This Country Dominates In Capital Crypto Inflows But Interest Wanes Among Investors

Canada has built a strong regulatory framework for crypto companies to operate.

However, individual Canadian investors seem to have been losing interest in the crypto industry. Around 77% of digital asset owners regret purchasing crypto a year ago, a survey shows.

What Happened: In comparison to 2022, Canadians have indicated a lower interest in crypto investing as they are less likely to believe that it plays a key role in the economy currently or will play a role in the future.

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In 2023, 10% of Canadians owned crypto assets, vs. 13% reported in 2022. However, the mean market value has grown to $82,998 in 2023 from $52,975 in 2022.

Why It Matters: Only 34% of Canadians believe that crypto will play an important role in the future, which is lower from 49% reported in 2022. Canadians who reported their crypto-asset investments to be profitable stood at 39% compared to 46% in 2022.

The results are based on a survey conducted by the Ontario Securities Commission (OSC) on 2,360 Canadians who were selected to reflect an accurate proportion of the country’s population by gender, age, and region.

Among the recent developments in the Canadian crypto space, KPMG’s Canadian branch partnered with blockchain data platform Chainalysis to assist companies in fighting any fraud and illegal activities in the digital assets sector.

Coinshares recent data indicated that digital asset investment products saw a capital inflow of $346 million which is the highest in a consecutive nine-week rally. Canada and Germany represented 87% of the total with inflows of $199.1 million in Canada.

At a recent fireside chat in Toronto, Coinbase CEO Brian Armstrong emphasized how Canada’s streamlined regulatory approach has instilled compliance with strict investor protections. Thus, it led to major exchanges like FTX and Binance exiting the Canadian market. Coinbase officially announced operations in Canada in August 2023

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