Canada's Revenue Agency (CRA) is actively targeting nearly $40 million in undeclared taxes on cryptocurrency transactions, with around 400 audits initiated.

The CRA faces challenges in educating the public about tax responsibilities related to digital assets.

Meanwhile, Prime Minister Justin Trudeau is proposing to increase the capital gains tax rate from 50% to 66% for individuals with gains exceeding $183,000 annually.

This move has sparked concerns about its potential impact on the economy and innovation, with parallels drawn to similar tax hike proposals in the United States.