Cryptocurrency Adoption on the Rise in Canada: KPMG Survey
A recent survey by KPMG Canada and the Canadian Association of Alternative Assets and Strategies (CAASA) has revealed a surge in crypto adoption in Canada. The survey highlights an increase in crypto services offered by financial institutions and a growing number of institutional investors adding digital assets to their portfolios.
In 2023, 22% more financial institutions in Canada provided crypto services compared to 2021. Additionally, 26% more institutional investors included digital assets in their portfolios. Notably, 40% of institutional investors had direct or indirect exposure to cryptocurrencies in 2023, a significant increase from 31% in 2021.
The survey suggests that the recent crypto market rally, combined with rising inflation and concerns about U.S. debt, has likely contributed to the increased interest in cryptocurrencies as an alternative asset class. Kunal Bhasin, partner and co-leader of KPMG Canada’s Digital Assets practice, commented that the crypto winter of 2022 had a ‘cleansing effect on the industry.’
The survey also revealed that 50% of financial services firms now offer at least one crypto service, up from 41% in 2021. Furthermore, 48% of the firms offered custody, clearing, and settlement services in 2023, compared to only 33% in 2021. This indicates that financial institutions are increasingly recognizing the demand for crypto-related services.
Overall, the KPMG survey underscores the growing acceptance and adoption of cryptocurrencies in Canada. The positive regulatory environment and the increasing involvement of institutional investors are key factors driving this surge in crypto usage.
