Canada’s government has effectively put the release of new cryptocurrency regulations on hold until 2020 instead of updating them this fall.
The federal government in Canada is preparing for the 2019 general election which has caused it to delay the release of the regulations until after this has taken place, and with a 12-month waiting period for new regulations to go into effect, they will not be active until 2020.
Mixed responses
A draft version of the regulations was shared with the public in June in which stricter controls on the cryptocurrency industry were outlined. Some have taken the delay as a positive sign that the government may be looking to review what they interpret as unfavorable conditions, while others have shared concerns that the decision may harm Canada’s competitive edge in the growing industry.
The Blockchain Association of Canada (BAC) spoke to Bitcoin Magazine, saying that this should be perceived as a good thing for the Canadian blockchain and cryptocurrency sectors, and shared its confidence in the government’s agenda. ”It may be best to observe and intervene as little as possible,” BAC’s Executive Director Kyle Kemper added.
Several participants have reportedly said that the vast amount of quality feedback to the June draft halted the government from implementing the bill before making amendments. A number of the country’s blockchain companies and organizations were part of a discussion with Finance Canada officials in which they were able to vocalize their own opinions of the drafted regulations.
The Toronto-based Blockchain Research Institute (BRI) shared a report with government officials that included input from 70 industry participants, calling for a ”middle ground” on regulations. While they recognized a substantive regulatory framework was required in order for Canada to remain competitive, too strict governance could well stifle innovation from the sector.
If input from key industry figures has been the main factor in causing the delay, local blockchain businesses should rest assured the next draft should reflect changes in their favor.
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