Canadian Lawmaker Calls for Crypto Regulatory Framework

Late last year, the Bank of England highlighted the need for a global crypto regulatory framework. At the time, the UK’s central bank had raised concerns over the crypto market and financial stability. Since then, the crypto market has seen a snowball effect. Governments from around the world have stepped forward aligned with the Bank of England on the need for a framework.

Increased regulatory scrutiny has also led to a marked increase in regulatory activity. The focus has not just been on crypto exchanges and illicit activity, but also crypto mining, NFTs, and the Metaverse.

Even rating agencies, the International Monetary Fund and, the U.S Inland Revenue Services have joined what appears to be a growing united front.

The White House Executive Order

At the turn of the year, countries including India, South Korea, the UK, the U.S, and even Canada have taken some form of action against the crypto sector.

Amidst the heighted activity, the White House recently announced the imminent release of an Executive Order on cryptos. The order will task agencies with the regulation of cryptos as a matter of national security. Not only covering cryptos, but other digital assets, agencies will also have to work with regulators globally. The order could become the blue print for a global crypto regulatory framework.

With the U.S administration’s stance on crypto mining and surge in illicit activity across the crypto market, the framework could prove to be a rigid one.

Canadian Lawmaker Proposes Favorable Cryptoasset Bill

Following recent news on the Ontario Securities Commission and crypto exchanges, a Canadian lawmaker reportedly introduced a Bill this week to create a regulatory framework.

Bill C-249 would require Canada’s Minister of Finance to consult with designated crypto exports across each province. While a number of regulators are looking to clamp down on crypto activity, the Bill is looking to support crypto sector growth. The proposed Bill would achieve this by ensuring that lawmakers are well-versed with the crypto market before making policy decisions.

The Bill is titled “An Act Representing the Encouragement of the Growth of the Cryptoasset Sector”. The Bill acknowledges that cryptoassets have a significant economic and innovative potential for Canada. The purpose of the Bill is to focus policy “on lowering barriers to entry into the sector, protect those working in the sector, and minimize administrative burden”.

Should the Bill come into law, Canada would become one of a few openly supporting growth in the cryptoasset sector.