As Canada gears up for an election, Coinbase urges the incoming government to prioritize cryptocurrency, cautioning that a lack of clear regulations may hinder the nation’s competitiveness.
With a federal election on the horizon, the future of cryptocurrency in Canada remains uncertain. Lucas Matheson, Coinbase’s Canadian director, has expressed concerns that although the nation has led in this sector, it risks lagging behind and becoming less integrated into the international digital economy.
In a recent blog entry, Matheson highlighted around five million Canadians who currently hold cryptocurrency, noting that “86% of Canadians believe their financial system is in need of an update.” He also pointed out that a significant portion of the population feels the system “is unfair to many (80%) and out of touch (76%).”
Earlier this month, it was reported that Mark Carney, the former Governor of the Bank of England, will succeed Justin Trudeau as the leader of the Liberal Party and Prime Minister of Canada.
Carney’s ascent may not bode well for the local crypto ecosystem, as he has expressed skepticism toward Bitcoin (BTC) and has a preference for central bank digital currencies, diverging from the growing trends seen in the United States.
Increased regulatory challenges have caused several crypto exchanges, including those based in the U.S., to withdraw from Canada following the Canadian Securities Administrators’ implementation of stricter guidelines for crypto trading platforms, with a particular focus on stablecoins.
Now, Coinbase is advocating for the next administration to implement “clear, innovation-friendly regulatory reforms.” The company’s suggestions include creating a government crypto task force within the first 100 days, establishing a Bitcoin reserve, and enacting federal regulations for stablecoins. They are also calling for more precise definitions of digital assets, reduced barriers for crypto mining, and regulations that would allow banks to hold and utilize cryptocurrencies.