Introduced as a private member’s bill. (These don’t often become law.)
Status
Defeated, as of Nov. 23, 2022 (This bill did not become law.)
Summary
This is from the published bill.
This enactment requires the Minister of Finance to develop a national framework to encourage the growth of the cryptoasset sector and, in developing the framework, to consult with persons working in the sector who are designated by provinces and territories. The enactment also provides for reporting requirements in relation to the framework.
Elsewhere
All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.
Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-249s:
C-249 (2020)
An Act to amend the Canada Transportation Act (refund – cancelled air service)
C-249 (2016)
An Act to amend the Public Health Agency of Canada Act (National Alzheimer Office)
C-249 (2013)
An Act to amend the Excise Tax Act (no GST on the sale of home heating fuels)
C-249 (2011)
An Act to amend the Excise Tax Act (no GST on the sale of home heating fuels)
Votes
Nov. 23, 2022Failed 2nd reading of Bill C-249, An Act respecting the encouragement of the growth of the cryptoasset sector
This is a computer-generated summary of the speeches below.
Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.
Bill C-249 aims to create a national framework for the cryptoasset sector in Canada. It requires the Minister of Finance to consult with experts and provincial representatives to develop policies that encourage growth, lower barriers to entry, and minimize administrative burdens in the sector while protecting those working in it. The bill also includes reporting and tracking requirements for the framework's development.
Conservative
Support for framework: The Conservative party supports the creation of a national framework for cryptoassets to protect investors and encourage growth in blockchain technology, but stressed the importance of adapting regulations to the evolving tech, and avoiding knee-jerk over-regulation.
Harmonization and clarity: Speakers highlighted the need for policy clarity and harmonization across provinces to encourage investment and innovation in the cryptoasset sector, with the federal government playing a convening role while respecting provincial jurisdiction. They propose an opt-in system to harmonize policies.
Canadian leadership: The Conservative party emphasized the potential for Canada to be a world leader in the crypto space, attracting investment and talent, cautioning against over-regulation and recognizing the need for a balanced approach that supports innovation while protecting consumers. The Conservatives want Canada to foster innovation rather than have the talent leave for other countries.
Consultation with experts: The Conservative party wants the federal government to consult with industry experts and stakeholders in the development of a national framework to ensure that policy decisions are informed and effective, with a formal process for input from cryptoasset professionals and innovators. They suggest this could depoliticize the topic.
NDP
Support for further discussion: Despite reservations about the bill's language, the NDP supports its progression to committee to thoroughly examine cryptocurrency regulation in the public interest. They aim to distinguish real benefits from speculative aspects and explore concerns such as consumer protection, addiction, and environmental impacts.
Regulation is needed: The NDP emphasizes the necessity of financial regulations for cryptocurrencies to prevent money laundering, terrorist financing, and the exploitation of vulnerable individuals. They criticize the Conservative leader's opposition to such regulations and promotion of cryptocurrency investments without proper oversight.
Skepticism about potential: While acknowledging the potential positive aspects of cryptocurrency, the NDP remains skeptical and wants to determine if it adds any real value beyond speculation. They advocate for a thorough examination of the industry's implications, including its potential for harm.
Leaders have a responsibility: The NDP criticizes political leaders who promote cryptocurrency investments without acknowledging the risks and without ensuring proper regulatory oversight, especially given recent financial collapses and the potential for exploitation.
Bloc
Opposed to cryptocurrency growth: The Bloc Québécois is opposed to Bill C-249. They believe it would be a waste of time to amend the bill because it would require a complete rewrite. It is imprudent to focus on the growth of cryptocurrencies instead of regulating them.
Cryptocurrencies facilitate crime: Cryptocurrency ATMs are being used to move the proceeds of crime. Money laundering can be facilitated by cryptocurrencies due to the absence of regulation and intermediaries, and the anonymity afforded to users.
Energy consumption concerns: Cryptocurrency mining consumes a significant amount of energy. The Bloc questions if priority should be given to these activities given the current energy crisis in Europe and environmental concerns.
Weakens central bank: The introduction of cryptocurrency weakens the central bank's control over interest rates and inflation. The Bloc believe that cryptocurrency would disrupt the relationship between the Bank of Canada and inflation, and that increasing the money supply increases inflation.
Liberal
Acknowledges benefits, highlights risks: While acknowledging the potential benefits of cryptocurrency, the party expresses concerns that the bill is too narrow, failing to adequately address the inherent risks, vulnerabilities, and potential financial instability within the cryptoasset sector.
Need for regulation: The party emphasizes the need for proper regulatory infrastructure, including cybersecurity provisions, to guide and regulate the growth of cryptoassets, highlighting the potential dangers to the safety and security of Canadians without such safeguards.
Illicit activity concerns: The party raises concerns about the use of cryptoassets in illegal activities, such as circumventing sanctions by Russian oligarchs and enabling illegal occupations and blockades, emphasizing the need to address these dark elements associated with the unregulated growth of cryptoassets.
Comprehensive approach needed: The party advocates for a comprehensive approach to cryptocurrency legislation that not only promotes growth but also ensures the safety and security of Canadians' financial activities, consults with provinces, and aligns with international standards to limit risks to the financial system and protect consumers.
That is debate. We are going to drop that one right away.
Order. I just want to remind the hon. members before proceeding that unless it is a technical issue, like the translation is not working or something that prevents members from voting, there are no points of order during the voting session.
