Canada urges redoubling of blockchain strategy

 

Canada urges redoubling of blockchain strategy

Canada could weigh in behind the blockchain industry in the coming months

according to a House of Commons report highlighting the benefits of technology.

The 62-page report stems :

• from the Standing Committee on Industry

• and Technology and urged the Government to recognize

• the blockchain as an "emerging industry".

Chaired by Joel Leitbound

the report resulted from several meetings

and testimonies from key industry stakeholders.

The report noted :

blockchain can play an important role in reforming the financial services sector while creating applications in the supply chain and manufacturing industries.

A small portion of Canadian business entities switch to blockchain-based systems

with 13% of citizens having at least one type of digital asset.

However :

1. the report noted that
2. unclear regulations may push innovation
3. and Canadian Web3 away to other jurisdictions.

Jamie Leverton :

CEO of Hut 8 Mining Corporation

said :

The lack of clarity and lack of support from a funding perspective ultimately

pushed a lot of our talents away. A lot of talent was born in Canada.

later take their business

innovation and property and establish themselves elsewhere in the world .

Currently :

1. local regulations keep pace
2. with global best practices
3. making them able to protect investors from most risks.

Canadian authorities issued several famous regulations

for the industry following QuadrigaCX's 2019 implosion.

To encourage innovation :

the report made 16 recommendations to the Government

ranging from establishing a blockchain national strategy to

enhancing opportunities for international cooperation.

Authorities are encouraged to develop sandboxes to allow innovators to

build without regulatory barriers, especially with stablecoins.

Other recommendations include a public awareness campaign to

warn the public about the risks associated with investing in cryptocurrencies.

Canadian regulators have been exerting increasing pressure on

foreign digital asset exchanges to comply

with domestic regulations or face harsh sanctions.

Increased scrutiny led to a wave of high

profile exits from the country

with OKX blaming "new regulations for its exits."

Binance :

Bybit, dYdX and Paxos have all announced plans to

halt operations in Canada after increasing pressure from local regulators.

"Bybit's primary objective has always been to operate our business in accordance with all relevant rules and regulations in Canada," Bybit's exit statement reads.

In light of the recent regulatory development

Bybit has made the difficult but necessary decision to

temporarily stop the availability of our products and services.