Canadian committee proposes support for blockchain, crypto.

Canadian lawmakers in the House of Commons have expressed their support for blockchain technology and cryptocurrencies in a report published by the Standing Committee on Industry and Technology (INDU).

The report, which contains 16 separate proposals, highlights the benefits and potential of blockchain technology in various sectors. As a result of the INDU’s discussions, the committee made recommendations that are included in the report for the consideration of the House of Commons or the government.

Among the recommendations stated in the report, the Government of Canada should recognize blockchain as an emerging industry with significant long-term economic and job creation opportunities. It should prioritize protecting individuals’ right to self-custody and promoting safe and reliable access to digital assets.

Similar to the nation’s efforts to regulate cryptocurrencies, the INDU proposed that the government establish a national blockchain strategy involving experts, entrepreneurs, academics, investors, and the artificial intelligence (AI) industry cluster. The strategy should establish a platform for information exchange and monitoring, analyze promising areas for disruption, advise the government on promising initiatives, and support the government in implementing selected initiatives.

The government should also seek international cooperation in developing blockchain regulations and policies, conduct innovative pilot projects using distributed ledgers, adopt a distinct regulatory approach to stablecoins, promote the establishment of federally regulated cryptocurrency custodians, and provide blockchain firms with access to banking and insurance services.

The report suggests that 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.

Related: Crypto firms promote ‘fictitious’ regulatory stamps, Canadian regulator warns

In order to facilitate the mainstream adoption of blockchain technology, the government should explore ways to promote its use in supply chains and study the new opportunities this technology presents for electronic voting, consultation, and modernization of democratic institutions.

Recently, the Department of Finance proposed legislative changes to the Excise Tax Act, addressing the application of GST/HST to crypto asset mining and remuneration. The INDU proposal recommended that investigations be conducted on equity between provinces in the application of the Excise Tax Act to mining activities and maintained that digital asset mining constitutes a competitive industry.

Magazine: Best and worst countries for crypto taxes — plus crypto tax tips

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