Canada's Business Climate Chokes Innovation

When Robinhood acquired WonderFi for C$250 million in 2023, some Canadians were upset that their largest crypto company was being sold to an American firm. But founder Karia Samaroo argues that this outcome was inevitable due to the country's business climate.

Samaroo points out that Canada has been losing its most talented and ambitious citizens for decades, with many moving south to capitalize on better opportunities. He believes that blocking the sale of WonderFi would not have addressed the underlying issues driving this exodus.

As he notes, building a large tech company in Canada is challenging due to weaker business investment, thinner growth capital, declining public markets, and fragmented regulation. In contrast, other countries such as the US and Singapore offer more attractive conditions for founders and investors.

The crypto market in particular has faced significant regulatory hurdles in Canada, with the country's laws being among the most demanding in the world following the collapse of Quadriga. This has led to many global exchanges exiting the Canadian market, including Binance, OKX, Bybit, and Gemini.