Canada to wait until 2020 for cryptocurrency regulations update

  • The June 2018, regulations draft proposed stricter rules and guidelines for the crypto industry.
  • Some parties see the delay as a way for the government to come up with favorable guidelines for the rapidly growing industry.

The government of Canada has delayed the update on crypto regulations from this fall until 2020. The delay is a result of the general elections expected in the country in 2019. Moreover, once the regulations are updated, it will take a period of 12 months for them to become effective.

There was a draft of the crypto/blockchain regulation in June of 2018. The draft proposed stricter rules and guidelines for the crypto industry. The current news has been received both positively and negatively. Some parties see the delay as a way for the government to come up with favorable guidelines for the rapidly growing industry while other believe that Canada is likely to lose its competitive edge.

Bitcoin Magazine reported that the Blockchain Association of Canada (BAC) said that the delay is good news for the digital asset economy. BAC’s Executive Director Kyle Kemper reckoned that “It may be best to observe and intervene as little as possible.”

Other experts believe that the draft release in June received enormous feedback and the government is likely to have decided to amend the draft before the bill is amended. The feedback came from several blockchain-based organizations in the country. The Finance Canada officials must have heard the voiced concerns from the participants in the discussions held in the wake of the draft.

One notable report was from the Toronto-based Blockchain Research Institute (BRI). The institution called for a “middle ground” when it comes to regulations, but also said that the guidelines are vital for the development of the industry. The institute included the input from 70 other participants who all agreed that excessive regulations is a way stifling innovation in the blockchain industry.

 

 


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