Canada’s Crypto Firms Navigate Complicated Banking Landscape
In Canada, the relationship between cryptocurrency firms and the banking sector is growing increasingly complex. On one side, ATB Financial—a government-owned bank in Alberta—has emerged as a supportive ally for businesses dealing in Bitcoin, Ethereum, and other digital assets. Conversely, many of the country’s largest banks remain reluctant to engage with the crypto industry, creating a significant divide.
ATB Financial as a Key Player
A report from Bloomberg on February 6 highlighted ATB Financial’s critical role in fostering Alberta’s burgeoning crypto landscape. The bank, which boasts total deposits of $28.3 billion as of 2024, has actively catered to the needs of the cryptocurrency sector for more than six years. This proactive stance has helped position Alberta as an emerging hub for blockchain businesses. The provincial government has ambitious revenue goals, aiming to generate $3.5 billion from tech and crypto by the year 2030.
During the 2021 crypto boom, several companies made the strategic decision to relocate to Alberta to benefit from ATB’s banking services, further solidifying the bank’s reputation as an ally to the industry. However, it is important to note that despite its willingness to engage with digital asset firms, ATB Financial is still a smaller entity compared to Canada’s six largest banks, which together control over 90% of the federally regulated bank assets.
Larger Banks Hold Back
The larger Canadian banks have taken a much more cautious approach to cryptocurrency. Many of these institutions have publicly cited compliance concerns, regulatory uncertainty, and apprehension about the risks associated with digital assets as reasons for their reluctance to offer services to crypto firms. The collapse of the cryptocurrency exchange FTX in late 2022 has further entrenched these banks’ critical stance, prompting a more stringent regulatory environment for the sector.
Since November 2022, Canada’s financial regulators have stepped up their oversight, leading to new requirements for registration. In August 2023, the Canadian Securities Administrators and the Canadian Investment Regulatory Organization issued a mandate for all crypto platforms to register as investment dealers. While the industry had hoped that increased regulations would prompt banks to open up to crypto businesses, shifts in attitudes have been marginal, with banks maintaining their distance.
Darcy Daubaras, CFO of Bitcoin miner Hive Digital Technologies, articulated this frustration, noting that despite the introduction of clearer regulations, many banks continue to exhibit a risk-averse posture regarding crypto. “But with many of Canada’s largest banks having limited involvement in crypto, increased regulation may not change their risk aversion,” he stated.
The U.S. Comparison and Market Reactions
The separation in attitudes towards cryptocurrency in Canada starkly contrasts with recent policy shifts in the United States. Since Donald Trump resumed office in January 2025, several pro-crypto measures have been enacted under his administration. This development has significantly eased banking restrictions for U.S. crypto firms, gaining momentum amid a landscape of palpable optimism.
In Canada, the lack of movement in the banking sector has contributed to ongoing market uncertainty. Tensions escalated between Canada and the U.S. when Trump imposed tariffs on Canadian goods, impacting not only standard financial markets but also the crypto market, which saw significant declines in Ethereum and Bitcoin prices. A temporary reprieve secured by Canadian Prime Minister Justin Trudeau on February 3, which paused the tariffs for 30 days, has since helped stabilize market sentiments.
Conclusion
The juxtaposition of support from institutions like ATB Financial against the broader hesitation from major Canadian banks presents a challenging landscape for cryptocurrency businesses in Canada. While Alberta strives to solidify its reputation as a blockchain-friendly environment, the overarching cautiousness from larger banks underscores a significant barrier for crypto firms hoping to secure comprehensive financial services. With the regulatory framework in a state of flux and market dynamics influenced by international politics, the future of Canada’s cryptocurrency sector remains uncertain. As the industry evolves, stakeholders will be closely watching how these tensions and developments impact the broader financial ecosystem.
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