Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Stablecoins, Metaverse, NFTs
Sam Bankman-Fried’s Parents Face Civil Charges
Crypto | Nov 15, 2023
Image: Unsplash/Freepik
Joseph Bankman and Barbara Fried are facing civil charges related to the collapse of their son's crypto empire, FTX.
In the aftermath of Sam Bankman-Fried's (SBF) downfall in the cryptocurrency industry, the focus has shifted to his parents, Joseph Bankman and Barbara Fried. Known for their academic contributions at Stanford Law, they now find themselves embroiled in their own legal drama linked to their son's financial misadventures.
Accused of benefiting from their son's empire, they allegedly received a cash gift amounting to $10 million and purchased a Bahamian property valued at $16.4 million for them. This property has become a subject of legal contention, with FTX investors and customers filing a lawsuit to reclaim it, as stated in the legal documents.
See: SBF’s Trial: Insight into Chaos & Mismanagement
While not criminally charged, the civil allegations against Bankman and Fried carry serious implications, both legally and reputationally.
According to the civil lawsuit, Fried, who is both an ethics expert and a co-founder of a Democratic fundraising group, counseled her son on how to obscure campaign contributions. This advice is part of a scheme that led to guilty pleas from two of his senior associates.
In a statement, attorneys representing Bankman and Fried have categorically denied the allegations in the civil lawsuit, declaring them as 'entirely untrue.' As of now, neither of them faces any criminal charges.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Moody’s Analytics on Stablecoin Depegging
Stablecoins | Nov 14, 2023
Image: Unsplash/CoinWire Japan
Moody's Analytics reports 609 instances of large fiat-backed depeggings so far in 2023, launches digital asset monitor tracking system
In 2023, the cryptocurrency market has witnessed a significant number of depegging events among large-cap stablecoins. Depegging refers to the fluctuation of stablecoin prices by more than three percent in a day against their fiat pegs, highlighting the volatile nature of these digital assets.
Stablecoins play a crucial role in the cryptocurrency markets, accounting for about 10 percent of the crypto market and most on-chain activity. However, their instability, as evidenced by frequent depegging events, poses significant risks. These events can cause market panic, as seen in May 2022 when TerraUSD's peg against the USD shattered, leading to substantial losses in the crypto market.
Moody's Launches Digital Asset Monitor
In response to the growing need for risk assessment tools in the volatile stablecoin market, Moody's Analytics has launched the AI-enabled Digital Asset Monitor (DAM). This tool is designed to predict the probability of a stablecoin depegging from a fiat currency within a 24-hour time horizon. The launch version of DAM tracks 25 fiat-backed stablecoins, including Tether, USDC, and PayPal Coin, which represent over 92% of the total stablecoin market capitalization.
See: UK’s Future Crypto and Stablecoin Regulation
Moody's DAM provides real-time insights into various aspects of stablecoins, including market and liquidity dynamics, the stability of the issuer, the custodians holding the stablecoin's assets, and the quality of these reserves. The tool combines off-chain and on-chain risk factors, leveraging Moody's expertise in global integrated risk assessment.
The Future
Despite the challenges posed by depegging events, the stablecoin market continues to grow and evolve. With tools like Moody's DAM and increased transparency in the sector, there is potential for greater stability and reliability in stablecoins.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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UK Leading Charge in Global Crypto Tax Crackdown
Crypto Taxes | Nov 13, 2023
Image created by DALL-E3
On November 10, 2023, the United Kingdom has reached a landmark agreement with 48 countries through a joint statement, aimed at combating the use of crypto-assets by criminals to evade and avoid taxes amounting to billions.
The United Kingdom has taken a leading role in an international effort to combat tax evasion in the realm of cryptocurrencies. This initiative, announced on November 10, 2023, marks a significant step in addressing the challenges posed by the digital economy to global tax systems. The UK's commitment to this cause is not a new endeavor. It follows the UK's influential role in the historic G20/OECD global tax deal in 2021, aimed at clamping down on corporate tax avoidance. This deal ensured that taxes are paid correctly and fairly, particularly by large multinational enterprises.
See: Canada: Release Of Draft Tax Legislation For Consultation including GST/HST for Crypto Mining
The rapid growth of the global crypto market has brought new challenges in tax compliance. Estimates suggest that tax non-compliance on crypto-asset holdings could range from 55% to 95%. The CARF aims to address this gap, potentially recouping hundreds of millions of pounds for the UK.
