Canada lags with stablecoin approach, but there’s room to catch up

Crypto industry observers in Canada are concerned that their industry is being left behind without a clear framework for stablecoins.

The slow adoption of stablecoins in Canada has some local crypto industry observers concerned that the country is falling behind.

The Canadian Securities Administrators (CSA) classified stablecoins as “securities and/or derivatives” in December 2022 after the FTX debacle that shook markets and turned many lawmakers against the crypto industry.

Regulating stablecoins as a security has seen few local stablecoin issuers arise, but in the United States and the European Union, softening regulations have seen significant growth in the stablecoin market. This makes Canada, observers say, less competitive with other jurisdictions. 

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