As Canada’s political landscape resets following a closely watched federal election, the country’s approach to cryptocurrency policy is at a critical juncture.
As a Canadian, I’ve been closely following how the outcome of the 2025 election would dictate the country’s approach to crypto. With Pierre Poilievre’s defeat and Mark Carney retaining the title of Prime Minister, Canada now faces a pivotal moment in its digital asset policy.
Poilievre had positioned himself as a defender of the crypto space, backing pro-crypto legislation and calling for the country to become a blockchain global hub. Carney, on the other hand, is the former head of both the Bank of Canada and the Bank of England so he is known for taking a more cautious outlook (perhaps even negative view) on crypto’s place in the economy.
It’s clear that crypto took a backseat during this campaign. Poilievre, who once made a video with a restaurant owner while smoking shisha and discussing Bitcoin (BTC), barely mentioned the crypto industry during the campaign. Still, with the Conservatives winning their best result in over a decade implies crypto is not facing an imminent death in Canada.
From what I’ve seen and read, the Carney administration is unlikely to introduce sweeping new crypto legislation but will instead double down on regulation through existing channels. When I spoke with regulatory lawyer and crypto expert Oliver Linch, he echoed that view.
“We can anticipate a shift towards integrating crypto within existing financial regulatory frameworks, emphasising compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations,” he told me.
In the full Q&A below, Linch offers a clear-eyed breakdown of what retail investors like me can expect under this new regime, everything from potential restrictions on altcoins and stablecoins to the broader implications for crypto exchanges operating in Canada. We also touch on the future of central bank digital currencies, crypto’s legal classification, and whether the industry is becoming a partisan dividing line.
Read more: What does the new prime minister-designate of Canada, Mark Carney, think about crypto?
crypto.news: Pierre Poilievre vowed to make Canada the “blockchain capital of the world” and even backed a pro-crypto law (Bill C-249) to encourage the sector. Now he’s been defeated, while Mark Carney, a former central banker at both Canada and England and noted crypto skeptic, retained the Prime Minister position although the Conservative party recorded its best performance in 14 years despite the election loss. Since the Liberals fell short of a majority, how will Carney balance Canada’s crypto policy? How might the regulatory stance change compared to the previous pro-crypto signals we saw under the Conservatives?
Oliver Linch: Mark Carney’s return to Canadian leadership heralds a recalibration of the nation’s approach to digital assets. While his opponents at the recent elections, Pierre Poilievre, championed a laissez-faire ethos, Carney brings a central banker’s prudence, favouring systemic stability over unbridled innovation. He has acknowledged the promise of blockchain technology but remains wary of the speculative fervour surrounding cryptocurrencies like Bitcoin.
Under his stewardship, we can anticipate a shift towards integrating crypto within existing financial regulatory frameworks, emphasising compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. This approach aims to mitigate risks associated with market manipulation and fraud. Moreover, Carney’s international experience suggests a propensity for collaboration with global regulators to establish harmonised standards, potentially imposing stricter regulations on private cryptocurrencies. The balance will likely involve supporting innovation while ensuring consumer protection and financial system integrity.
CN: President Donald Trump openly courted crypto enthusiasts which proved to be a large enough voting block to have a notable impact on the election. Pierre Poilievre similarly tried to rally the crypto community in Canada, famously smoking shisha with a restaurant owner and talking about their use of Bitcoin on the campaign trail although this was three years ago. Yet his crypto-forward approach seemed to have lost momentum and crypto was nearly completely absent from the campaign. Why do you think that is? Did Poilievre fail to energize the base, or is the Canadian crypto voter pool simply too small to sway an election (given only about 10% of Canadians own crypto? Assuming he retains his status as Conservative leader, could he do more next election to harness crypto enthusiasm, akin to how Trump energized parts of his base in the U.S.?
OL: Poilievre’s initial embrace of cryptocurrency resonated with a niche segment of the electorate, but as broader economic concerns took precedence, the crypto narrative lost its electoral potency. The volatility in crypto markets may have further eroded public confidence, rendering it a less viable campaign focal point.
