Coinbase Warns: Canada's Economic Status May Deteriorate Without Cryptocurrency Regulation

Coinbase has issued a rallying cry to the incoming Canadian government, urging them to prioritize crypto regulation or risk losing their competitive advantage as the nation prepares to go to the polls.

With the federal election looming, Lucas Matheson, Coinbase's Canadian country director, has warned that Canada's status as a crypto industry leader could be at risk if the country fails to establish clear regulations. This could result in Canada becoming less integrated in the global digital economy.

In a blog post on Wednesday, Matheson pointed to the five million Canadians who already own crypto, noting that "86% of Canadians believe their financial system needs an update." Many Canadians also feel that the current system is "unfair for everyone (80%) and out of touch (76%)."

In March, crypto.news reported that the former Bank of England Governor Mark Carney is set to replace Justin Trudeau as the Liberal Party's leader and Prime Minister of Canada.

However, this is not good news for the local crypto community as Carney has expressed skepticism toward Bitcoin (BTC) and has shown a preference for central bank digital currencies. This approach is different from the one gaining traction in the U.S.

Regulatory obstacles have also forced several crypto exchanges, including U.S.-based platforms, to exit Canada after the Canadian Securities Administrators introduced stricter requirements for crypto trading platforms, particularly targeting stablecoins.

Now, Coinbase is urging the next government to implement "clear, innovation-friendly regulatory reform." The company's proposals include establishing a government crypto task force within 100 days, creating a Bitcoin reserve, and implementing federal stablecoin regulations. Coinbase also wants clearer definitions for digital assets, reduced barriers for crypto mining, and regulations that allow banks to hold and use crypto.