With upcoming elections, can Canada's crypto sector follow in its neighbor's footsteps?
Canada’s cryptocurrency industry is taking cues from the United States, where digital assets gained political prominence during the 2024 elections. With former President Donald Trump shifting to a pro-crypto stance and appointing crypto advocates to key roles, Bitcoin surged past $100,000, and the US crypto sector saw a 40% price increase.
A Bloomberg report noted that while Canada’s political landscape lacks the large-scale financial contributions permitted in the US, industry leaders are optimistic about increasing political engagement.
Progress in advocacy
Canadian crypto advocates, including Toronto-based WonderFi Technologies Inc., have observed a shift in receptiveness from policymakers since November. Dean Skurka, CEO of WonderFi, noted, “Conversations are easier to start today than they were over a month ago, and I think that trend will likely continue regardless of the donations.”
Stand With Crypto, an advocacy group instrumental in US election successes, has expanded its efforts to Canada. The organization aims to mobilize grassroots support rather than endorse candidates, a strategy tailored to Canada’s strict political donation regulations.
Challenges and opportunities
Canada’s crypto industry faces hurdles, including stringent regulations introduced in 2023 by the Canadian Securities Administrators. These rules limit the trading of stablecoins and require extensive pre-registration filings for platforms. The regulations have driven companies like Binance and Bybit to exit Canada, with others, including Gemini, planning to follow.
Sophia Cote, head of public policy at Shakepay Inc., emphasized Canada’s evolving regulatory landscape: “For a long time, Canada was quite ahead when it came to crypto regulation. But I think we’ve now reached a very interesting critical juncture where there are still some areas where we have not yet decided how we want to proceed.”
Despite the regulatory challenges, advocates are pushing for reforms, such as integrating crypto into retirement savings plans and tax-free savings accounts, and ensuring the sector plays a role in open banking.
Looking ahead
The next federal election, due by October 2025, could present an opportunity for the crypto industry to amplify its message. With Prime Minister Justin Trudeau’s minority government at risk of being toppled by a no-confidence vote, an early election is possible, Bloomberg noted.
Lucas Matheson, CEO of Coinbase Canada, stressed the urgency for Canada to remain competitive: “There are significant changes coming in how the US government and citizens in the US take advantage of the digital economy. It’s incredibly important that Canadians don’t miss out.”
Recent increases in crypto trading volumes and sign-ups on Canadian platforms highlight growing interest. Advocates hope these trends, coupled with US advancements, will push Canadian policymakers to embrace the digital asset economy.
“Crypto is here to stay,” Matheson told Bloomberg. “The US elections cemented crypto in the history books and paved a path for every country around the world to start thinking deeply about how they will advance their own personal strategies.”
