Canadian lawmakers are calling for a comprehensive blockchain strategy.
A recent report by Canadian lawmakers has acknowledged blockchain, cryptocurrency, and mining as innovative industries with significant long-term potential, highlighting the need for improved regulation.
In September of last year, the Canadian House of Commons Parliamentary Standing Committee on Industry and Technology (INDU) passed a motion recognizing blockchain as an emerging technology that has the potential to bring about innovation and efficiency gains in various industries.
However, the committee argued that better regulation was necessary, which could lead to increased investments and drive innovation in the Canadian economy.
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As a result, the INDU conducted a comprehensive study that examined the use cases of blockchain and cryptocurrency in the country. This study included five meetings, testimony from 31 witnesses, and the receipt of six briefs.
Subsequently, the lawmakers released 16 recommendations for the Canadian government:
- Recognize blockchain as an emerging industry with significant long-term economic and job creation opportunities.
- Protect individuals’ right to self-custody and promote access to safe and reliable on and off-ramps.
- Establish a national blockchain strategy to clarify policy direction, regulatory approach, and demonstrate support for the industry.
- Establish a platform for information exchange and monitoring by collaborating with experts, entrepreneurs, academics, investors, and AI experts.
- Pursue opportunities for international cooperation in the development of blockchain regulations.
- Conduct pilot projects to strengthen the ecosystem and support emerging businesses.
- Create a sandbox environment for entrepreneurs to test technologies without hinderance from unadopted regulations.
- Adopt a distinct regulatory approach to stablecoins, considering their unique challenges.
- Implement regulations to promote the establishment of federally regulated crypto custodians to meet the demand for cold storage services.
- Facilitate access to banking and insurance services for blockchain firms.
- Launch a public awareness campaign to educate the public about the risks and benefits of accessing crypto markets through regulated Canadian entities.
- Initiate a strategic program to develop skills, talent, and support research in the blockchain industry.
- Explore ways to promote the adoption of blockchain technology in supply chains.
- Conduct a study on the opportunities that blockchain presents for electronic voting and the modernization of democratic institutions.
- Examine equity between provinces in the application of the Excise Tax Act to mining activities.
- Maintain a neutral and equitable position towards the digital asset mining industry by considering it as a commercial activity.
Coinbase responded to the report, describing the recommendations as “landmark” and “promising.” They expressed their satisfaction with the committee’s recognition of the benefits, utility, and value of blockchain technology.
According to Coinbase, the approach of the parliamentary committee is forward-thinking, and the government is willing to collaborate with the crypto/blockchain industry on various fronts.
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