Governments worldwide are rising to the need for a global crypto regulatory framework, first highlighted by the Bank of England. Canada is the latest country to propose a bill for a crypto framework in the country.
Michelle Rempel Garner, a Member of the Canadian House of Commons has introduced Bill C-249, titled “Encouraging the Growth of the Cryptoasset Sector Act” which proposes that the government set up a framework to encourage the adoption and growth of cryptocurrency in Canada.
According to the bill, “Cryptoassets have significant economic and innovative potential for Canada.”
The first reading of the Bill on Wednesday proposed that Canada’s Minister of finance consult with industry experts to develop a regulatory framework to boost innovation in the cryptocurrency sector. According to the Act, the framework should lower the barriers of entry to the crypto asset sector, protect those in the sector and reduce the administrative burden.
Garner recommends engaging with crypto experts to provide vital insights in policy development to ensure that Canada remains an attractive place for crypto investment while protecting those in the cryptoassets sector.
The Canadian Minister of Finance, according to the bill, would have to introduce legislation three years after the bill’s passage.
Garner said in a tweet, “Canada should be attracting billions of dollars in investment in the fast-growing cryptoasset industry. Today I introduced a bill, the first of its kind to make sure this becomes a reality.”
Canada is currently losing cryptoassets talent to Europe and the US, Binance, for instance, announced that it would exit Ontario following regulatory action by the Ontario Securities Commission.
The bill is also motivated by the growing efforts by central banks worldwide. For instance, the Bank of Canada is laying the groundwork to introduce a digital currency should the need for one arise.
Garner, a conservative member, has to garner support across partisan lines for the bill to pass. She recognizes the political polarity existing in regards to the crypto sector and hopes that the parliament can agree on the benefits of providing a framework to encourage the growth of the cryptoasset sector.