Coinbase Calls for Increased Legislative Engagement to Strengthen Canada's Crypto Framework
Summary:
Lucas Matheson, Coinbase's director in Canada, calls for greater legislative engagement with the crypto industry to build a stronger regulatory framework, despite Canada's collaborative approach. While regulatory environments have prompted some exchanges like Binance and Bybit to cease operations in Canada, Coinbase achieved steady progress after its launch in August 2023. The firm sees Canada's stringent regulatory landscape as an opportunity to build trust with regulators, the public, and the government. Canada plans to impose new tax reporting obligations for digital asset entities by 2026.
Lucas Matheson, who heads Coinbase's cryptocurrency exchange operations in Canada, observed that Canadian legislators have shown lesser involvement with the sector compared to other regulatory settings. During his conversation with Cointelegraph at the Collision conference in Toronto on June 18, he highlighted that Canadian authorities had been more cooperative than their counterparts in the U.S. However, Canada, according to the Coinbase chief, lacks substantial political commitment from legislators. He noted, "In many parts of the globe, political leaders often devise long-term strategic blueprints to integrate digital assets and technology into their economic structures. Our aim is to deepen our collaboration with the federal politicians and parliament members to ensure a robust regulatory framework exists in Canada." During the June 18th Collision conference panel, Cointelegraph's Sam Bourgi, Lucas Matheson, and others were present.
In related news, 39% of Canada’s institutional investors are indirectly involved in cryptocurrencies as per KPMG. Although there has been limited engagement, according to the Coinbase's Canadian director, one standout is the regulation of stablecoins, where the digital currency industry "has partnered closely with the federal government and regulatory bodies." However, a few crypto exchanges, such as Binance and Bybit, have halted their operations in Canada due to the regulatory landscape there. Matheson added that "Despite the strict regulatory framework in Canada, it's an excellent environment for us to develop trust with the regulators, the public, and the government." Coinbase commenced operations in Canada in August 2023 and has been progressively navigating the country’s regulatory landscape since then. The company procured a restricted dealer's license there in April, with the authorities also awarding an international dealer's license to its Canadian division. By 2026, Canada aims to adopt international Crypto-Asset Reporting Framework for tax purposes, imposing new tax reporting obligations on crypto exchanges and other firms dealing with digital assets. An interesting observation is that crypto voters are already influencing the 2024 elections — a trend that is predicted to continue.
Published At
6/19/2024 12:00:00 AM
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