Canada’s enthusiasm for cryptocurrency has surged significantly in recent years. A blog post from Coinbase in partnership with Angus Reid, dated March 26, 2025, reveals that nearly five million Canadians possess various digital assets, signifying a substantial shift in the financial landscape.

However, a stark disconnect remains between the current financial system and the needs of the populace. The blog highlights warnings from Coinbase that Canada risks lagging behind as global adoption of digital assets accelerates, especially with upcoming elections providing a pivotal chance to revise digital asset policies.

“coinbase warning canada not to fumble its leadership position in crypto as election approaches. 5 million canadians already in the space, but exchanges leaving due to messy regulations. they're pushing for clear rules, bitcoin reserves, and better mining conditions. smart move.”
— GabachoBTC (@BtcGabacho) March 27, 2025

According to the survey by Coinbase, a significant 86% of Canadians believe that an update is necessary for the financial system. The findings also indicate 80% perceive the system as unfair, with 76% expressing that it does not resonate with their needs. Alarmingly, 83% feel that the financial system prioritizes corporations over individuals.

Current Status and Regulatory Implications
As it stands, Canada does not classify crypto assets as legal tender and regulatory oversight remains fragmented across various authorities. The Canadian Securities Administration (CSA) is in the process of developing a unified regulatory framework, yet the progress is perceived as slow.

Urgent Regulatory Reforms Needed
Coinbase’s Country Director, Lucas Matherson, underscores the urgency for clear regulations to maintain Canada’s competitive edge in the crypto arena. Numerous US-based crypto exchanges have been forced to withdraw from Canada due to stringent regulations imposed by the CSA, particularly concerning stablecoins.

A considerable 72% of Canadians affirm the necessity of regulations on crypto exchanges, with a third indicating willingness to invest in crypto under better regulatory conditions.

In its report, Coinbase suggests Canada pursue several initiatives to position itself as a leader in the global crypto economy. Recommendations include developing thorough regulations, promoting public-private partnerships, investing in crypto education, enhancing research and development, and ensuring tax transparency.

Coinbase’s Expansion in Canada
Despite existing challenges, Coinbase remains optimistic about the Canadian market, having launched operations in 2023 and scaled its workforce to over 200 full-time employees. Currently, Canada is Coinbase’s largest market beyond the U.S., with the firm investing significantly in various Canadian blockchain ventures, including Dapper Labs.

Through its Stand With Crypto campaign, Coinbase is actively advocating for necessary reforms to stimulate collaboration between Web3 developers, blockchain advocates, and crypto business owners.

Key Takeaways

• 72% of Canadians support regulations for crypto exchanges; 1 in 3 would invest if regulations improved.
• Public-private collaboration is vital for crypto innovation.
• 86% of Canadians feel the financial system requires an overhaul.