Market factors and regulation fuel growth of retail crypto market in Canada

The outlook for retail cryptocurrency trading in Canada appears promising, as a combination of factors, including the local regulatory landscape, is expected to drive market expansion.
Dean Skurka, the CEO of WonderFi, a Canadian cryptocurrency platform, expressed optimism about the resurgence of retail interest in the sector. Speaking to Sam Bourgi of Cointelegraph at the Collision event in Toronto, Skurka highlighted the fortuitous alignment of circumstances in Canada for the crypto industry.
Skurka attributed this positive outlook to the recent interest rate cut by the Bank of Canada, resulting in increased discretionary spending among the population. Additionally, the growing popularity of Bitcoin (BTC) and Ether (ETH) exchange-traded funds has made cryptocurrencies more appealing to a wider audience. The upcoming BTC halving event is also anticipated to bolster the retail market further.
While acknowledging that these changes will not occur overnight, Skurka pointed out the signs of growing public acceptance of cryptocurrencies. WonderFi experienced a surge in new user registrations coinciding with the record high price of BTC. Skurka projected continued growth in the retail market over the next six to twelve months.
Having received early support from billionaire Kevin O’Leary, WonderFi has expanded its portfolio by acquiring several prominent cryptocurrency firms, such as Coinsquare, Bitbuy, and Coinberry. The merger with Coinsquare in July 2023 enabled WonderFi to consolidate these entities into a single regulated platform under the oversight of the Canadian Investment Regulatory Organization.
In addition to its domestic operations, WonderFi is exploring opportunities in the Asia-Pacific region. Skurka noted the more advanced regulatory framework in Canada compared to some Asian markets, which will inform the company’s strategy for expansion. WonderFi plans to disclose its activities in the Asia-Pacific region in the coming months.
Despite the positive outlook, some industry experts have expressed reservations about the regulatory environment in Canada. Recent rules introduced by the Canadian Securities Administrators led to the departure of several crypto firms from the country earlier this year. However, Skurka remains confident in the regulatory clarity in Canada, which he believes is attracting institutional investors to the cryptocurrency space.