WonderFi’s Layer-2 ambitions aim to bridge centralized and on-chain finance, while the Canadian crypto market evolves with regulatory hopes and expansion into Australia.
Bringing Users Onchain: WonderFi’s Layer-2 Ambitions and Canada’s Crypto Evolution
WonderFi’s CEO, Dean Skurka, outlines the firm’s Layer-2 ambitions, Australia expansion, regulatory hopes for Canada, and how volatility impacts the industry.
The Path to a Seamless Bridge
When Dean Skurka joined Bitbuy in 2018, the platform had only four employees, a few thousand users, and about $25 million in trading volume. Fast-forward to today, Skurka now oversees WonderFi: A company that’s consolidated multiple Canadian exchanges, boasts 1.7 million accounts, and guards $2 billion in client assets.
Layer-2 Blockchain: Connecting Centralized and On-chain Finance
WonderFi is building a zkSync-powered Layer-2 to merge centralized and on-chain finance. Skurka says the firm’s knowledge of running trading platforms, regulatory credibility, and asset base gives it an edge over other Layer 2s connecting DeFi.
Unlike some other rival Layer 2 chains launched with splashy token incentives or VC hype, Skurka says WonderFi’s approach is more grounded and long-lasting. It plans to foster long-term use through builder incentives, hackathons, and ecosystem support.
Centralized vs Decentralized Exchanges: An Extension of Each Other
Rather than viewing decentralized exchanges as competitors for centralized exchanges, Skurka sees them as extensions. Centralized exchanges provide the bridge for first-time users to go from buying and selling crypto on regulated and trusted platforms to on-chain activities that open up more innovative new products.
“[Centralized exchanges] are building out the components that will allow their users to seamlessly interact on chain, but at the same time building up the the capabilities on the exchange side to look more akin to traditional financial service products, which we think will create incremental value on both sides over the next 5 to 10 years,” he said.
Evolution of Crypto in Canada
Canada has a strong crypto history—Ethereum and the first spot bitcoin ETF were both born there. It was also one of the first countries to have a regulatory framework for crypto trading platforms.
The Canadian government has implemented regulations to govern cryptocurrency transactions.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) requires individuals and businesses to report large cash transactions, including those related to cryptocurrencies.
The Income Tax Act also treats cryptocurrency as property for tax purposes.
In addition, the Bank of Canada is exploring the potential use of central bank digital currencies (CBDCs).
As of 2022, there are over 300 registered crypto trading platforms in Canada.
However, this regulatory focus may be stifling innovation, pushing projects offshore—something Skurka‘s company is actively working to change. WonderFi is now aiming to create trading and staking guidelines with regulators, giving them comfort on newer products and services.
Canada has a federal system with three branches of government: legislative, executive, and judicial.
The Canadian Constitution divides powers between the federal government and provinces.
Federal laws are enacted by Parliament, while provincial laws govern areas such as healthcare and education.
Regulatory bodies like Health Canada and Environment and Climate Change Canada oversee various industries.
Statistics show that over 70% of Canadians trust their government to make decisions in their 'best interest'.
Expanding Horizons: Australia and Beyond
Skurka isn’t stopping at Canada; he is looking to expand his company’s reach to other regions, starting with Australia—a country Skurka describes as having “clear, concise regulation” and a strong crypto adoption rate.
“Australia was a really good market for us to target initially, and from there, we’ll really look for other markets,” Skurka said. The goal is to bring users onchain and create a seamless bridge between centralized and on-chain finance.
Riding Out Volatility
Like the crypto’s 24/7 nature, a CEO’s job in this fast-paced industry is never done. For Skurka, it’s exactly what keeps him up at night: volatility—something that shapes the industry perception and sentiments.
“It’s probably just the short-term volatility that really impacts the outlook on the business and has an impact on the users, the staff, and the team morale. And so it’s really just something that we really look to to balance as best we can,” Skurka said.
However, having been in the industry since 2018 and navigating extreme ups and downs, he’s learned to ride out the volatility.
