A report by a Canadian House of Commons committee recommended that the country “recognize blockchain as an emerging industry” and take whatever steps that entails. Many steps are needed, he said.

The message was released By the Canadian House of Commons Standing Committee on Industry and Technology after a study that included five meetings and a series of witnesses and briefs. The report outlined blockchain uses that included cryptocurrencies, supply chain and public sector uses, and non-crypto financial innovations.

“Canada punches above its weight” in blockchain innovation and entrepreneurial capacity, one committee witness said. In 2021, 2.5% of large businesses in Canada used blockchain, compared to less than 1% of SMEs. The witnesses estimated that 16,000 Canadians were employed in the blockchain industry in 2020, and the witnesses estimated that cryptocurrency firms employed 13,000 Canadians in 2022.

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Citing witnesses, the report said that “cryptocurrency trading platforms are sufficiently regulated to protect consumers from risks emerging from foreign platforms.” She credited the collapse of Canadian trading platform QuadrigaCX in 2019 for prompting regulators to take action. The message continues:

“This increased interest from Canadian regulators is widespread [in] in line with developments in other jurisdictions.”

The report also noted that while large-scale issues have received the most media attention, consumers looking to enter the crypto market on a small scale are also often targeted by bad players.

A House of Commons committee says blockchain could create “significant long-term economic and job creation opportunities in Canada,” but experts say Ottawa has a lot of work to do if it wants to harness the technology’s potential and avoid downsides. https://t.co/D04vrjVDaC

— CBC News (@CBCNews) July 8, 2023

The report recommended that Canada “recognize” the role of blockchain in the country, leading to 15 other recommendations. The report says greater regulatory clarity is needed and the government should work with industry stakeholders to formulate a national strategy. The report specifically mentioned the regulation of stablecoins, noting that even the committee’s witnesses could not agree on whether stablecoins are securities.

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