[SERIOUS] Bill C-249: Encouraging Growth of Crypto Sector Defeated (Canada)

The Bill was first read on February 9th, 2022 after being brought forward by Michelle Rempel Garner) (Calgary Nose Hill-C).

The bill was hoped to direct members of the federal government to develop a framework to allow cryptocurrencies to be developed and researched in Canada.

This enactment requires the Minister of Finance to develop a national framework to encourage the growth of the cryptoasset sector and, in developing the framework, to consult with persons working in the sector who are designated by provinces and territories. The enactment also provides for reporting requirements in relation to the framework.

To quote Hon. Garner during the first reading,

• … right now, Canada should be attracting billions of dollars of investment in the fast-growing cryptoasset industry…
• we are seeing government officials discuss and set policy related to cryptoassets…
• many officials and lawmakers are not deeply familiar with what cryptoassets are, how they function or their big potential for economic growth…
• Canada needs to ensure cryptoasset experts and investors are telling us what policy they need or what policy they do not need…
• require the Minister of Finance to formally ensure their voices help lead policy development… develop a framework using their expertise that would ensure Canada attracts investments and talent related to cryptoassets while protecting those who work with them…
• create a mechanism to formally engage the expertise of cryptoasset innovators and investors in policy development and create a framework for growth

All in all, it would have directed the government to take guidance from experts in the sector, to develop a framework that would allow this industry to flourish in Canada.

Bill C-249 was defeated on November 23rd, 2022. 119 members of the House of Commons supported the Bill, while 199 were against it.

I think it would have been great to have the government get behind crypto growth in Canada. It’s likely that any decisions made by government regulating the industry will be created with limited input from experts.

The current federal Minister of Finance is Chrystia Freeland (University-Rosedale, Lib). She has been vocal against crypto investments in the past (video). However, the 2022 Fall Economic statement (Nov 3rd, 2022) describes Addressing the Digitalization of Money saying,

• … Budget 2022 announced the government’s intention to launch a financial sector legislative review focused on the digitalization of money and maintaining financial sector stability and security. - Consultations with stakeholders on digital currencies, including cryptocurrencies, stablecoins, and central bank digital currencies, are being launched on November 3, 2022.

It is worth pointing out that the second reading of Bill-249 was defeated after Budget 2022 was released. It’s unclear to me why C-249 was defeated just to have the minority Liberals (and NDP) just include consultations with stakeholders in the Budget.

Regarding consultations, the a Government of Canada says,

• … digitalization of money to maintain financial sector stability and security in the face of digital assets and cryptocurrencies being used to avoid global sanctions and fund illegal activities.
• … Department of Finance is launching targeted consultations with stakeholders on digital currencies, including cryptocurrencies, stablecoins, and central bank digital currencies.
• Canadians can also send their comments to [email protected]. This will help inform future policy development, as well as further and broader public consultations on this matter.

So, if you’re Canadian you can send comments to the above email address. The government will make a decision, and it’s up to you if you want to be heard in the process.