Canadian Lawmakers Want to Help Blockchain Businesses 'Flourish'

In their own words, the lawmakers say Canada has fallen behind the U.S. and Europe in its progress towards establishing crypto regulations.

By Pedro Solimano

A group of thirty Canadian lawmakers has published a report endorsing cryptocurrencies and blockchain technology, with 16 recommendations for the country's government to create a national strategy on the matter.

Titled Blockchain Technology: Cryptocurrencies and Beyond, the report starts off recommending the national government “recognize blockchain as an emerging technology in Canada, with significant long-term economic and job creation opportunities.”

The House of Commons Standing Committee on Industry and Technology notes the need for clear regulation, with industry experts stating the country has fallen behind the U.S. and Europe when it comes to digital asset policies. Aydan Hyman, CEO of Chainsafe Systems is quoted saying “There is an opportunity of a generation to create regulatory clarity and clear standards so that businesses can flourish in Canada.”

Published earlier this month, the report explains the differences between cryptocurrencies and blockchain–with segments on distinguishing proof of work, proof of stake and Web3. It highlights Toronto as one of the major homes for Ethereum, citing Vitalik Buterin and several other co-founders as Canadian nationals.

Within the report, lawmakers call for a policy that is guided by principles of self-custody, and that access to on- and off-ramps–platforms such as exchanges, that allow for fiat currencies to be converted to crypto–must be protected. This could become a point of contention, after authorities tried to seize Bitcoin donated to the Canadian Freedom Convoy protests last year.

The sixteen recommendations include the desire to “create a sandbox” for entrepreneurs to conduct “unhindered tests,” as well as create and promote the establishment of federally regulated custodians. In a bid to compete–or follow–Europe’s landmark MiCA framework, Canada makes a clear distinction for stablecoins and the unique set of challenges they pose.

Last but not least, the final recommendation aims to support and foster crypto mining operations in the country, with the government establishing a neutral and equitable position towards the “growing industry.” This comes amid news of Canadian Bitcoin miner Hut 8 merging with US Bitcoin Corp, creating a giant mining operation which will have its headquarters in the United States.

Canada’s digital asset regulation has been notoriously tight, with several companies withdrawing or pausing their operation in the country. Following the collapse of several crypto companies last year, the country banned leverage trading, and Prime Minister Justin Trudeau has attacked opponents for their “pro-crypto views.”