Canadian lawmakers in the House of Commons have shown their support for blockchain technology and cryptocurrencies in a report released by the Standing Committee on Industry and Technology (INDU).
The report, which consists of 16 separate proposals, highlights the advantages and potential of blockchain technology in various sectors. As a result of the INDU’s deliberations, the committee made recommendations that they included in the report for the consideration of the House of Commons and the government.
The report recommends the Canadian government should recognize blockchain as an emerging industry with significant long-term economic and job creation opportunities. It recommends prioritizing protecting individuals’ right to self-custody, and promoting safe and reliable access to digital assets.
Just as the country pushed for the adoption of crypto regulations, the INDU proposes that the government establish a national blockchain strategy involving experts, entrepreneurs, academics, investors and the artificial intelligence (AI) industry. The report suggests the strategy should establish a platform for information exchange and monitoring, analyze promising areas for disruption, advise the government on promising initiatives, and support the government with implementation.
The report also suggests the government pursue international cooperation in developing blockchain regulations and policies, conduct innovative pilot projects using distributed ledgers, adopt a distinct regulatory approach to stablecoins, promote the establishment of federally regulated cryptocurrency custodians, and provide access to banking and insurance services for blockchain firms.
The report stated that a public awareness campaign should be launched to educate the public about the risks related to cryptocurrencies and the benefits of accessing cryptocurrency markets through regulated Canadian entities.
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To ensure that blockchain technology becomes mainstream, the committee encourages the government to investigate ways to promote the adoption of blockchain technology in supply chains and study the benefits of the technology for electronic voting, consultation and modernization of democratic institutions.
Recently the Canadian Department of Finance proposed legislative changes to Excise Tax Act related to crypto asset mining and remuneration. The INDU proposal recommended investigations of equity between provinces in applying the Excise Tax Act to mining activities and claimed digital asset mining constitutes a competitive industry.
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