As Canada approaches its federal election, its position in the global crypto industry faces uncertainty.
Coinbase’s Canadian country director, Lucas Matheson, has warned that while Canada has historically been a leader in digital assets, it risks falling behind and becoming less integrated into the global digital economy without swift regulatory action.
Matheson highlighted that an estimated five million Canadians already own cryptocurrency, pointing to widespread dissatisfaction with the current financial system. According to recent findings, 86% of Canadians believe the system needs modernization, while 80% view it as unfair and 76% consider it outdated. This sentiment underscores the growing desire for regulatory reform that could support the crypto sector’s expansion.
With reports indicating that former Bank of England Governor Mark Carney is poised to replace Justin Trudeau as leader of the Liberal Party and the next Prime Minister, the outlook for the crypto industry in Canada remains uncertain. Carney’s track record of skepticism toward Bitcoin and his support for central bank digital currencies stand in contrast to the crypto-friendly approaches gaining traction in other countries, notably the United States.
In light of these challenges, Coinbase urges Canada’s next government to implement
“clear, innovation-friendly regulatory reform”
to safeguard the country’s position in the global crypto landscape. Among its proposals are creating a government-led crypto task force within 100 days, establishing a Bitcoin reserve, and introducing federal stablecoin regulations. Additionally, Coinbase is advocating for more precise classifications of digital assets, fewer barriers for crypto mining, and regulatory changes that would allow banks to hold and use cryptocurrency safely.
Meanwhile, Coinbase has proposed clearer regulations in the crypto market to the U.S. Securities and Exchange Commission (SEC). The proposals include classifying non-enterprise digital assets as “digital commodities,” clarifying that secondary market trading of these assets is not securities trading, and recognizing Congress’s role in crypto regulation. Additionally, Coinbase supports the tokenization of traditional securities and encourages more industry participation in regulatory discussions.
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