The Bank of Canada recently unveiled a comprehensive Crypto Asset Ownership report, presenting the latest data from the year 2022. This significant publication sheds light on the ownership and usage of cryptocurrencies in the country, providing valuable insights into the evolving crypto landscape.
Insights from the Report
The official release of the report took place on July 26, making it easily accessible on the Canadian bank’s website. Prepared with meticulous attention to detail, the paper is based on data collected from the annual Bitcoin Omnibus Survey (BTCOS) conducted by the Canadian central bank.
Decline in Bitcoin Ownership
According to the report, the ownership of Bitcoin in Canada experienced a decline, standing at 10% in 2022, compared to 13% in the previous year (2021). This downward trend in Bitcoin ownership coincides with a general decrease in overall crypto asset ownership. The market’s downtrading activity and an increasingly stringent regulatory environment for cryptocurrencies are cited as contributing factors to the decline.
Popular Crypto Assets
Data from the survey, which included responses from 4,996 participants, reveals interesting trends in the popularity of crypto assets. Dogecoin (DOGE) emerged as the most sought-after cryptocurrency, followed closely by Ether (ETH) and Bitcoin Cash (BCH). Among altcoins, Ether proved to be the most acquired by Canadian investors.
Preferred Mode of Purchase
The majority of Canadians who bought cryptocurrency opted for mobile applications as their preferred mode of purchase. Despite the presence of prominent exchange Binance in Canada during 2022, Coinbase stood out as the most popular platform for acquiring Bitcoin.
Regulatory Actions by Canadian Securities Administrators (CSA)
The report also acknowledges the proactive measures taken by the Canadian Securities Administrators (CSA) to regulate the crypto industry within the country. The CSA mandated that crypto exchanges operating in Canada register as dealers or marketplaces and adhere to investor protection laws. In addition, the CSA imposed a ban on two crypto exchanges in 2022.
Impact on Leading Crypto Exchanges
The increased regulatory pressure and the challenging regulatory environment had significant implications for leading crypto exchanges operating in Canada. As a result, renowned platforms like Binance and ByBit made the decision to exit the Canadian market.
Conclusion
The Bank of Canada’s Crypto Asset Ownership report provides valuable insights into the state of cryptocurrency adoption and usage within the country. The decline in Bitcoin ownership, the popularity of specific crypto assets, and the impact of regulatory actions on exchanges all shape the evolving landscape of digital assets in Canada. As the crypto market continues to evolve, reports like these serve as essential tools to understand and navigate the dynamic world of cryptocurrencies.