Why Is Canada Canning Crypto while Everyone Else Moves Ahead?

Canada is one of the few major economies still treating crypto like it’s an afterthought. Since the last federal election, the government has offered no real direction on digital assets. Crypto didn’t even get a mention in party platforms, which feels like a massive oversight when the global race for digital finance leadership is well underway.

Jillian Friedman, COO at Symbiotic, wrote in Cointelegraph this week that “Canada needs swift action” to decide whether it wants to compete or sit on the sidelines. So far, it’s leaning toward the latter.

Venture Funding in Canada Collapses to Pandemic Lows

If you’re looking for early signs of fallout, start with startup capital. A recent report from the CVCA shows Canadian seed-stage funding has dropped to levels not seen since the height of COVID-era uncertainty.

Other regions are moving in the opposite direction. The U.S., Europe, and Asia are actively working on regulatory frameworks to support blockchain innovation. Meanwhile, Canada is stuck watching deals slip away.

Brain Drain Worsens as Tech Talent Heads for the Exit

Canada has some of the world’s top AI and quantum research institutions — think MILA, Vector Institute, and the Institute for Quantum Computing — but it’s struggling to keep talent.

Two-thirds of software engineering grads are reportedly leaving the country, drawn to better funding, lower taxes, and more welcoming policies elsewhere. Portugal, for example, offers tax breaks for skilled tech workers. Canada? Mostly red tape and rising capital gains taxes.

Stablecoin Policy Signals Regulatory Paralysis

Canada’s regulators still treat stablecoins like securities, effectively blocking their use. That’s a missed opportunity to modernize the Canadian dollar for global payments and trade.

Other countries have figured out how to regulate without killing innovation. Canada’s refusal to do the same puts it at a competitive disadvantage — and risks losing its long-held reputation as a financial leader.

Crypto Businesses Still Can’t Get a Basic Bank Account

Even blockchain startups with no Anti-Money Laundering (AML) risk profile can’t get basic banking in Canada. Credit cards? Deposit accounts? Payment services? Still out of reach.

Meanwhile, G7 peers have figured out how to de-risk the sector without blanket bans. Canada’s inaction isn’t caution — it’s stagnation. And the longer it lasts, the harder it will be to catch up.

As other economies push forward with Web3 infrastructure and policy clarity, Canada is slowly pricing itself out of the future. Without leadership, without updated laws, and without banking access, the country risks falling behind permanently.

Crypto isn’t waiting. Why is Canada?

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