Toronto has always been a place where people go to make money. From the old, well-established banks and brokerages of Bay Street to the startup-centric tech hub of Liberty Village, the city draws the ambitious who want to strike it rich. But many of Toronto’s most successful banks and brokerages were established in the 1800s, and the Liberty Village boom, although still cranking out profitable new companies, began some 30 years back in the 1990s.

What about the people looking for new ways to make money today and in the near future? In so many words, what about cryptocurrency? How is Toronto equipped to deal with the brave new world of blockchain and the daring frontier of digital assets? Is it conceivable that it will take a place alongside Dubai, Hong Kong, Miami, and Singapore as one of the world’s true crypto capitals?

Bringing some well-informed commentary to this subject is Cole Diamond, co-founder and former CEO of Coinsquare, Canada’s leading cryptocurrency exchange. Diamond spent years at the helm of Coinsquare, managing the company’s meteoric rise and securing its position as the first crypto broker-dealer and marketplace certified by the Investment Industry Regulatory Organization of Canada (IIROC), as well as the Canadian Securities Administrators (CSA). He is also the co-founder of Tetra Trust, one of the country’s pre-eminent digital asset custodians. On top of that, he’s a proud and pragmatic Torontonian, having lived in the city most of his life and chosen it as the headquarters of his marquee businesses.

“All things considered, Toronto is well-positioned to take a leading role in crypto,” says Diamond.

“In fact, in many respects it already has. Think of how the city has embraced fintech and digital currencies. We have major players in the space, regulatory frameworks that are evolving, and a growing talent pool of innovators ready to disrupt traditional financial systems.”

As Diamond states, one major strength lies in the vast amount of talent the city is able to attract. Toronto and its surrounding area are replete with young minds who have studied blockchain, artificial intelligence, and other cutting-edge tech. Significantly, Vitalik Buterin, the co-founder of Ethereum, one of the largest and most influential crypto and blockchain platforms, hails from Toronto, and his enduring presence there speaks volumes about Toronto’s potential for crypto in the coming years.

The city also benefits from its status as Canada’s undisputed financial capital, which has the real-world effect of placing it at the crossroads between traditional finance and emergent fintech.

“What makes Toronto’s position even more promising is its evolving regulatory environment,” notes Cole Diamond. “While the global regulatory landscape for cryptocurrency is still finding its footing, Canada has taken proactive steps in establishing a clearer framework for crypto companies.”

Indeed, with the regulatory approval of Bitcoin ETFs and exchanges like Wealthsimple and Coinsquare working within the rules already devised by Canada’s relevant governing agencies, Toronto’s crypto players are able to operate in a well-structured, secure environment. It’s a position that fosters innovation, institutional support, and the kind of venture capital interest that crypto-oriented cities like Austin or Zurich cannot claim.

Despite the clear advantages, Toronto faces stiff competition from other cities that have worked hard to position themselves as crypto-friendly jurisdictions, luring businesses with tax incentives, more relaxed regulations, and favorable policies that actively promote crypto development. In comparison, Toronto’s regulatory environment, while far from unfriendly, remains stricter and more difficult to navigate. Add to that, Canadian banks have historically been cautious about engaging with crypto companies, which makes it more difficult for businesses to grow and access capital at the same pace as their counterparts in more crypto-lenient cities.

Despite these challenges, Cole Diamond remains optimistic about Toronto’s future in the crypto sphere.

“We’re in a good position, but there’s still a lot of work to be done. If the regulatory environment evolves to become more flexible and the city becomes even more attractive for crypto businesses, Toronto could easily compete with any other city on the planet,” he says confidently.

As the city continues to nurture its crypto ecosystem and adapt its regulatory laws to changing factors, Toronto’s potential in the worldwide push for crypto development is indisputable. With its pre-existing financial infrastructure and a steadily expanding talent pool, the city is primed for future success.

Or, in the words of Cole Diamond, “The global crypto race is far from over. In fact, we’re still on the first leg. Under the right conditions, it’s possible Toronto could be one of the world’s biggest cryptocurrency hubs. By the mid-21st century, this city could be to digital assets what Detroit was to automobiles in the mid-20th century.” As is the case with all exciting new industries, the future has yet to be written and only time will tell.