Lucas Matheson, Coinbase's country director for Canada, has highlighted a significant shortfall in political engagement from Canadian lawmakers regarding the cryptocurrency industry. Despite a collaborative regulatory environment, he believes more strategic involvement from politicians is crucial.

Speaking to Cointelegraph at the Collision conference in Toronto on June 18, Matheson praised Canadian regulators for their cooperative approach compared to their U.S. counterparts. However, he pointed out that lawmakers have not shown the same level of engagement. "There are other geographies where political leaders establish long-term strategic plans to incorporate digital assets and technology into their economies," Matheson said. He stressed the importance of working closely with federal politicians and members of parliament to ensure a robust regulatory framework for digital assets in Canada.

Matheson noted that an exception to this trend has been the regulation of stablecoins, where the crypto industry has successfully collaborated with the federal government and regulators. Despite this progress, some major exchanges like Binance and Bybit have exited the Canadian market, citing the regulatory environment as a significant factor in their decision.

Despite these challenges, Matheson sees the stringent regulatory framework in Canada as an opportunity. "It’s a really great spot for us to build trust with regulators, build trust with the public, and build trust with the government," he said. Coinbase, which launched in Canada in August 2023, has been making steady progress in navigating the country’s regulatory landscape. In April, the exchange secured a restricted dealer license and later an international dealer license for its Canadian arm.

Looking ahead, Canada plans to implement the international Crypto-Asset Reporting Framework (CARF) for taxation by 2026. This regulation will introduce new tax reporting requirements for crypto exchanges and other entities dealing with digital assets, aligning Canadian standards with international norms.

Matheson’s comments underscore the need for a more engaged political approach to cryptocurrency in Canada, suggesting that while the regulatory framework is strong, greater political involvement could further bolster the industry’s development and integration into the Canadian economy.