If this happens it seems decentralized E2EE messaging would be the only option for Canadians who value privacy. And that stuff tends to be more awkward to use, and much harder to get people to use, than something as slick as Signal.
And it's not just Signal. Major VPN providers are also threatening to quit Canada over this bill. Which will go perfectly with demands for online age verification (that is, ID tracking) and a crackdown on "piracy" sites. Many of the best things on the internet, amd what little online privacy we still have, could be taken away from Canadians in coming months or years.
And that's before even considering what it means for low-budget operators of websites and services like the Fediverse, who may not be able to afford to comply. These laws always seem to squeeze the small players and favour the mega corporations. Not to mention that despite all Carney's big talk and the clear threat the USA poses to Canada, the Canadian government's actions seem determined to hand ever more Canadians' data over to the USA.