Alberta wants to become the North American hub for the maverick industry.
Cryptocurrency has been described by some observers as a “Wild West,” so it’s no surprise that of all Canadian provinces, Alberta is the one that has set its sights on becoming a North American hub for the maverick industry.
The oil-and-gas producing province that prides itself on its entrepreneurial history is now touting its ambition to become a North American hub for companies trading in and offering services related to Bitcoin, Ethereum, Dogecoin and other digital assets.
In the province’s throne speech last month, Alberta’s UCP government declared its intention to table legislation aimed at “promoting innovation” in the financial services sector by allowing companies to test new products and services.
The throne speech also mentioned future legislation that will solidify Alberta’s reputation as a “modern electricity powerhouse and a magnet for investment in emerging technology like data storage and cryptocurrency.”
While the details of any forthcoming legislation have yet to be revealed, Jobs Minister Doug Schweitzer said in a recent interview that companies operating in the crypto space have demonstrated “immense interest” in the province in recent months.
“It’s still very much in its infancy in Alberta,” Schweitzer said. “But I think there’s an opportunity for Alberta to play a leadership role in Canada by creating a home for these venture companies.”
Alberta has already established itself as an attractive destination for cryptocurrency miners, who have set up a number of operations at various locations throughout the province. (The supercomputers used to mine for Bitcoin and other crypto tokens require vast amounts of low-priced power to be economical, so miners are often attracted to Alberta’s deregulated electricity system and abundant supply of natural gas).
Beyond mining, the province is also increasingly home to a wide range of other cryptocurrency-related firms, from those that specialize in the custody and storage of digital assets to manufacturers of crypto mining equipment like immersion cooler containers.
“I would say Alberta is close to unique, from what we’ve seen, in terms of how focused they are on attracting innovative financial technology companies,” said Emile Scheffel, vice-president of Brane Inc., which recently chose Calgary as the headquarters for its new subsidiary, Brane Trust.
Brane Trust will provide secure custody of digital assets such as Bitcoin and Ethereum for institutional clients like banks and asset managers that either manage cryptocurrencies, or are seeking to expand their services to cryptocurrency services.
But setting up the business in Brane’s home base of Ontario proved difficult from a regulatory perspective. Getting the necessary regulatory approvals would have taken up to two years, whereas Alberta rolled out the welcome mat, Scheffel said.
“When we first reached out to regulators in Alberta about our ambitions, they were knowledgeable about cryptocurrency already they had the necessary expertise to be able to do this,” he said.