Why Canada has Emerged as a Leading Blockchain and Crypto Nation: Expert Take

Expert Takes cover everything from Blockchain technology and ICO funding to taxation, regulation, and cryptocurrency adoption by different sectors of the economy.

While it ranks third in the world behind the U.S. and the UK when it comes to embracing Blockchain technology, Ethereum Blockchain technology adoption around the world with a wide variety of applications in finance, government, legal, health, education, space, national and multinational cryptocurrencies, energy, initial coin offerings and others is unparalleled.

Center for Blockchain innovationCanada's dominance in Blockchain innovation stems in part from Toronto being home to Vitalik Buterin who is the inventor of the Ethereum Blockchain, a second-generation open source software platform, with a general scripting language, which created a protocol for building reliable decentralized trusted networks.

BRI has partnered with the Information and Communications Technology Council of Canada to build a nationwide Blockchain ecosystem; alongside the Bank of Canada which has explored and experimented with a National cryptocurrency.

Cryptocurrency miningBut it's not only Blockchain innovation where Canada excels in.

China's Bitmain Technologies began mining in Canada in 2016, when ETH traded at $1. When ETH's price rose 63,600% to $636 with no implemented hard cap on the total ETH supply, Bitmain first announced a new specialized mining system for ETH; then set its eyes on cryptocurrency mining sites in Quebec, as it takes on average 29.05 TWh annually to operate a cryptocurrency mining operation.

Light cryptocurrency regulationExcessive regulation could stifle innovation; accordingly, Canada lightly regulates cryptocurrency/ICO/tokens.

Last year, with the boom in Ethereum Blockchain based ICOs that raised $4 Billion worldwide, the Canadian Securities Administrators suggested that Canadian Securities Law may be potentially applicable to cryptocurrencies.

Cryptocurrency taxation with incentivesThe Canada Revenue Agency began taxing cryptocurrencies in 2013, but to bolster technological and scientific innovation the -Federal and provincial-governments provide various Research and Development tax incentives.

If the cryptocurrency is situated, deposited or held outside of Canada directly or through funds, taxpayer must adhere to foreign reporting rules.