The country’s approach to cryptocurrency policy is at a critical time as Canada’s political landscape is reset following closely monitored federal elections.
As a Canadian, I have closely tracked how the results of the 2025 election dictate the national approach to crypto. With Pierre Poilievre’s defeat and Mark Carney retaining the title of Prime Minister, Canada is currently facing a pivotal moment in its digital asset policy.
Poilievre positioned himself as a crypto space advocate, endorsing custody laws and sought the country to become a global hub for blockchain. Meanwhile, Kearney is known for taking a more cautious (and perhaps a negative) perspective on the status of crypto in the economy, as he is both the Bank of Canada and the Bank of England.
It is clear that Crypto took the back seat during this campaign. Poiriebre, who once made a video with the restaurant owner while smoking shisha and discussing Bitcoin (BTC), made little mention of the crypto industry during the campaign. Still, with conservatives winning the best results for over a decade, this means that the code is not facing imminent death in Canada.
From what I’ve seen and read, the Carney administration is unlikely to introduce a drastic new cryptographic method, but instead doubles its regulations through existing channels. When I spoke to Oliver Lynch, a regulatory lawyer and cryptography expert, he reflected that view.
“We were able to predict the transition to integrating encryption into existing financial regulatory frameworks, highlighting the regulatory compliance of Money Laundering Anti-Money Laundering (AML) and Knowledge Customers (KYCs),” he said.
In the full Q&A below, Lynch provides a clear breakdown of what retail investors like me can expect under this new regime. This ranges from the potential restrictions on altcoins and stubcoins to the broader implications for crypto exchanges operating in Canada. It also touches on the future of central bank digital currencies, Crypto’s legal classification, and whether the industry is a partisan line of division.
read more: What does Mark Kearney think about the code, designated by the new Canadian Prime Minister?
Crypto.News: Pierre Poilievre vowed to make Canada “world blockchain capital” and supported the Pro-Crypto Act (Bill C-249) to encourage the sector. Now, he is defeated, but Mark Carney, a former central banker and cryptography skeptic in both Canada and England, held the position of prime minister, while the Conservatives recorded their best performance in 14 years despite election losses. Since the Liberal Party has not reached a majority, how does Carney balance the balance of Canadian crypto policy? How will the regulatory stance change compared to previous pro-cryptography signals seen under conservatives?
Oliver Linch: Mark Carney’s return to Canadian leadership announces a realignment of the country’s approach to digital assets. His opponent in the recent election, Pierre Poiliervre has defended the free asezian celebration, but Carney brings the prudence of central bankers, supporting systemic stability over unlimited innovation. He acknowledges the promises of blockchain technology, but remains wary of the speculative enthusiasm surrounding cryptocurrencies like Bitcoin.
Under his stewardship, we can predict a shift towards integrating encryption into existing financial regulatory frameworks, highlighting anti-money laundering (AML) and knowledge customer (KYC) regulations compliance. This approach aims to mitigate risks associated with market manipulation and fraud. Furthermore, Kearney’s international experience suggests a trend in cooperation with global regulators, establishing harmonious standards and potentially imposes stricter regulations on private cryptocurrencies. Balance involves supporting innovation while ensuring consumer protection and integrity in the financial system.
CN: President Donald Trump openly courted a crypto enthusiast who proved to be a voting block big enough to have a prominent influence on the election. Pierre Poilievre similarly attempted to bring together the Canadian Crypto Community. Smoking the famous shisha with the restaurant owner, it was three years ago, and we talked about using Bitcoin on the campaign trail. However, his approach to encryption seemed to have lost momentum, and cryptography was almost completely lacking in the campaign. Why do you think so? Has Poilierble failed to activate the base, or Canada’s crypto voter pool is too small to shake up the election (is it only about 10% of Canadians also crypto?
OL: Poilierbre’s first embrace of cryptocurrency resonated with voter niche segments, but the crypto narrative lost its election power as broader economic concerns came to priority. The volatility in the crypto market may have further eroded public trust and became the focus of a viable campaign.
