Canadian House of Commons: Recommends Developing National Blockchain Strategy

Canada's House of Commons recommends a national blockchain strategy be developed.

Author: Jacob Oliver, CryptoSlate; Translation: Matsumi, Blocking

As the United States struggles to navigate a fractured and tumultuous regulatory environment for digital assets, some legislators in Canada are attempting to take a more comprehensive approach.

The Canadian House of Commons Standing Committee on Industry and Technology has released a comprehensive report on blockchain technology, including a series of recommendations to the Canadian government to support and promote the development of the blockchain and cryptocurrency industry.

The committee’s report, titled “Blockchain Technology: Cryptoassets and other”, emphasizes the potential of blockchain technology to digitize underdeveloped economic sectors and unleash unprecedented value creation. Given this potential, the committee’s first recommendation urges the government to recognize blockchain as an emerging industry with significant economic and employment prospects.

The proposed guidelines recognize the need for a flexible regulatory framework, particularly in the wake of concerns about the survival of the cryptocurrency industry following the collapse of FTX. However, the committee believes that Canada’s regulations are generally effective and notes that the impact of the FTX incident on Canada’s industry companies has been limited:

“The regulatory environment is the main reason why domestic companies in Canada have been less affected by recent events, and why the likelihood of such events occurring in Canada is significantly lower than elsewhere.”

To strengthen Canada’s leadership position in the digital asset space, the committee recommends the development of a national blockchain strategy. This proposal includes a comprehensive review of consumer protection regulations and a commitment to protecting the right of individuals to self-custody their digital assets.

Another important recommendation is for the government to take a unique regulatory approach to stablecoins, which are a type of cryptocurrency designed to maintain a stable value relative to a specific asset or pool of assets. Due to their distinct use cases and unique regulatory challenges, the committee believes stablecoins are different from other cryptocurrencies.

These recommendations also address the need for education initiatives: to educate the public about the risks and benefits of cryptocurrency; to establish a sandbox environment for entrepreneurs to test new technologies without regulatory barriers.

At the time of this report’s release, the US Securities and Exchange Commission (SEC) has filed lawsuits against global giants Binance and Coinbase, accusing them of violating US securities laws. These cases have caused significant volatility in the digital asset market and raised concerns about the US regulatory attitude towards cracking down on digital assets.

As the United States enters a new era of digital asset regulatory scrutiny, Canada’s comprehensive strategy outlines a progressive blueprint that positions Canada as a regulatory beacon of clarity in the turbulent world of digital assets, promoting innovation while ensuring market integrity and consumer protection.