Canadian Crypto Leaders Warn of Innovation Exodus Amid Regulatory Fog
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Industry figures argue that jurisdictional disputes and slow implementation of the Stablecoin Act are pushing firms toward the U.S.
Industry leaders at the Blockchain Futurist Conference in Toronto are warning that Canada is losing its competitive edge in the cryptocurrency sector due to a lack of regulatory clarity. According to BetaKit, speakers from the Canadian Securities Exchange (CSE), Shakepay, Grinhaus Law Firm, and Tetra Digital Group argued that domestic innovation is being hampered by jurisdictional friction between federal and provincial regulators.
Richard Carleton, CEO of the CSE and non-executive chair at Tetra, stated that Canada cannot afford to engage in "endless federal-provincial jurisdictional challenges," particularly regarding stablecoins. While the Stablecoin Act received royal assent in March, BetaKit reports the Department of Finance is still developing supporting regulations, with a target date of 2027.
Jasraj Hallan, a Conservative shadow minister for national revenue and MP, told the panel that the federal government should transform the Stablecoin Act into a "workable framework" with a clear registration timeline. Grinhaus founder Aaron Grinhaus warned that without a more favorable regulatory and tax regime, Canada will continue to see an exodus of firms to other jurisdictions, specifically the United States, which is advancing its own legislation via the Digital Asset Market Clarity Act and the GENIUS Act.
Carlo Campisi, head of policy at Shakepay, suggested that Canada has "overindexed" on risk aversion and consumer protection. However, Campisi noted a positive shift via a new OSFI pilot designed to fast-track banking license applications for crypto companies.