Furthermore, Poilievre’s message may not effectively connect crypto policy to everyday economic issues and fails to show the concrete benefits of the average Canadian. Future campaigns have a more nuanced approach that clarifies how crypto initiatives can strengthen financial inclusion and economic resilience improves empathy with voters.
CN: Do you expect the Kearney government to introduce new crypto-specific laws, or do they rely on regulators and existing laws to manage the sector?
OL: Rather than introducing new laws, the Kearney government may strengthen existing regulatory frameworks to encompass crypto activity. The focus will be on complying with AML and KYC regulations to prevent market manipulation. Regulators may issue updated guidance to clarify expectations for participants in the crypto market. Legislative changes are likely to align with international standards and best practices.
CN: For the daily Canadian crypto owners, what changes will they see under the new administration? Should retailers expect stricter rules on Canadian exchanges (e.g., restrictions on access to certain altcoins and stubcoins), compliance hurdles when buying and selling cryptos, or even new taxes and reporting requirements? In short, how will the experience of small crypto investors in Canada change now that government attitudes have changed?
OL: Canadian retail crypto investors may encounter an increased scrutiny of transactions, leading to stricter reporting requirements. Access to certain crypto assets and products is particularly deemed high risk or lack of transparency. Exchanges operating in Canada face stricter operating standards and can affect the user experience. Additionally, tax authorities may strengthen their efforts to ensure proper reporting and taxation of crypto-related revenues.
CN: Liberals, Mark Kearney in particular, were more interested in central bank digital currencies and were skeptical of private stubcoins. What are you expecting now regarding Stablecoins policy? Do you think the Kearney government is likely to accelerate its digital Canadian dollar work as an alternative?
OL: The Kearney government is expected to prioritize the development of central bank digital currency (CBDC) to provide secure digital payment options. This is a shame. When I first described CBDC as “meaningless at best and evil at worst,” this was Fringe’s view, and was extremely malicious by traditional and central bankers trying to get involved in digital asset games. That view has become more and more comfortable, but it seems that not everyone is sure of it yet. Private stubcoins may face strengthening regulatory requirements to ensure they meet stability and transparency standards. Public consultations are likely to continue, and these are the best opportunities to explain why pursuing the digital Canadian dollar is not a priority for the new government.
CN: Poilievre came to the idea of reclassifying crypto assets from securities to commodity so that crypto uses and development face less hurdles. Is that reform completely off the table as it is being handled by liberals? How important is it to the industry if Canadian crypto continues to be treated as a securities by default? Does it make it difficult to make new tokens or Defi projects prohibitively difficult under existing laws? And despite Poilievre’s defeat, is there a scenario in which this classification problem is revisited?
OL: While not entirely off the table, reclassification efforts could face serious hurdles under the current administration. In practice, classification issues are unlikely to produce long-term stable outcomes due to the regulation of these assets. For example, satisfactory discussions in the US indicate that attempting to see assets through the lens of traditional financial instruments is unlikely to succeed. The reality is that many digital assets have similar features to both securities and goods, but a better analysis is that they are unique products and should be regulated in that way. By maintaining a particular cryptocurrency classification as a securities, we ensure that they are subject to established investor protection laws. In any case, rethinking the classification is likely to involve extensive analysis and stakeholder consultation, and is unlikely to be a new government’s priority.
CN: A simple question enveloping this interview: Has cryptocurrency become a partisan issue in Canada?
OL: Simple answer: No. Clearly, in the election cycle, everything seems politicized. We certainly saw it in the US elections, and the reality is that it was really just a hot topic for the Conservatives in the Canadian elections. but,
It is naive to see digital assets as a political issue for political parties in the future. Around the world, we see politicians from all geological backgrounds adopting digital assets as a way to modernize the economy, expand opportunities, and democratize the financial sector more widely. While they may not win elections, the new government will be interested in the opportunities that crypto offers for financial inclusion. Crypto is becoming a topic of political debate in Canada, with different views on its role in the economy. Despite political differences, there is a common interest in ensuring the integrity of the financial system and consumer protection. The challenge lies in balancing innovation, transcending responsible surveillance and partisan lines.
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