The Canadian government has proposed a significant increase in capital gains tax, aiming to reach 66% in 2024, to alleviate pressure on the housing market.

However, this move has sparked protests from citizens and companies, as it will generate substantial tax revenue from stock trading and cryptocurrency sales.

The Canada Revenue Agency (CRA) is also pursuing approximately 54 million CAD in unidentified cryptocurrency transactions and profits, with 400 ongoing audits and investigations related to crypto assets.

The proposed tax increase, announced by Prime Minister Justin Trudeau, aims to generate as much tax revenue as possible, including capital gains from cryptocurrency sales.

However, opponents argue that this move will negatively impact investors and the cryptocurrency market. The CRA is working to address tax obligations concerning cryptocurrencies, but faces challenges in educating citizens about their tax responsibilities.

The agency is closely following the lead of the US Internal Revenue Service (IRS), which recently introduced a draft tax form (1099-DA) to detail income from cryptocurrency transactions.

The CRA's efforts to examine tax obligations and pursue unidentified transactions signal a new era in cryptocurrency regulation in Canada. As the situation continues to unfold, cryptocurrency investors and enthusiasts are keeping a close eye on developments.