Canada’s New Cybersecurity Legislation (Bill C‑8): Why It Matters Now – And How To Protect Your Business

In May 2025, the Canadian government reintroduced a sweeping cybersecurity bill that could reshape how businesses - especially those connected to critical infrastructure - manage, report, and defend against cyber threats.

Previously known as Bill C‑26, this updated legislation is now Bill C‑8, and it represents a major step forward in Canada's regulatory framework for cybersecurity. But with new enforcement powers, mandatory incident reporting, and the threat of major penalties, it’s more than just a policy update - it’s a wake-up call for every Canadian business.

Whether you’re a direct infrastructure provider or a small business serving regulated clients, the implications of C‑8 are real and preparing now is key.

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What Is Bill C-8 - and What Changed from C-26?

The original Bill C‑26, introduced by the previous government, aimed to modernize Canada’s approach to cybersecurity by:

Requiring designated organizations to report cyber incidents

Granting government authorities more oversight over security standards

Empowering regulators to issue significant penalties for non-compliance

Although C‑26 stalled before becoming law, the new C‑8 picks up where it left off - with a refreshed mandate and a more urgent tone.

Bill C 8 empowers the federal government to:

Mandate cybersecurity reporting obligations for businesses tied to “vital systems”

Require compliance with specific cybersecurity standards for those organizations

Conduct inspections and enforce changes deemed necessary for national safety

Impose steep fines on companies that fail to report incidents or follow directives

This isn't just for large public utilities or telecoms. The law includes any organization designated as contributing to Canada's critical infrastructure, which includes financial systems, energy grids, transportation networks, and even digital service providers.

Why Small and Medium Businesses Shouldn’t Ignore Bill C-8

You might assume that C‑8 only affects telecom giants or power companies. But in today’s interconnected supply chain, even small firms are part of the critical infrastructure ecosystem.

Consider the following:

If you host software used by a logistics company, you're in the infrastructure chain.

If you manage cloud data for a public healthcare provider, you’re part of a regulated data network.

If you provide cybersecurity tools, IT support, or communications systems to a regulated industry, your exposure is real.

Even if you’re not directly required to comply with Bill C‑8, your clients may soon require it of you.

That means

Contractual obligations to meet cybersecurity standards

Pressure to show due diligence and proof of protection

Risk of supply chain audits and vendor disqualification

Loss of business opportunities due to lack of coverage or compliance

The Threat Landscape Is Escalating

This legislation didn’t emerge in a vacuum. Canada - like the rest of the world - is facing a significant surge in cyberattacks, particularly those targeting operational infrastructure and SMEs.

Here’s what the data tells us:

58% of all cyberattacks in Canada now target small and medium-sized businesses. (F12)

The average cost of a cyber breach for a Canadian SMB is estimated at $270,000. (Finance Yahoo)

Only 29% of SMEs in Canada have a formal incident response plan or dedicated IT security function. (BDC)

According to the Canadian Centre for Cyber Security, ransomware attacks increased by 86% from 2023 to 2024 alone.

And now, under Bill C-8, failure to report or respond appropriately could carry fines in the millions.

What Will Compliance Look Like Under Bill C-8?

While the final version of the legislation is still under review, early government guidance suggests businesses will need to implement the following pillars of readiness:

  • Proactive Risk Management

    Organizations must actively assess their digital environment - identifying vulnerabilities, risks, and dependencies that may compromise operational continuity.

  • Mandatory Cyber Incident Reporting

    Covered entities will need to notify regulators of cybersecurity incidents within a specified time window. Failure to do so could result in penalties or enforcement action.

  • Baseline Cybersecurity Controls

    Businesses will be expected to maintain up-to-date systems, enforce access control, encrypt sensitive data, and regularly patch software.

  • Auditable Documentation

    Security policies, employee training, risk assessments, and incident response plans must be documented and ready for government inspection if requested.

  • Business Continuity and Recovery Planning

    Organizations must demonstrate they can continue operating during a cyber crisis - and recover quickly after one.

ThinkSwift’s Cyber360: Built for Compliance and Protection

At ThinkSwift, we understand the pressure Canadian businesses face: rising cyber threats, evolving compliance demands, and the need to stretch resources without compromising protection.

That’s why we created Cyber360 - a bundled cybersecurity and cyber insurance solution tailored for Canadian SMEs and mid-sized businesses.

Cyber360 Includes:

24/7 threat detection and response with active network and endpoint monitoring

Quarterly vulnerability assessments and patching strategy

Customized incident response plans aligned with compliance mandates

Staff cybersecurity awareness training, including phishing simulations

Governance and policy templates for access control, acceptable use, and vendor management

Up to $500,000 in cyber liability insurance, covering breach recovery, legal fees, and business interruption

Unlike most piecemeal solutions, Cyber360 offers end-to-end protection, compliance readiness, and insurance-backed risk transfer - all in one package.

Whether you’re directly regulated under Bill C‑8 or preparing to meet client or vendor demands, ThinkSwift gives you the tools, structure, and confidence to operate safely and responsibly.

What Canadian Business Leaders Should Do Next

Cybersecurity isn’t just an IT concern anymore - it’s a legal, financial, and reputational priority. As legislation like Bill C‑8 takes effect, companies of all sizes will be held to higher standards.

Here’s what you can do today:

Review your exposure: Are you working with regulated clients? Are you in the infrastructure supply chain?

Conduct a risk assessment: Where are your security gaps? What’s your current response plan?

Engage with partners who specialize in compliance-readiness and protection.

Invest in both prevention and recovery - cyber insurance is no longer a nice-to-have.

Prepare for Regulation. Protect Your Business

With Bill C‑8, the federal government is sending a clear message: cybersecurity enforcement is coming, and businesses must be ready to defend their digital front lines.

At ThinkSwift, we help Canadian companies get ahead of the curve-with proactive protection, compliance support, and financial safeguards built into one trusted solution.

Let’s talk about how to future-proof your business today.

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