Canada’s global economic position at risk without crypto reforms, Coinbase warns
As Canada approaches its federal election, the future of cryptocurrency in the country is becoming a hot topic. Lucas Matheson, Country Manager for Coinbase Canada, warned that while Canada has been a leader in the space, it is now at risk of falling behind and becoming less integrated into the global digital economy.
In a recent blog post, Matheson highlighted that around 5 million Canadians already own cryptocurrency, with 86% of them agreeing that the financial system needs an update. Many also feel that the current system is “unfair to everyone (80%) and outdated (76%).”
However, regulatory hurdles have caused some cryptocurrency exchanges, including Binance, to leave Canada after the country imposed stricter new regulations on digital currency trading platforms. The Canadian Securities Administrators (CSA) has asked crypto platforms to register within 30 days and comply with stricter customer asset protections.
Now, Coinbase is calling on the next Canadian government to introduce “clear, innovation-friendly regulatory reform.” The company’s proposals include establishing a crypto task force within 100 days, establishing a Bitcoin reserve, and implementing federal regulations on stablecoins. Additionally, Coinbase wants clearer definitions of digital assets, lower barriers to crypto mining, and rules that allow banks to hold and use crypto.
Matheson stressed that while Canadian regulators have been engaging with the crypto industry, there has been a lack of significant political engagement from lawmakers. He called for closer collaboration with politicians and members of parliament to ensure a strong regulatory framework for cryptocurrencies in Canada.
Canada’s failure to act could result in a loss of competitive advantage in the cryptocurrency and blockchain space, pushing innovation overseas and leaving Canadian consumers unprotected in an outdated financial system.
