Increasing interest from financial institutions
Canada is seeing a surge in interest from financial institutions in the cryptocurrency space as regulatory clarity emerges in the country, according to WonderFi CEO Dean Skurka. In an interview with Cointelegraph at the Blockchain Futurist Conference in Toronto, Skurka noted that his exchange has witnessed a rise in trading activity by institutions, rather than retail investors. He explained that institutional investors are more immune to market sentiment and trends, and they take a more fundamental approach to their investments. Skurka believes that this shift in the client base is the result of clear regulations.
Clear regulations as a boon for WonderFi
While the Canadian government has faced criticism for allegedly imposing challenging regulations on crypto exchanges, Skurka sees clear regulations as a positive development for WonderFi. He mentioned that the licenses held by his company restrict the number of platforms that can offer crypto services to an institutional audience. Skurka also highlighted an increase in activity on products designed for long-term holders, such as staking. He believes that until recently, long-term holders in Canada lacked suitable services, but the new regulations have created opportunities for WonderFi.
Consolidation and scale to handle new costs
Skurka mentioned that the cost of running an exchange has increased due to new regulations implemented following the bankruptcy of lending platforms like Celsius and Voyager. He believes that the crypto market needs to consolidate in order to cope with these new costs. WonderFi has been acquiring smaller Canadian crypto exchanges over the past two years, including Bitbuy, Coinberry, Coinsquare, and CoinSmart. Skurka views this consolidation as an opportunity to create a clear market leader that can function in a compliant environment.
Institutional interest expected to continue
The WonderFi CEO predicts that the current trend of institutional interest in crypto will continue in the future, thanks to the direction taken by the Canadian government. Skurka believes that as the infrastructure for crypto is established, institutional participants will increasingly view it as a serious asset class.
This article is based on an interview conducted by Sam Bourgi.
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