Opinion: Gillian Friedman, Chief Operating Officer of Symbiotics
Since the federal election of Canada, little has been clear as to where the country is heading towards digital assets innovation. Cryptocurrency and policies did not appear on any of the parties’ campaign platforms. It’s an opportunity to miss out on a time when Canada needs quick action on whether it wants to be a competitor in this space or simply be a bystander.
Early stage investments already show signs of tension.
A recent Canadian Venture Capital and Private Equity Association (CVCA) report shows Canadian seed trades fell to pandemic-era lows in the first quarter of 2025. This is in stark contrast to the US, Europe and Asia jurisdictions where regulators are taking crucial action to provide regulatory clarity and remove the industry.
The appointment of Evan Solomon as Minister of Artificial Intelligence and Digital Innovation as a former news anchor with no obvious connection to the topic could help accelerate its growth. The Canadian government should focus on several key priority areas.
Plug Canadian brain drain
Canada has great advantages for top-tier institutions like the Vector Institute (AI) in Toronto and the Quantum Computing Institute at Waterloo and Mira (AI), but tech companies are increasingly becoming globally mobile and choosing to work from anywhere outside Canada. There is a lot to scientific researchers in Canada. Those seeking to commercialize their businesses suffer from a lack of access to capital and awkward tax systems. The talent transition for STEM alumni is high, with two-thirds of software engineering alumni leaving Canada.
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Canada needs to be creative with a workforce that allows them to work from anywhere. Many tax incentives can be useful. Portugal will provide tax cuts to young people and foreign experts in the high value sector, including technology and engineering. This is the time to explore bold, targeted policies to pinpoint digital talent. Canada must try to stop fines for people taking financial risks and start celebrating entrepreneurs. Canadians need more relief, including reduced capital gains tax increases and sales exemptions for small businesses and incentives for Canadian entrepreneurs.
Canada and stablecoins
Stablecoins is one of the most promising tools for emergence from cryptography. They make payments as simple as email, make financial transactions programmable, and make market access to well-known Fiat currency. Stablecoins allow businesses to send instant global payments at just a small fraction of the cost of traditional bank wires.
However, regulators are opposed to the technology, restricting Canadians’ access to stubcoins. This also means that the Canadian Dollar missed the opportunity to open the Canadian Dollar with religiously religious and ridiculous stubcoins into a new global market. Provincial policies are inconsistent, and Canadian Securities Managers (CSAs) mistakenly classify stability as securities, with no federal leadership. If other jurisdictions find a way to regulate these assets without killing them, Canada can do so too. Canada has long been a leader in financial services and payments, but limiting this technology is bad for Canadian dollars and Canadians.
Banking business in crypto business
Canadian companies are struggling to access basic banks such as deposit accounts, credit cards and payment services, even when Money Laundering Anti-Money Laundering (AML) is remote. Financial institutions in other G7 countries, subject to AML regulations similar to Canadian banks, have found ways to eliminate risky blockchain and crypto businesses. It’s time for Canadian banks to do the same.
New financial services in managing payments, lending and cash flows are held elsewhere, but the silence and lack of political will of Canadian regulators are hindering us.
Previous liberal government stances on cryptography ranged from indifference to lighthearted. Is it different now?
Opinion: Gillian Friedman, Chief Operating Officer of Symbiotics.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph’s views and opinions.
