Vancouver, the only Canadian center included in our final rankings, scored well for opportunities per capita, including crypto jobs, companies and events in our support category, and a particularly high quality of life score. But like the neighboring United States, Canada's cryptocurrency regulatory score was average, with a score of three out of five possible. The regulatory criterion included in the category of drivers is the criterion with the highest weight, which receives 35% of the total points. Another driving metric, cryptocurrency adoption, was a similar average. Thus, Vancouver moved up to 13th place overall.
For more information on criteria and how to measure them, see How We Ranked CoinDesk Crypto Hubs in 2023. Our methodology.
Despite its relatively small size, Vancouver trumps its weight when it comes to its appeal as a Canadian tech and cryptocurrency hub.
Glass City is not only one of the most convenient cities in the world, but also a hotspot for the early adoption of cryptocurrencies. It houses the world's first Bitcoin ATM, installed by Robocoin in 2013, as well as several miners, including CryptoKitties developer Dapper Labs and Hive Blockchain (HIVE).
The southwestern Canadian city on the US border is "a growing but not yet global hub," said Al Leong, chief marketing officer and board member of Web 3 Companies, who spends several months of the year there. . In Vancouver
According to commercial real estate company CBRE, in 2020 and 2021, Vancouver saw the largest growth in high-tech jobs of any city in North America. This is likely due to relatively low tax rates, world-class amenities, and a diverse population. Its geographic proximity to Microsoft's hometown of Seattle, Washington and its stunning natural beauty don't hurt either.
Read Crypto Hub 2023: Where to Live Free and Work Smart!
Cryptocurrency locals will find signs of Web3 and mass adoption of crypto throughout the city. Launched two years ago, an art installation by Colombian artist Jessica Engel turned the underside of the bridge into augmented reality exploring blockchain. Members of a Telegram group chat of 200 have reported a broader cryptocurrency meeting, with at least three Bitcoin meetings and one Ethereum meeting also taking place in Vancouver.
“Vancouver has greater access to Asia Pacific hubs and networks and appears to be acting as a launching pad for other jurisdictions, but to some extent it is working in coordination with Toronto,” Leong said. Vancouver has historically had a large Asian diaspora, including claiming to be the hometown of Changpeng Zhao, founder and CEO of Binance, the world's largest cryptocurrency by volume. Zhao moved from China to Vancouver at the age of 12 and grew up there before attending the University of Montreal. When I call him Chinese, he corrects the speaker and says that he has Canadian citizenship.
Sword of Damocles
Crypto Hubs 2023 CoinDesk focuses on every local crypto regulatory framework and mainstream crypto adoption. Unfortunately, it is on these two criteria that Canada, and therefore Vancouver, score relatively low. Indeed, Binance announced in May that it would cease operations in the country, citing the difficult regulatory environment.
“We had high hopes for the rest of the Canadian blockchain industry,” the company said. “Unfortunately, the new stablecoin regulations and investor restrictions put in place for crypto exchanges currently make the Canadian market safer for Binance.”
In February, Canadian regulators tightened rules on cryptocurrency operators, prompting high-profile exits from two other major crypto exchanges, Bybit and OKX, as well as crypto firms Blockchain.com and Paxos.
This left an opportunity for competitors like US-based Kraken to gain market share and help shape future rules. Kraken Canada CEO Mark Greenberg said he appreciates the focus on user safety in the country's directives, but says restrictions on commercial offerings make it difficult to find expansion opportunities.
Read more. Canadian Cryptocurrency Trading Platforms Face 'Tougher' Rules Under New Rules
Meanwhile, Canada's tax authorities say they have "updated" the rules for taxing cryptocurrencies, providing some details on what this means. British Columbia, where Vancouver is located, imposed an 18-month moratorium on new mining operations in December 2022, citing rising energy demand.
Despite policy changes affecting businesses across the country, Canada's response to Silicon Valley will continue to play a key role in the development of this technology.
This story originally appeared on Coindesk