Canadian Lawmakers Publish Recommendations in Support of Blockchain Adoption

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While the US continues its struggle with a fragmented and chaotic regulatory environment for digital assets, the Canadian Parliament is embarking on a more comprehensive strategy for blockchain adoption. The House of Commons of Canada is on its way to promoting blockchain technology and cryptocurrencies further, as per a Report created by the Standing Committee on Industry and Technology (INDU).

The Report advises the Government of Canada to encourage and foster the blockchain and cryptocurrency industries. It calls for a balance between regulation and innovation amid the dynamic landscape.

Bringing Blockchain into the Mainstream: Insights from the Report

The Committee’s paper, titled “Blockchain Technology: Cryptocurrencies and Beyond,” emphasizes how blockchain technology could digitize underserved economic sectors and spark hitherto unheard-of value creation.

The Report makes the case that the Canadian government should acknowledge blockchain as an emerging industry, give top priority to safeguarding users’ right to self-custody, and encourage secure access to digital assets. It also urges the government to identify methods to promote the adoption of blockchain technology to bring it into the mainstream.

The research acknowledges the need for a robust regulatory framework, especially considering the FTX crash, which raised concerns about the future of the cryptocurrency market on a worldwide scale. The committee, however, believes that Canadian regulations are generally successful, citing the negligible effect of the FTX scandal on Canadian businesses.

The Standing Committee’s Report also recommends developing a “National Blockchain Strategy” to bolster Canada’s leadership in the space of digital assets. According to the Report, this nationwide strategy should take a participatory approach, involving professionals, entrepreneurs, academics, investors, and the Artificial Intelligence industry.

The report also focuses on the need for a platform for information sharing and monitoring, analyzing potential areas for disruption, giving advice to the government on prospective projects, and assisting with their implementation. It also commits to safeguarding people’s rights to self-custody of digital assets and involves a thorough examination of consumer protection laws.

🇨🇦 Landmark Report: Canadian Lawmakers Advocate for Comprehensive Blockchain Strategy

Canadian lawmakers' recent report has recognized #blockchain, crypto, and mining as innovative industries in need of better regulation.#CryptoNews #Canada #crypto https://t.co/JCrgZ4Ra9f

— Cryptonews.com (@cryptonews) June 29, 2023

Another important recommendation is for the government to develop a unique regulatory approach to stablecoins. Stablecoins are a type of cryptocurrency intended to maintain a stable value in relation to a particular asset or a pool of assets. Due to their various use cases and particular legal difficulties, the Committee sees stablecoins as being distinct from other cryptocurrencies and suggests distinct supervision for them.

That’s not all. The proposals also cover the need for public education campaigns regarding the advantages and disadvantages of cryptocurrencies. Recommendations have also been for the creation of a regulatory-free testing ground for entrepreneurs to try out innovative technology.

The report makes additional recommendations for the government to pursue international collaboration in the creation of blockchain regulations and policies, carry out innovative distributed ledger pilot projects, encourage the establishment of federally regulated cryptocurrency custodians, and give blockchain companies access to banking and insurance services.

Canada’s Refreshing Approach and Lessons for the US

Canada’s comprehensive strategy outlines a progressive blueprint for fostering innovation while ensuring market integrity and consumer protection. The Standing Committee’s stance could be key to positioning Canada as a beacon of regulatory clarity in the currently turbulent world of digital assets.

This novel and much-needed approach could serve as a roadmap for promoting innovation and assisting the crypto industry’s expansion in the country. It could help ensure regulatory coherence nationwide, emphasizing the federal government’s significant involvement in this developing sector. Canada may present itself as an appealing destination for blockchain-related enterprises and startups by expressing support for the crypto sphere.

The 16 recommendations included in the Standing Committee’s Report are all geared towards developing a well-thought-out and futuristic regulatory framework for Canadian crypto businesses. The recommendations are significant, and the Report complements them with other insightful resources.

The US, on the other hand, is entering a new era of regulatory scrutiny for digital assets. While Canada releases the progressive report, The US SEC has filed litigation against global powerhouses Binance and Coinbase for alleged violations of securities laws. These incidents have significantly increased market volatility for digital assets and raised concerns about a wider-ranging governmental crackdown on them in the US.

Big news from Canada.

Canadian lawmakers have published a comprehensive report supporting blockchain technology.

Learn more: https://t.co/Jx8f5asbvi

— Coinbase 🛡️ (@coinbase) June 28, 2023

Coinbase has publicly applauded Canada’s progressive attitude towards innovation and freedom in blockchain development. The crypto exchange is confident that these suggestions will open the door for the development and wide-scale adoption of blockchain technology in Canada. Additionally, it highlights the fact that blockchain technology is a global phenomenon and the necessity of cooperative interaction between market participants and regulatory agencies.

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