Coinbase Advocates for Crypto-Supportive Regulations in Canada, Stresses the Need for Reforms to Stay Globally Competitive

Interest in digital currency has surged in Canada in recent years. According to a blog post published by Coinbase in collaboration with Angus Reid on 26 March 2025, around five million Canadians own digital assets in various forms, reinforcing the shift towards a new financial paradigm.

While there is considerable enthusiasm for crypto, a significant gap exists between the financial system currently in place and the needs of the population.

In the blog, Coinbase warned Canada of the dangers of lagging behind as other nations rapidly embrace digital assets, stating that the upcoming elections present a chance for the country to reevaluate its policies concerning digital assets.

coinbase warnings for canada to maintain its leadership role in crypto as elections draw near. five million canadians are already participating, but exchanges are departing due to complicated regulations. they’re advocating for defined rules, Bitcoin reserves, and improved crypto mining conditions. a wise decision.

— GabachoBTC (@BtcGabacho) March 27, 2025

According to Coinbase’s survey shared in the blog, an astonishing 86% of Canadians think their financial system needs an upgrade. The survey further indicated that 80% of Canadians view the financial system as unjust, and 76% of respondents feel the overall system is disconnected from their needs.

Importantly, 83% — a majority of respondents — also see the financial system as benefiting corporations more than individuals.

Currently, Canada does not classify crypto assets as legal tender, and oversight of this asset class is disjointed among various authorities. The Canadian Securities Administration (CSA) has been striving to create a unified regulatory structure for digital assets, but the speed of these regulatory advancements is inadequate.

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Coinbase Country Director Calls for Urgent Regulatory Changes

Canada’s stance on digital assets is somewhat inconsistent. On one hand, it is the birthplace of Ethereum and the first Bitcoin ETF. On the other hand, it took a conservative approach by amending the Proceeds of Crime and Terrorist Financing Act (PCA) in 2014 to include players in the cryptocurrency space. While this action acknowledged the emerging sector, it also implied a view of cryptocurrencies as a possible threat, leading to stricter regulations.

Lucas Matherson, Coinbase’s Country Director, has alerted the country that without clear and constructive regulations, it risks sacrificing its competitiveness and could find itself sidelined in the future.

Many US-based crypto platforms have exited Canada due to regulatory challenges after the CSA enforced stricter rules on exchanges, especially concerning stablecoins.

The market demand for transparent regulations regarding crypto is a sentiment echoed by the Canadian populace, with 72% of Canadians considering the crypto law of crypto exchanges crucial. Additionally, during the survey, it was discovered that a third of participants would engage in crypto investment if the industry was better regulated.

In its report, Coinbase has outlined several steps that Canada should undertake to position itself as a leader in the global market. These include formulating comprehensive regulations, promoting public-private partnerships, investing in crypto education and awareness, facilitating research and development, and, crucially, ensuring tax clarity.

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Coinbase’s Progress in Canada So Far

Even though there are currently challenges facing the cryptocurrency sector in Canada, the situation isn’t hopeless. Recognizing the potential of the Canadian market, Coinbase has been amplifying its presence there. The company officially entered the Canadian market in 2023 and has increased its Canadian workforce to over 200 full-time staff.

Moreover, Canada has now become Coinbase’s largest trading market outside the US, as the company invests significantly in several Canadian distributed ledger initiatives, including Dapper Labs.

In addition to its business expansion, Coinbase has been actively promoting crypto reforms through its Stand With Crypto campaign to encourage partnership among Web3 developers, distributed database supporters, and crypto entrepreneurs.

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The post Coinbase Pushes for Crypto-Friendly Policies in Canada, Emphasizes Reforms To Remain Globally Competitive appeared first on 99Bitcoins.