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 reports for the consideration of the House of Commons or the government.
As part of the recommendations stated in the report, the Government of Canada should recognize blockchain as an emerging industry with significant long-term economic and job creation opportunities. It should prioritize protecting individuals’ right to self-custody and promoting safe and reliable access to digital assets.
Just as the nation pushed for its crypto regulations, The INDU proposed that the government establish a national blockchain strategy, involving experts, entrepreneurs, academics, investors and the artificial intelligence (AI) industry cluster. The strategy should set up a platform for information exchange and monitoring, analyze promising areas for disruption, advise the government on promising initiatives and support the government in implementing selected initiatives.
The government should also 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 established to educate the public about risks related to cryptocurrencies and the benefits of accessing cryptocurrency markets through regulated Canadian entities.
In a bid to ensure that blockchain technology becomes mainstream, the government should investigate ways to promote the adoption of blockchain technology in supply chains and study the new opportunities this technology presents for electronic voting, consultation and modernization of democratic institutions.
Recently the Department of Finance proposed legislative changes to Excise Tax Act, addressing GST/HST application to crypto asset mining and remuneration. The INDU proposal recommended that there should be investigations on equity between provinces in the application of the Excise Tax Act to mining activities and maintained that digital asset mining constitutes a competitive industry.