Market Factors and Regulation Propel Canada’s Retail Crypto Growth

The outlook for retail cryptocurrency trading in Canada appears promising. A blend of factors, including the favorable local regulatory climate, is poised to foster ongoing market expansion. Dean Skurka, CEO of the Canadian crypto asset platform WonderFi, expressed confidence in this trend during a conversation with ’s Sam Bourgi at the Collision event held in Toronto. According to Skurka, retail interest is indeed resurging in the market.

Skurka highlighted a fortunate combination of elements contributing to this positive outlook for crypto in Canada. He specifically pointed to the Bank of Canada’s recent interest rate cut, which has boosted discretionary spending among the public. This, coupled with the growing attraction of Bitcoin (BTC) and Ether (ETH) exchange-traded funds, has placed cryptocurrency in a favorable light for a broader audience. The upcoming Bitcoin halving event is expected to further energize the market. While Skurka acknowledged that these changes wouldn’t manifest overnight, he observed signs of increasing public receptivity to crypto, as evidenced by a spike in new signups on WonderFi’s platform during Bitcoin’s all-time high price.

WonderFi has notable support from high-profile backers, including billionaire celebrity Kevin O’Leary. The platform has made significant strides by acquiring several prominent crypto firms, planning to merge these entities following its merger with Coinsquare in July 2023. Coinsquare is regulated by the Canadian Investment Regulatory Organization, underscoring the emphasis on compliance and stability. WonderFi has acquired Bitbuy and Coinberry, culminating in managing $1 billion in assets by the end of 2023.

The regulatory landscape in Canada remains a focal point for WonderFi. The country’s regulators have already taken steps to address staking and the crypto spot market. Skurka anticipates that crypto derivatives, like futures, will be next on the regulatory agenda. As WonderFi embarks on its expansion plans into the Asia-Pacific (APAC) region, it has gained valuable insights from its experience with Canadian regulators, whom Skurka describes as being “further ahead” compared to their counterparts in APAC.

This international expansion offers WonderFi a fresh perspective on the Canadian regulatory environment. The firm’s dealings with regulators in Canada will guide its approach in the APAC markets. According to Skurka, WonderFi’s activities in the APAC region will be publicly unveiled in the coming months, marking a new chapter in its growth trajectory.

Not all industry participants share WonderFi’s positive view on Canadian regulation. In February 2023, new rules introduced by the Canadian Securities Administrators led to the exit of several crypto firms from the country. This regulatory tightening has been a point of contention for some, contrasting with WonderFi’s more optimistic outlook.

Despite these differing opinions, WonderFi remains steadfast in its belief that the regulatory framework in Canada is beneficial for the crypto market’s development. The firm is leveraging its regulatory experience as it ventures into new territories, aiming to carry forward the lessons learned to navigate the complexities of different markets effectively.

While the path to widespread retail crypto adoption in Canada is still unfolding, the current signs are promising. With a combination of favorable regulatory conditions, strategic acquisitions, and a keen eye on international expansion, WonderFi is positioned to play a significant role in shaping the future of cryptocurrency trading in the region.