Canada is approaching a crucial federal election, and the future of its crypto industry could be significantly impacted. Coinbase warns that without prompt implementation of clear, innovation-friendly regulations, Canada risks falling behind globally. Lucas Matheson, Coinbase’s Canadian director, pointed out that while Canada was once a leader in the crypto space, the absence of proactive policymaking poses a threat.
Crypto adoption is on the rise among Canadian retailers. An estimated five million Canadians currently hold digital assets, and there is strong public support for financial reform. A significant majority, 86%, believe that the financial system needs modernization, with many finding it unfair (80%) and outdated (76%). Better regulation could encourage nearly a third of Canadians (29%) to invest more in cryptocurrency. A report from MoonPay shows that over 90% of its Canadian users are purchasing crypto, indicating the need for the government to embrace regulatory changes that promote financial innovation.
However, regulatory challenges have already forced several major exchanges to exit Canada, mainly due to strict policies on stablecoins and trading platforms. The upcoming election presents a chance for a new administration to implement reforms that encourage crypto adoption and position Canada as a global leader in digital assets.
Coinbase has proposed a comprehensive plan urging the new government to act decisively within its first 100 days. This includes establishing a government crypto task force, uniting industry leaders from both public and private sectors to create a national crypto strategy and coherent regulatory framework. Another recommendation is the establishment of a Bitcoin reserve, similar to initiatives in other countries, to bolster Canada’s standing in the global crypto economy.
Regulatory clarity on stablecoins is another critical area highlighted by Coinbase. The company believes that stablecoins could revolutionize payment systems, making them faster, cheaper, and more efficient. Additionally, clearly defining digital assets is essential, as the absence of standard classification is a significant hurdle for Canada’s crypto adoption.
Canada’s abundant energy resources also offer a unique opportunity for large-scale crypto mining. With some of the world’s most affordable energy, Canada is an ideal spot for such operations. Coinbase recommends policies that ease the development of crypto and AI data centers, potentially drawing billions in investment.
Coinbase also advocates for updated regulations to allow banks to safely handle and use crypto, integrate digital asset management into banking services, and ensure that financial institutions do not deny essential services to Web3 businesses.
Despite these challenges, Coinbase remains committed to Canada. In an interview, Lucas Matheson highlighted Canada’s strong crypto awareness and relatively clear regulatory framework. He noted that Coinbase’s registration as a Restricted Dealer with the Canadian Securities Administrators was a pivotal step in legitimizing crypto operations in the country. While Canada is ahead in regulatory clarity, further reforms are needed to ensure continued growth and adoption. Whether the new government embraces Coinbase’s proposals or maintains the status quo will shape the country’s crypto future.
📝 @BitwiseInvest CIO @Matt_Hougan sees Trump’s executive order for a Bitcoin Reserve as a game changer for Bitcoin’s future viability. #Bitcoin #Crypto
