After the Canadian federal election, there are concerns that a clear direction for digital asset innovation is still lacking. Cryptocurrency regulations and policies were not even mentioned in the campaign promises of major parties, which demonstrates that Canada is missing opportunities at a time of fierce global competition. There are warnings that such a passive approach will leave Canada as a 'spectator' rather than a 'competitor' in this field.
Venture investment has already been impacted. According to the Canadian Venture Capital and Private Equity Association (CVCA), early-stage investment in Canada in the first quarter of 2025 has dropped to pandemic levels. This is in stark contrast to major countries like the United States, Europe, and Asia, which are accelerating regulatory improvements and lowering industry entry barriers.
Recently, Evan Solomon, a former news anchor, was appointed as the Minister of AI and Digital Innovation, showing signs of change in the Canadian government. However, there are concerns that this could remain a symbolic measure without a shift in policy and perspective. Voices are growing louder that the government should focus on creating practical infrastructure to allow companies based on advanced technologies, including blockchain, to grow freely.
To secure digital technology talent, the 'brain drain' problem must first be addressed. Despite having world-class institutions like the Vector Institute for AI in Toronto, the Quantum Computing Institute in Waterloo, and MILA in Montreal, talented individuals looking to build technology-based startups are leaving the country due to lack of funding and complex tax systems. Statistics show that about two-thirds of software engineering graduates leave Canada. Instead of punishing entrepreneurs through taxes, there are calls to recognize their 'economic risk-taking' and strengthen practical support measures such as tax deductions. Like Portugal's tax benefits for young technical talent, Canada should implement bold attraction policies.
The future of 'stablecoins' looks bleak amid government indifference. Stablecoins can process payments as easily as email, enable programmable financial transactions, and dramatically reduce global payment costs. However, Canadian regulatory authorities are misclassifying them as securities, effectively blocking access to new financial flows. Canada is missing the opportunity to connect its national currency to the global market through a Canadian dollar-based stablecoin. If Canada, which once prided itself as a financial powerhouse, turns its back on technological development, this will ultimately negatively impact the status of the Canadian dollar.
There are also serious issues with cryptocurrency-related companies' access to financial services. Even projects with low anti-money laundering (AML) risks cannot obtain basic bank accounts, cards, or payment services. Other G7 countries are finding ways to coexist with blockchain companies while complying with AML regulations. The Canadian financial sector must also be ready to accept change.
Ultimately, Canada's problem is not a lack of regulation, but the absence of 'political will' to create regulations. The previous Liberal government showed indifference or a negative attitude towards cryptocurrencies, and it remains unclear whether the current government will be different. As the world moves towards financial innovation, Canada desperately needs bold policy shifts and regulatory improvements to avoid becoming a loser.
Get news in real-time...Go to Token Post Telegram
<Copyright ⓒ TokenPost, unauthorized reproduction and redistribution prohibited>
