Canada’s authorities argued that this is a vital step since the digitalization of money has transformed the global financial system. They also believe cryptocurrencies could fuel criminal affairs and are used by wrongdoers to bypass sanctions:

In order to help address these challenges in Canada, Budget 2022 announced the government’s intention to launch a financial sector legislative review focused on the digitalization of money and maintaining financial sector stability and security.”

Bank of Canada’s Stance
The central bank of the North American country has urged the government to enforce rules on the industry numerous times.

Senior Deputy Governor Carolyn Rogers opined in June that the step needs to be completed as soon as possible since the asset class evolves and attracts more investors. In her view, some individuals are unaware that they might lose their entire investment when entering the ecosystem.

“This is an area that is still small, but it’s growing really rapidly. We don’t want to wait until it gets a lot larger before we bring regulatory controls in place,” she alerted.