Canada has seen its interest in crypto grow exponentially in recent years. As per a blog post published by Coinbase in collaboration with Angus Reid on 26 March 2025, approximately five million people in Canada hold digital assets in one form or another, solidifying the new financial paradigm shift.
Despite the enthusiasm for crypto, there seems to be a massive disconnect between the existing financial system in the country and the populace residing within.
In the blog post, Coinbase cautioned Canada on the risks of falling behind as the rest of the world races to adopt digital assets and that the upcoming elections in the country represent an opportunity for the nation to consider changing its policies regarding digital assets.
coinbase warning canada not to fumble its leadership position in crypto as election approaches. 5 million canadians already in the space, but exchanges leaving due to messy regulations. they’re pushing for clear rules, bitcoin reserves, and better mining conditions. smart move.
— GabachoBTC (@BtcGabacho) March 27, 2025
As per Coinbase’s survey published in the blog, a staggering 86% of Canadians believe that their financial system requires an update. The survey further revealed that 80% of Canadians find the financial system unfair, while 76% of the responders feel the overall system is out of touch.
Notably, 83% – a majority of the responders – also perceive the financial system to be favoring corporations over individuals.
As it currently stands, Canada does not recognize crypto assets as legal tender, and various authorities fragment oversight of this asset category. The Canadian Securities Administration (CSA) has been working on developing a cohesive digital regulatory framework, but the pace of the regulatory developments is lacking.
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Coinbase Country Director Urges Urgent Regulatory Reforms
Canada is a mixed bag when it comes to its approach towards digital assets. On one hand, the country birthed Ethereum and the first Bitcoin ETF. On the other hand, it took a cautious step and amended the Proceeds of Crime and Terrorist Financing Act (PCA) in 2014 to include entities dealing in cryptocurrencies. While this move highlighted recognition of the emerging sector, it also underscored a perception of cryptocurrencies as a potential threat, resulting in stringent regulatory measures.
Coinbase’s Country Director, Lucas Matherson, has warned the country that without clear and supportive regulations, it risks losing its competitive edge and might become marginalized in the coming years.
A lot of US-based crypto platforms had to exit Canada due to regulatory hurdles after the CSA introduced stricter regulations for exchanges, particularly targeting stablecoins.
The call for clear regulations on crypto is something that is also echoed by the people of Canada, with 72% of Canadians considering regulations of crypto exchanges important. Moreover, during the survey, it was found that a third of them would invest in crypto if the industry were better regulated.
Coinbase, in its report, has laid out several initiatives that Canada must consider undertaking to establish itself as a leader in the global crypto economy. This includes developing comprehensive regulations, fostering public-private collaborations, investing in crypto education and awareness, facilitating research and development, and, most importantly, ensuring tax clarity.
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Coinbase’s Journey in Canada So Far
Even with things currently working against the cryptocurrency sector in Canada, all is not lost yet. Coinbase, recognizing the potential of the Canadian market, has been intensifying its presence in the country. The company officially launched in Canada in 2023 and has expanded its Canadian workforce to over 200 full-time employees.
Also, Canada is now Coinbase’s largest market outside of the US, with the company making serious investments in several Canadian blockchain ventures, including Dapper Labs.
Beyond its business expansion, Coinbase has been actively advocating for crypto reforms through its Stand With Crypto campaign to foster collaboration between Web3 developers, blockchain advocates, and crypto entrepreneurs.
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Key Takeaways
- 72% of Canadians support crypto exchange regulations; 1 in 3 would invest if rules were clearer.
- Public-private collaboration is crucial for crypto innovation.
- 86% of Canadians believe that their financial system requires an update.
The post Coinbase Pushes for Crypto-Friendly Policies in Canada, Emphasizes Reforms To Remain Globally Competitive appeared first on 99Bitcoins.
