"Regardless, it appears as though the Canada’s federal government is ramping up to take a global lead with Bitcoin by letting it flourish before trying to control it."
so this is their plan in their end, this is why many Gov are not hindering bitcoin, they want it to become big first, before trying to get their hands on it
Well, there is no point on wasting time and money trying to regulate something that is currently only used by a few.
Let it get bigger and therefor worth your while, and then regulate it.
By then, you will have more chances of success because there is a large portion already using it and work with/for it.
Sure, some companies (like Xapo for example) might choose to relocate if they don't like the regulation,
but we should not forget that they will still have the normal Buitcoin user which will not relocate and will continue to use and get taxed on Bitcoin.