Canadian Parliamentary Report Urges Recognition and Comprehensive Steps for the Blockchain Industry
A report recently released by the Canadian House of Commons Standing Committee on Industry and Technology has put forth recommendations calling for the official recognition of blockchain as an emerging industry in the country, emphasizing the need for thorough action to support its development.
The report, the result of a comprehensive study involving five meetings, numerous witnesses, and briefs, outlined various applications of blockchain technology, including cryptocurrency, supply chain management, public sector utilization, and non-crypto financial innovations.
According to a witness for the committee, Canada showcases remarkable innovation and entrepreneurial capacity in the field of blockchain, surpassing expectations relative to its size. Statistics revealed that in 2021, 2.5% of large enterprises in Canada embraced blockchain, while the adoption rate among small- and medium-sized enterprises remained below 1%. Witnesses estimated that around 16,000 Canadians were employed in the blockchain industry in 2020, with a particular witness suggesting that cryptocurrency firms alone employed 13,000 Canadians by 2022.
Highlighting the importance of consumer protection, the report cited witnesses who stated that cryptocurrency trading platforms operating in Canada are adequately regulated, addressing risks seen from foreign platforms. The collapse of the Canadian QuadrigaCX trading platform in 2019 was credited with prompting regulators to take action. Furthermore, the report acknowledged that, alongside high-profile issues, individuals seeking entry into the crypto market on a smaller scale are frequently targeted by malicious actors.
In addition to recognizing the role of blockchain in the country, the report recommended 15 further steps to be taken. It emphasized the necessity for enhanced regulatory clarity and the formulation of a national strategy in collaboration with industry participants. Notably, stablecoin regulation was highlighted, as the report observed that even witnesses appearing before the committee held differing opinions on whether stablecoins should be considered securities.