A Surge in Crypto Interest by Canadian Financial Institutions – CEO of WonderFi Explains
A recent conversation with Dean Skurka, the CEO of WonderFi, at the Blockchain Futurist conference in Toronto unveiled an unfolding story. He shared insights on the growing interest of Canadian financial institutions in cryptocurrency. According to him, this shift is due to the gradual emergence of regulatory clarity in Canada.
Rising Trends in Institutional Trading
Interestingly, Dean Skurka mentioned that there has been a perceptible change in the trading scene at his exchange. He observed:
- Relative to retail investors, there has been an increase in trading activities by institutions.
- The first half of this year has witnessed growth in the OTC institutional segment.
- These institutional investors, being more sophisticated, are less prone to market sentiment and trends.
- Their investment approaches are more fundamentally grounded.
- Clear regulatory policies have ushered in a noticeable change in client preferences.
Image description: Cointelegraph’s Sam Bourgi and WonderFi CEO Dean Skurka at the Blockchain Futurist conference in Toronto, August 16, 2023.
Regulation vs Canadian Crypto Exchanges
The Canadian government’s embracing of clear regulations is not appreciated by everyone. Here are some developments highlighting discontent among the exchanges:
- The government has received criticism for establishing too stringent regulations for crypto exchanges.
- The rigid rules compelled some major crypto exchanges, including Bybit and Binance, to withdraw from the Canadian market.
In contrast, Dean Skurka sees the regulatory clarity in Canada as a positive development for WonderFi and claims:
“Through the platforms that we own and operate, having the licenses that we do, there are fewer venues that can offer [crypto services] to an institutional audience. We’ve seen an increase in activity, not only on the institutional side, but also on products that we’ve rolled out that are catered to long-term holders like staking.”
WonderFi’s Growth Amid New Regulations
Dean Skurka emphasized how the new regulations led to some necessary changes in the crypto market in his subsequent remarks. He noted:
- Earlier, long-term holders in Canada were left without services that matched their needs. This was after lending platforms like Celsius and Voyager went insolvent.
- The new regulations following these bankruptcies escalated the cost of running a crypto exchange.
- This high cost necessitated a consolidation in the crypto market.
- WonderFi has been seizing this opportunity by amalgamating several platforms to emerge as a clear market leader with the ability to operate in a compliant environment.
WonderFi’s Recent Acquisitions
Over the past two years, WonderFi has taken over several smaller Canadian crypto exchanges. It purchased Bitbuy and Coinberry in 2022 and announced the merger with Coinsquare and Coinsmart in April 2023.
Future Direction of Institutional Interest in Crypto
The CEO of WonderFi is optimistic about the continuance of this new trend of hospital interest in crypto, thanks to the regulatory direction the Canadian government has taken. His assertion is that “as that infrastructure is established, institutional participants will continue to take it more seriously.”
Note: The content of this article is based on an interview conducted by Sam Bourgi.