In a recent development, Canadian lawmakers are urging the government to develop a national blockchain strategy. This is signaling the country’s readiness to embrace blockchain technology. Moreover, this move comes as Canada faces a lack of regulatory clarity in the crypto and blockchain market, putting it at a disadvantage compared to other regions.
Similar to the United States, Canada has been grappling with a lack of regulatory clarity in the crypto and blockchain market. This uncertainty has hindered the country’s ability to establish itself as a leading hub for cryptocurrencies and emerging financial technologies. As a result, businesses are leaving and potential newcomers are overlooking Western nations.
Canadian Lawmakers Demand Action
While the US Securities and Exchange Commission (SEC) shows no signs of changing its crypto policies in the near future, Canadian lawmakers have taken a proactive stance by calling on the government to take action.
Importantly, the local House of Commons Standing Committee on Industry and Technology issued a report. In the report, they made several recommendations to recognize blockchain technology as an emerging industry in Canada.
The report further presented 16 recommendations to the government, emphasizing the long-term economic and job creation potential of blockchain technology. It also urged the government to explore opportunities for international cooperation in developing blockchain regulations and policies. This including involvement from major trading partners.
Balancing Regulation and Innovation
Throughout the study on Canada and blockchain technology, the committee held five meetings. They also engaged with 31 witnesses and received six briefs. Witnesses further highlighted the robust regulatory safeguards in place in Canada. This includes provincial securities regulation and federal anti-money laundering (AML) and anti-terrorism financing obligations.
Similarly, witnesses emphasized the need for collaboration between the government and the blockchain industry to gain a comprehensive understanding of the rapidly evolving sector.
This collaboration is crucial to strike a balance between enacting regulations that protect consumers. Additionally, to foster an environment conducive to innovation, which is essential for the country’s benefit and the well-being of its citizens.
Praise for Canada’s Approach to Crypto Monitoring
The crypto and blockchain industries continue to evolve, introducing new trends, products, and services. Blockchain technology continues to find applications in various industries, driving innovation. Canada has taken a strict approach to regulating digital assets, particularly in the wake of the FTX exchange collapse and other related businesses.
Coinbase, a prominent cryptocurrency exchange, has praised Canada’s supervisory approach to the crypto sector. This positive evaluation comes as Coinbase faces legal challenges with US regulators. The stringent regulations in Canada demonstrate the nation’s commitment to overseeing the crypto industry effectively.