In a recent move that showcases Canada’s support for blockchain technology and cryptocurrencies, the Parliamentary Standing Committee on Industry and Technology (INDU) of the Canadian House of Commons has released a comprehensive report endorsing the potential and advantages of blockchain across various sectors. The report, comprising 16 distinct proposals, includes recommendations for the consideration of the House of Commons and the government.
One of the key recommendations in the report is for the Government of Canada to officially recognize blockchain as an emerging industry with substantial long-term economic prospects and job creation opportunities. Additionally, the report emphasizes the importance of safeguarding individuals’ right to self-custody while promoting secure and reliable access to digital assets.
The INDU proposes the establishment of a national blockchain strategy, involving a collaborative effort among experts, entrepreneurs, academics, investors, and the artificial intelligence (AI) industry cluster. This strategy would serve as a platform for information exchange, analysis of disruptive areas, advisory services to the government, and support for the implementation of selected initiatives.
Furthermore, the report suggests that the government should actively pursue international cooperation in developing blockchain regulations and policies. It recommends conducting innovative pilot projects utilizing distributed ledgers, adopting a distinct regulatory approach to stablecoins, promoting federally regulated cryptocurrency custodians, and facilitating access to banking and insurance services for blockchain firms.
To ensure widespread adoption of blockchain technology, the report advocates for a public awareness campaign aimed at educating the public about the risks associated with cryptocurrencies and the benefits of accessing regulated Canadian entities for cryptocurrency market participation.
Additionally, the government should explore opportunities for blockchain adoption in supply chains and investigate its potential for electronic voting, consultation, and the modernization of democratic institutions.
In line with recent developments, the Department of Finance has proposed legislative changes to the Excise Tax Act concerning the application of Goods and Services Tax/Harmonized Sales Tax (GST/HST) to crypto asset mining and remuneration.
The INDU’s proposal suggests further investigation into equity between provinces regarding the application of the Excise Tax Act to mining activities, emphasizing that digital asset mining represents a competitive industry.
Overall, this report reflects Canada’s commitment to fostering blockchain innovation and embracing cryptocurrencies. By recommending the adoption of a national strategy and establishing supportive regulations and policies, Canadian lawmakers aim to position the country at the forefront of the blockchain revolution, unlocking its vast potential for economic growth and technological advancement.
