Canada’s tax watchdog, the Canada Revenue Agency (CRA), is reportedly working on identification of the notorious cryptocurrency exchange Coinsquare, the National Post has learned, citing a September filing by the regulator.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
The CRA wants to fight tax fraud by asking the federal court to force Coinsquare to share information about all its clients starting from 2013. With this information, the watchdog wants to ensure that all the exchange's clients have "complied with their duties and obligations."
"CRA could use this information to essentially try to verify or to match certain transactions with what was reported” in Canadians’ tax filings," said David Piccolo, a tax lawyer at Tax Chambers.
In July, Cole Diamond, the CEO of a Canadian popular cryptocurrency exchange Coinsquare, and president Virgile Rostand resigned from their positions and paid the fine of $1 million and $900,000, respectively amid accusations of wash trading.
According to the Ontario Securities Commission (OSC), Rostand and Diamond are prohibited from acting as registrants and directors for three years. Rostand and Diamond will also pay $300,000 toward the costs of the regulator's investigation efforts.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.