper Labs is known for NFT products such as NBA Top Shot and CryptoKitties.
The move to go after NFTs comes as the CRA expands its crackdown on unpaid taxes related to crypto income.
The Ottawa-based agency has recovered more than $100 million in unpaid taxes related to cryptocurrencies over the past three years.
Executives at the CRA have said that as many as 40% of crypto owners may be "non-compliant" with their tax reporting obligations.
The widening crypto crackdown also comes as Canada moves to adopt the OECD’s "Crypto-Asset Reporting Framework."
The OECD framework will require crypto-asset service providers to report customer identities, account balances, and transaction data annually to the Canada Revenue Agency.
Bitcoin (CRYPTO: $BTC), the largest crypto by market capitalization, is currently trading at $67,000 U.S.
COMTEX_473338886/2797/2026-02-11T12:40:25