The Law that is killing Canada's space industry
And there is a simple solution
Canada loves to talk big about space. We claim leadership in Earth Observation and even boast about sending an astronaut to the Moon.
But building a space company here has shown me something uncomfortable: Canada’s space ecosystem is being choked by unnecessary and outdated regulatons.
At the heart of the problem lies a little-known law from 2004 — the Remote Sensing Space Systems Act (RSSSA) — a piece of legislation so outdated that it’s quietly strangling innovation in one of Canada’s most promising industries.
If you operate or process imagery from a satellite that looks at Earth, you need a license from Global Affairs Canada. On paper, that sounds reasonable. In practice, it’s a bureaucratic nightmare.
The Act was written for Cold War–era spy satellites, not for modern commercial Earth observation companies. The result? It’s almost impossible for startups to move fast or even survive here. The problem is that the act itself is so out of step with current operational and technological reality there is no reason for EO startups to start or stay in Canada.
Canada’s own review in 2022 showed that 43% of industry respondents said the RSSSA’s costs are significant or prohibitive. From what I’ve seen, that’s an understatement. The RSSSA has killed startups before they could grow, and pushed founders to the U.S. or U.K. where licensing is clear, fast, and commercially minded.
It’s a doom loop: each generation of Canadian founders tells the next one to leave. Wyvern fought through it, but if we ever fail, this broken regulatory system will be one of the main reasons why.
It’s not just Wyvern who struggles. Foreign companies are deterred from Canadian space investment. How many jobs have been lost because of companies stuck in regulatory limbo? Such as when Planet tried to build ground stations in Canada.
To keep our business thriving despite these challenges, we have had to invest in satellite manufacturing from outside Canada to mitigate the RSSSA’s effects. Regulatory red tape has held back commercial growth. Meanwhile, our competitors abroad operate freely, winning contracts and scaling faster.
But there’s an easy fix. The Minister of Foreign Affairs already has the power to grant exemptions under the current law. That power could be used today to unlock Canada’s potential.
Long term - Canada needs to ensure a level regulatory playing field for its space companies. While the UK, US, and EU approve licenses in months, many Canadian operators are stuck in regulatory limbo years after starting their companies.
Calls to action:
👉 If the new Liberal government truly wants to cut harmful regulations and help Canadian tech compete globally, start with the RSSSA.
👉 If you’re a Canadian space entrepreneur, investor, or ally — write to the Honourable Minister Anita Anand. Talk to your MP. The RSSSA must be reformed or scrapped before Canada’s Earth Observation industry disappears entirely.