Canadian House of Commons Backs Blockchain

In a report issued by the Standing Committee on Industry and Technology (INDU), members of the Canadian House of Commons expressed their support for blockchain technology and cryptocurrencies.

The report, comprised of sixteen different proposals, highlights the benefits and potential of blockchain technology in various industries.

Due to the INDU’s deliberations, the committee made recommendations included in the report for the House of Commons and the government to consider.

The report recommends that the Canadian government recognize blockchain as an emerging industry with significant economic and employment creation opportunities over the long term.

It is recommended that protecting individuals rights to self-possession and promoting secure and dependable access to digital assets be prioritized.

The INDU proposes that the government establish a national blockchain strategy involving experts, entrepreneurs, academics, investors, and the artificial intelligence (AI) industry, just as the country has pressed to adopt crypto regulations.

The report suggests that the strategy should establish a platform for information exchange and monitoring, analyze promising areas for disruption, advise the government on good initiatives, and provide implementation support.

The report also suggests the government pursue international cooperation in developing blockchain regulations and policies, conduct innovative pilot projects utilizing distributed ledgers, adopt a distinct regulatory approach to stablecoins, promote the establishment of federally regulated cryptocurrency custodians, and provide banking and insurance services to blockchain companies.

According to the report, a public awareness campaign should be launched to educate the public about the risks associated with cryptocurrencies and the benefits of accessing cryptocurrency markets through regulated Canadian entities.

To ensure that blockchain technology enters the mainstream, the committee urges the government to investigate ways to promote the adoption of blockchain technology in supply chains and to study the technology’s benefits for electronic voting, consultation, and the modernization of democratic institutions.

The Canadian Department of Finance recently proposed amendments to the Excise Tax Act regarding crypto asset processing and compensation.

The INDU proposal suggested investigating local equity in applying the Excise Tax Act to mining activities and asserted that digital asset mining is a competitive industry.