Moreover, Poilievre’s messaging may not have effectively connected crypto policy to everyday economic issues, failing to demonstrate tangible benefits for the average Canadian. In future campaigns, a more nuanced approach that articulates how crypto initiatives can enhance financial inclusion and economic resilience may better resonate with voters.
CN: Do you foresee the Carney government introducing new crypto-specific legislation, or will they rely on regulators and existing laws to manage the sector?
OL: Rather than introducing new legislation, the Carney government is likely to strengthen existing regulatory frameworks to encompass crypto activities. Emphasis will be placed on ensuring compliance with AML and KYC regulations to prevent market manipulation. Regulatory bodies may issue updated guidance to clarify expectations for crypto market participants. Any legislative changes would probably aim to align with international standards and best practices.
CN: For everyday Canadian crypto holders, what changes might they see under the new regime? Should retail traders expect stricter rules on Canadian exchanges (for example, limits on accessing certain altcoins or stablecoins), more compliance hurdles when buying and selling crypto, or even new taxes and reporting requirements? In short, how might the experience of a small retail crypto investor in Canada change now that the government’s attitude has shifted?
OL: Retail crypto investors in Canada may encounter increased scrutiny of their transactions, leading to more rigorous reporting requirements. Access to certain crypto assets and products may be restricted, especially those deemed high-risk or lacking transparency. Exchanges operating in Canada might face stricter operational standards, impacting user experience. Additionally, tax authorities may enhance efforts to ensure proper reporting and taxation of crypto-related income.
CN: Liberals, and Mark Carney in particular, seem more interested in central bank digital currencies and have been skeptical of private stablecoins. What do you expect in terms of policy for stablecoins now? Does the Carney government seem likely to accelerate work on a digital Canadian dollar as an alternative?
OL: The Carney government is expected to prioritise the development of a central bank digital currency (CBDC) to offer a secure digital payment option. This is disappointing. When I first described CBDC as ‘at best pointless and at worst nefarious’ this was a fringe view, much maligned by traditional and central bankers seeking to get in on the digital assets game. That view has, pleasingly, become increasingly mainstream, but it seems that still not everyone is convinced. Private stablecoins could face heightened regulatory requirements to ensure they meet standards for stability and transparency. Public consultations will likely follow, and these are the best opportunity to explain why pursuing a digital Canadian dollar ought not to be a priority of the new government.
CN: Poilievre had floated the idea of reclassifying crypto assets from securities to commodities so that crypto use and development would face fewer hurdles. Now that the Liberals are in charge, is that reform completely off the table? How significant is it for the industry if crypto in Canada continues to be treated as securities by default – does it make launching new tokens or DeFi projects prohibitively difficult under existing law? And do you see any scenario where this classification issue gets revisited despite Poilievre’s defeat?
OL: While not entirely off the table, reclassification efforts may face significant hurdles under the current administration. In reality, classification issues are unlikely to produce long-term stable results for the regulation of these assets. The unsatisfying debate, for example in the US, demonstrates that trying to view assets through the lens of traditional financial products is unlikely to be successful. The reality is that many digital assets have features that resemble both securities and commodities, but the better analysis is that they are their own product, and ought to be regulated as such. Maintaining the classification of certain crypto assets as securities ensures they are subject to established investor protection laws, which is understandably attractive to someone with Carney’s professional background. In any event, any reconsideration of classifications would likely involve extensive analysis and stakeholder consultation, and is unlikely to be a priority of the new government.
CN: Simple question to wrap this interview up: Has cryptocurrency become a partisan issue in Canada?
OL: Simple answer: no. Obviously, in an election cycle, everything becomes as politicised. We certainly saw that in the US election, and the reality is that it was only really a talking point for the Conservatives in the Canadian election. But to
view digital assets as a party political issue going forward is naive. Across the world we are seeing politicians from all geological backgrounds embracing digital assets as a way to modernise economies, expand opportunities, and democratise the financial sector more broadly. It may not win elections, but the new government will likely be interested in the opportunities crypto can bring for financial inclusion. Crypto has increasingly become a topic of political debate in Canada, with differing views on its role in the economy. Despite political differences, there is a shared interest in ensuring financial system integrity and consumer protection. The challenge lies in balancing innovation with responsible oversight, transcending partisan lines.
