In 2023, Canada introduced several new measures to enhance the oversight and protection of crypto activities in the country. Some of these measures include:

• The Canadian Securities Administrators published new guidance for the local crypto industry, warning exchanges and other platforms they would have to abide by "enhanced investor protection commitments" through a pre-registration process while working on their actual registrations. They have 30 days to comply. The guidance also imposes restrictions on margin trading, stablecoins, custody arrangements, disclosure requirements, and market integrity rules.

• The federal government announced in Canada's 2023 budget plans that it would develop a comprehensive framework to "protect" Canadians from the risks associated with crypto assets. The framework would include new powers for law enforcement to freeze or seize crypto assets suspected to be linked to criminal activity, as well as enhanced reporting requirements for financial institutions dealing with crypto transactions.

• The Canadian Revenue Agency (CRA) issued new guidance on the tax treatment of crypto transactions, clarifying how different types of income or gains from crypto activities should be reported and taxed. The guidance also provides examples of common scenarios involving crypto trading, mining, staking, lending, borrowing, donating, gifting, swapping, air dropping, hard forking, or using crypto as payment.

These developments reflect Canada's proactive approach to regulating crypto assets in a way that balances innovation with investor protection. However, they also pose new challenges and complexities for crypto businesses and users who need to comply with multiple rules and obligations across different regulators.