Canadian House of Commons Committee Urges to Embrace Blockchain Technology

A report from a committee within the Canadian House of Commons urges the nation to acknowledge the rising significance of blockchain as an emerging industry and to strategize accordingly.

The report, issued by the Standing Committee on Industry and Technology of the Canadian House of Commons, emerged following a comprehensive study that incorporated five meetings, numerous briefs, and several witnesses.

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The report details various applications of blockchain technology, spanning from cryptocurrencies and supply chain innovations to public sector utilization and non-cryptocurrency financial advancements.

According to the report, one witness testified that Canada "punches above its weight" in terms of blockchain innovation and entrepreneurial initiatives. It was revealed that in 2021, a noteworthy 2.5% of Canada's large corporations utilized blockchain technology, a figure that was less than 1% for smaller and medium-sized businesses.

The blockchain sector reportedly employed around 16,000 Canadians in 2020, with an estimated 13,000 Canadians working for cryptocurrency firms in 2022.

The report also discussed the current state of cryptocurrency trading platform regulation, with a view from witnesses that these platforms are regulated enough to protect consumers from the risks seen within foreign crypto-related entities. 

The demise of the Canadian QuadrigaCX trading platform in 2019 was pinpointed as the trigger for regulatory actions. The report states:

This increased interest by Canadian regulators is broadly <in> line with developments in other jurisdictions.

Highlighting the prevalence of scams targeted at individuals looking to enter the crypto market on a small scale, the report brings attention to an issue often overshadowed by larger-scale controversies. 

The report proposes that Canada "recognize" the role of blockchain within the nation's economic structure. Before doing that, the report underlined the need for more regulatory clarity and advised that the government develop a national strategy in collaboration with industry players.

The report recommends Canada fully embrace and strategize for the rapidly growing blockchain industry to maximize its potential benefits and mitigate the risks.

It is worth noting that recently, following strict regulations in Canada, several crypto-related firms, including Binance, Bybit, and OKX, exited Canadian crypto markets.