Canadian Lawmakers Publish Report Defending And Supporting Crypto, Coinbase Approves

A committee in Canada’s House of Representatives published a report on Wednesday that makes 16 recommendations for how the country’s government should regulate the blockchain industry — and they’re remarkably optimistic.

Crypto exchange Coinbase praised the report, saying it was “encouraged by the parliamentary committee’s forward-thinking approach.”

Opening Canada to Crypto

in the first one recommendationThe Parliamentary Standing Committee on Industry and Technology (INDU) has asked the Canadian government to recognize blockchain technology as a growing industry with the potential to create jobs and boost economic growth.

The committee’s stance echoes that of British Prime Minister Rishi Sunak, who spearheaded a newly passed bill to recognize cryptocurrency trading as a legal, regulated financial activity.

Canadian Prime Minister Justin Trudeau has been generally dismissive of cryptocurrency, but his conservative political rival Pierre Poiliver is a proud Bitcoin supporter.

The House committee composition is slightly left-leaning, but in some ways better resembles Poilievre’s position. Regarding the bitcoin mining industry, the report proposes maintaining a “neutral and fair position” in order to “enhance a competitive digital asset mining environment” and “attract investment.”

He suggested investigating “provincial equality” in its application of the Excise Tax Act to the mining industry to “ensure fair taxation”. In the US, the Biden administration has recommended a debilitating 30% excise tax specifically targeting miners in May (which has been set aside for the time being).

Canadian lawmakers have also called for protection of individuals’ “right to self-custody,” and for easy access to “safe and reliable on- and off-slope slopes.”

Coinbase responds

Canada’s report was a breath of fresh air for Coinbase, which has repeatedly criticized a lack of regulatory clarity and hostility from the United States, where it is headquartered.

in reply letterThe company has shown particular interest in the committee’s recommendation on stablecoins, calling for a “unique regulatory approach” to such assets.

“Stablecoins, which are a type of cryptocurrency pegged to a fixed asset like fiat currency, introduce new regulatory considerations,” Coinbase wrote. “This tailored approach will enable effective oversight while fostering innovation.”

Canada Current position On stablecoins is that they are securities – a position that Coinbase CEO Brian Armstrong does not share. The US Securities and Exchange Commission (SEC) also appears to think they are securities, given its recent lawsuit against Binance alleging that its stablecoin BUSD fits the bill.