2024 Toronto Blockchain Futurist Conference

Regulation Panel
Moderator: Stephen Sargeant, Founder Airdropd
Speakers:

• Perianna Boring, Founder & CEO The Digital Chamber
• Usman Sheikh, Partner (Head of Blockchain & Fintech Practice) Baker Mckenzie LLP
• Aaron Grinhaus, Managing Partner/International Tax Lawyer, Grinhaus Law Firm
• Mo Yang, Founding Partner & CFO, Convoy Finance

Let’s face it, policy discussions are about as thrilling as reading the terms and conditions (which, let’s be honest, no one reads). But, for those daring souls venturing into the wild west of cryptocurrency, understanding the regulatory landscape is as crucial as a spacesuit in the vacuum of space.

So let’s take a quick journey through the cosmos of cryptocurrency regulation, where the only constant is change, and the universe seems to be playing a cosmic game of “regulatory roulette”. Since I am Canadian, let’s start our journey in Canada.

Canada – The Tax Barter Way

When addressing cryptocurrency regulations, Canada stands out among Western nations for its pragmatic approach. Aaron Grinhaus (Tax Lawyer, Grinhaus Law) noted, the government initially applied simple, foundational tax rules similar to those used in historical barter transactions, “such as trading chickens for goats”. This set the stage for the current tax treatment of digital assets. From these beginnings, Canadian policies have evolved to tackle more complex aspects of digital asset management. Despite past challenges where regulatory and tax authorities struggled with coordination during audits, there has been significant improvement. Today, the clarity and effective administration of crypto taxation are much better, providing a stable environment for the technology to flourish.

Side Note: The Canadian Securities Administrators (CSA) plan to delist Stablecoins from Canadian crypto platforms by October 31, 2024. I have mixed feelings about this – details to come in a future post!

The U.S. – A Tale of Regulatory Whiplash

In the land of the free, where the crypto market once danced with the freedom of a wild mustang, the current sentiment is, as Perianna Boring (CEO The Digital Chamber) puts it, “We hate you, we want you to die, and you’re not welcome here.” This, apparently, is the unofficial policy of the Biden/Harris administration, with Senator Elizabeth Warren leading the charge against crypto with the fervor of a knight against a dragon. Currently, there is much resistance complicating the passage of pro-crypto legislation despite numerous proposals.
Yet, amidst this regulatory storm, the U.S. remains a hub for innovation, albeit with a cloud of uncertainty hanging over it and leading some to leave the U.S. altogether. The silver lining? Political winds might shift, and if you are voting solely based on crypto, presidential candidates like Mr. Kennedy and Donald Trump waving the pro-crypto flag, promise a new dawn for digital assets.

The EU – A Regulatory Safe Haven?

Crossing the pond, the EU’s approach is as different as night and day. The European Union is carving out a niche as a crypto-friendly haven. Usman Sheikh (Baker McKenzie) highlighted the EU’s comprehensive regulatory framework for crypto assets known as MiCA (Markets in Crypto-Assets Regulation). With the introduction of MiCA, Europe’s rolling out the red carpet for crypto, offering regulatory clarity which is both welcome and necessary for the industry’s growth. This proactive approach is fostering a secure environment for crypto businesses to thrive.

Global Perspectives – The Race to the Top

The world is watching, and many nations are vying to become the next Silicon Valley or Wall Street for crypto. From Singapore to Dubai, countries are laying out the welcome mat with regulatory frameworks but as the discussions continue to unfold, stakeholders must remain vigilant and proactive ensuring their operations align with current legal frameworks. The question isn’t if digital assets will stay, but where they’ll thrive.

Final Thoughts – More Than Just Money

Perianna reminds us that beyond the financial aspects, crypto represents fundamental human rights – freedom of speech, assembly, and property. The fight for crypto isn’t just about business; it’s about preserving these rights in the digital age.
As the world continues to debate and develop these frameworks, staying informed and adaptive will be key for anyone involved in this space.