Regulatory clarity alone will not put Canada at the forefront of crypto, but the lack of clear regulation and enforcement disadvantages Canadian businesses and first-time investors relative to foreign competitors.
This week, the House of Commons is expected to continue second reading debate on Bill C-249, An Act respecting the encouragement of the growth of the crypto asset sector, an important private member’s bill from Michelle Rempel Garner, the Conservative MP for Calgary Nose Hill, Alta.
There is an adage that says, “if you don’t take care of a problem, the problem will take care of you.” When we consider the incredible rate of growth occurring in blockchain, cryptocurrencies, and other crypto technologies, this is particularly true.
In only a few years, we have seen crypto evolve from an interesting curiosity, to an object of speculation, to an attractive asset for individual and institutional investors. While it’s true that crypto markets are significantly down this year, leading some to call it a bubble, it is also true that investors will certainly continue to invest in it.
Crypto evolved in what some have called a wildwest environment—without regard for borders, unregulated, and with little official oversight. But that is changing.
More governments and institutions are developing frameworks to guide and define crypto, including key trading partners, like the United States and the European Union, and global policy organizations like the Organisation for Economic Co-operation and Development and the World Economic Forum. Canada is not on this list.
Regulatory clarity alone will not put Canada at the forefront of crypto, and, indeed, many investors thrive without it. The lack of clear regulation and enforcement disadvantages Canadian businesses and first-time investors relative to foreign competitors.
As crypto achieves regulatory clarity elsewhere, we see dynamic growth in corporate and individual investment to build value. This explosive growth phase is what Canada risks missing out on.
It should not be this way. Few Canadians are aware of the key role played by Canadians in blockchain’s development. Vitalik Buterin, the co-founder of Ethereum, one of the world’s most used blockchain platforms, did his pioneering work here and is one of the industry’s key forward thinkers.
Blockchain is efficient, transparent, and completely secure, and each of these attributes offers advantages to the Canadian economy and opportunities for individual investors and businesses to thrive in the digital economy. Canada’s economy, like our trading partners’, has been swamped by trade and fiscal challenges, which makes it hard for Finance Canada and provincial regulators to find the time for a full public study.
While Finance Canada is working on a much-needed consultation on the “Digitization of Money,” a wider discussion on crypto is also needed. Bill C-249 offers the opportunity to start that discussion. The bill has already been presented for first reading and this week MPs will decide whether to send it to the House of Commons Standing Committee on Finance for further review. Apart from a few passing budget references, this will be the first substantial parliamentary discussion on crypto and “web3” issues Canada has had since 2013.
The Canadian Web3 Council urges MPs from all parties to treat this bill as an opportunity for debate and education. It is an opportunity that Canada cannot afford to lose.
Originally published in the Hill Times
