The Canadian government has effectively delayed the release of its final regulations for the cryptocurrency and blockchain industry until 2020. The regulations were due to be published before the end of this year, but have been put on hold as the government goes into in pre-election mode in preparation for the 2019 election.
Now, due to a 12-month waiting period after regulations are published in the Canada Gazette in 2019, they won’t come in to effect until late 2020.
In June this year, a draft version of the regulations which outlined stricter controls on the cryptocurrency industry was made available for public comment.
According to a Nasdaq report, some crypto companies consider the delay as a positive for the industry’s competitiveness, as the government appears to be turning away from the stricter rules proposed in June.
However, other companies have expressed concerned that the delay will reduce their competitive advantage in the fast-moving international crypto industry.
The Blockchain Association of Canada (BAC) Executive Director Kyle Kemper spoke to Bitcoin Magazine, saying that, “it may be best to observe and intervene as little as possible”.
“The decision to delay the proposed regulations bodes well for the Canadian blockchain and cryptocurrency space. The government is committed to an innovation agenda and sometimes… it may be best to observe and intervene as little as possible,” added Kemper.
The Toronto-based Blockchain Research Institute (BRI) has released a report that includes input from 70 industry participants, the report calls for a “middle ground” on crypto regulations, saying that “as the blockchain revolution unfolds, regulators would be wise to avoid the chainsaw when microsurgery could do. To be sure, we do not want the Wild West,” reported Nasdaq.
The BRI report also noted that a substantive regulatory framework would help to keep Canada competitive in the global industry.