The government of Canada is being urged by a committee of MPs to establish a national blockchain strategy that explains the nation’s regulatory stance and “demonstrates support for the industry,” according to a series of policy recommendations released in June.
The House of Commons Standing Committee on Industry and Technology’s first of 16 recommendations urges the government to acknowledge the “significant long-term economic and job creation opportunities” presented by the blockchain sector.
The committee’s report, which was produced after the government demanded a study of blockchain technology, includes a call for future policy on digital assets to “be guided by the principle that individuals’ right to self custody should be protected and that ease of access to safe and reliable on and off ramps should be defended and promoted.”
The trading platform Coinbase recently praised Canada’s approach to overseeing the sector as it battles regulators in the U.S. Despite the country’s approach to regulating digital assets being quite strict, with a promise to tighten rules for crypto exchanges following the collapse of well-known businesses like FTX in 2022.
The legislator committee also wants the Canadian government to establish a unique legal framework for stablecoins that sets them apart from other crypto assets, akin to the Markets in Crypto Assets (MiCA) framework of the European Union, which treats stablecoins as a separate class of assets.Other suggestions include establishing rules for cryptocurrency custody platforms, taking steps to enable blockchain companies to use banking services, and making sure that cryptocurrency mining operations are fairly taxed.
“While many emphasized Canada’s strong regulatory safeguards, such as provincial securities regulation and federal anti-money laundering and anti-terrorism financing obligations, witnesses stated that governments need to partner with industry to better understand this rapidly evolving sector and enact regulations that protect consumers without unnecessarily hindering innovation,” the committee said in its report.