The Canadian government will begin a consultation on the risks that digital assets and currencies may pose to the country’s traditional financial system.

See related article: Goldman Sachs launches crypto explainer, trend tool for institutional clients  

Fast facts

  • The Canadian government’s 2022 Fall Economic Statement released by Deputy Prime Minister Chrystia Freeland on Thursday announced “consultations with stakeholders on digital currencies, including cryptocurrencies, stablecoins, and central bank digital currencies.” 
  • The government said that “Canada’s framework for the regulation of our financial system needs to keep pace.”
  • The government said “the digitization of money poses a challenge to democratic institutions around the world,” saying crypto is being “used to avoid global sanctions and fund illegal activities.”
  • These consultations will contribute to the Canadian government’s Budget 2022 initiative to launch a “financial sector legislative review focused on the digitalization of money and maintaining financial sector stability and security.”
  • On Feb. 14, amid protests in Ottawa over the government’s Covid-19 vaccine mandate and restrictions, Prime Minister Justin Trudeau invoked the Emergencies Act for the first time in Canada’s history, authorizing him to freeze protesters’ bank accounts and monitor “large and suspicious transactions,” including crypto. Protestors had received donations of 21 Bitcoin worth approximately US$902,000 at the time.

See related article: Crypto fugitive Do Kwon said to be hiding in Europe, mocks ‘cops from world over’ in a series of tweets