Opinion of: Jillian Friedman, chief of exploitation, symbiotic
From the Canadian federal elections, there has been little clarity in the place where this country is heading with the innovation of digital assets. The regulations and the cryptography policy have not made any of the parties’ campaign platforms. This is a missed opportunity at a time when Canada needs a quick action to find out if it wants to be a competitor in this space or simply a spectator.
Start -up investments are already showing signs of tension.
A recent report by the Canadian Association of Ridden Capital and the Private Equity (CVCA) shows that Canadian seed transactions fell on the bottom of the pandemic era in the first quarter of 2025. The risks of Canada are likely to not adopt the tools to unlock global trade and innovation elsewhere without change of approach. This strongly contrasts with American, European and Asian courts, where regulators act decisively to provide regulatory clarity and deposit the industry.
The recent appointment of Evan Solomon as Minister of Artificial Intelligence and Digital Innovation, a former presenter of news unrelated to the subject, could help accelerate this growth, but only if the Liberals have a wider opinion that allows the construction of companies with modernization technologies such as blockchain. The Canadian government should focus on certain key priority areas.
Connect Canada’s brain leakage
Even if Canada has a disproportionate advantage with high -level institutions, such as the Vector Institute (AI) in Toronto, the Institute for Quantum IT in Waterloo and Mila (AI), technological companies are more and more generally mobile and choose to work everywhere than Canada. Canada has a lot to offer scientific researchers – those looking to market companies have trouble with lack of access to capital and animated tax regimes. The migration of talents between STEM graduates is high, with up to two thirds of graduates in software engineering leaving Canada.
Recent: How central banks test monetary policy based on blockchain
Canada must be creative with a workforce that can work from anywhere. Many tax incentives could help. Portugal offers tax relief to young people and foreign professionals in high -value sectors, including technology and engineering. It is time to explore daring and targeted policies to keep the digital talents anchored here. Canada must try to stop penalizing people who take economic risks and start celebrating entrepreneurs. Canadians need less increase in capital gains and more relief such as sales exemptions from small businesses and incentive Canadian entrepreneurs.
Canada and Stablecoins
Stablecoins are one of the most promising tools to emerge from crypto. They make payments as simple as emails, programmable financial transactions and offer easier market access to prominent fiduciary currencies. Stablecoins allow companies to send global payments instantly to a fraction of the cost of a traditional banking wire.
However, regulators are against this technology, restricting Canadians’ access to Stablecoins. This is also reflected in a failed opportunity to open the Canadian dollar to new world markets with a stablecoin called Canadian dollar. Provincial policies are inconsistent, Canadian securities administrators (CSA) have incorrectly classified stables and federal leaders are absent. If other jurisdictions have understood how to regulate these assets without killing them, Canada can also. Canada has long been a leader in financial services and payments, but restricting this technology is bad for the Canadian dollar and Canadians.
Bank for cryptographic companies
Canadian companies doing something bound to the crypto, even when anti-white (LMA) risk is distant, is still struggling to access basic banks such as deposit accounts, credit cards and payment services. The financial institutions of other G7 countries, subject to LMA regulations similar to Canadian banks, have found ways to deactivate blockchain and cryptographic companies. It’s time for Canadian banks to do the same.
The new financial services in payments, loans and management of cash flows take off elsewhere, but the reluctance of Canadian regulators and the lack of political will hold us.
The position of the previous liberal government towards the crypto varied from disinterest in disdain. Will it be different now?
Opinion of: Jillian Friedman, chief of exploitation, symbiotic.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
