Canada’s global economic position at risk without crypto reforms, Coinbase warns

As Canada prepares to vote, Coinbase is calling on the next government to take crypto seriously, warning that without clear regulations, the country could lose its competitive edge.

As Canada approaches a federal election, the country’s crypto future hangs in the balance, with Coinbase‘s Canadian country director Lucas Matheson warning that while the country has been a leader in the industry, it risks falling behind and becoming less integrated into the global digital economy.

In a Wednesday blog post, Matheson pointed to an estimated five million Canadians who already hold crypto, saying that “86% of Canadians agree their financial system could use an update.” Many also feel the system “is not fair for everyone (80%) and is out of touch (76%),” he added.

In early March, crypto.news reported that the former Bank of England Governor Mark Carney will replace Justin Trudeau as the Liberal Party’s leader and Prime Minister of Canada.

Carney’s victory is hardly good news for the local crypto community as he’s been skeptical toward Bitcoin (BTC) and has shown a preference for central bank digital currencies, taking a different approach from the one gaining traction in the U.S.

Regulatory hurdles have also driven several crypto exchanges, including U.S.-based platforms, to exit Canada after the Canadian Securities Administrators introduced stricter requirements for crypto trading platforms, particularly targeting stablecoins.

Now, Coinbase is calling on the next government to introduce “clear, innovation-friendly regulatory reform.” The company’s proposals include launching a government crypto task force within 100 days, establishing a Bitcoin reserve, and implementing federal stablecoin regulations. It also wants clearer definitions for digital assets, fewer barriers for crypto mining, and rules allowing banks to hold and use crypto.