The Crypto-Asset Reporting Framework (CARF)
At the heart of this initiative is the Crypto-Asset Reporting Framework (CARF), spearheaded by the UK and endorsed by the OECD. This framework is a tax transparency standard requiring crypto platforms to share taxpayer information with tax authorities. This level of information exchange is unprecedented in the crypto world and is expected to significantly enhance tax compliance.
See: New U.S. Crypto Accounting Rules Come Into Effect in 2024
The CARF is set to take effect in time for exchanges with other countries to start from 2027. It builds upon the existing Common Reporting Standard, which has already been successful in tackling offshore tax evasion, recovering almost £100 billion in additional tax revenue since 2014.
The initiative has received backing from the 'Global Forum on Transparency and Exchange of Information for Tax Purposes', a forum of 168 countries under the OECD, and has been endorsed by the G7.
Outlook
This initiative not only aims to recoup lost revenue but also sends a strong message against the misuse of digital assets for tax evasion.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Consultation: OSC Wants to Increase Fees for Crypto Firms
Regulation | Nov 10, 2023
Image: DALL-E3
The Ontario Securities Commission (OSC) has recently put forward a proposal for new fees targeting restricted dealers, including many crypto asset trading platforms.
This development is a clear indication of the increasing efforts to integrate crypto trading platforms into the regulated financial world. These fees are designed to address and recover the higher onboarding costs associated with the registration of restricted dealers, which predominantly include crypto asset trading platforms. The OSC's initiative reflects its ongoing observation of the increased regulatory costs compared to most existing market participants.
Current Fee Structure
- Today, crypto firms are subject to relatively modest registration fees, with amounts hovering around $2,600. This fee is significantly lower than the actual cost incurred by the OSC in registering these firms as dealers with specific terms and conditions.
See: Bitbuy and Localcoin Partner Boosting Crypto Access in Canada
- Firms seeking exemptions to operate as marketplaces pay fees ranging from $4,800 to $7,000, depending on the type of relief sought.
- Current fees also fall short of covering the actual costs associated with these applications.
Proposed Changes
- The proposed fee structure, however, marks a substantial increase. According to the official announcement by the OSC, the proposed amendments, if approved, would introduce two new fees for restricted dealers:
- An additional fee of $24,500 at the time of OSC registration.
- An additional exemptive relief application fee of $24,500 for restricted dealers operating as a marketplace.
- Under the new regime, crypto firms operating marketplace platforms could face up to $49,000 in additional fees.
Impact
The OSC has noted that novel businesses like crypto platforms require more resources to vet. These efforts include initiating compliance discussions, understanding novel business models, and imposing detailed obligations to mitigate investor protection risks. The proposed fees are part of the OSC's broader strategy to foster a fair, efficient, and competitive capital market while ensuring investor protection.
See:
Calgary Police and Chainanalysis Launch the Western Canada Cryptocurrency Investigations Centre
Canada to Require Pension Funds to Report Cryptocurrency Investments
Consultation
The OSC is seeking public comment on these proposals until February 7, 2024, with the new fees expected to take effect on July 2, 2024. This period of consultation offers an opportunity for stakeholders to engage with the regulator and shape the future of crypto regulation in Ontario.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Dive into the Future with Ninepoint’s ‘Web3 Explained’ Series
Web3 | Nov 9, 2023
Are you ready to embark on a journey through the intricate and fascinating world of Web3?
Ninepoint Partners has just the ticket for you with their freshly launched Web3 Explained series, now available on YouTube, X, and LinkedIn. This 12-episode educational treasure trove is your gateway to understanding the revolutionary concepts shaping our digital future.
See: Blockchain Coalition Report: The State of Web3 in the U.S. – State by State Analysis
Hosted by the insightful Alex Tapscott, each episode delves into the key components of Web3, from the complexities of digital assets and the intricacies of decentralized finance (DeFi) to the creative explosion in non-fungible tokens (NFTs) and the boundless possibilities of the Metaverse.
Web3 Explained Video Series
Episode 1: The Internet is Entering a New Era
Episode 2: What is Web3?
Episode 3: What went wrong in Web2?
Episode 4: Four Principles for a Better Web
Episode 5: Tokens: The Native Asset Class of Web3
Episode 6: The Ninepoint Web3 Innovators Fund
Episode 7: Web3 and the Enterprise
Episode 8: Web3 and Financial Services
Episode 9: Entering a New Digital Age
Episode 10: Understanding Web3 in a Historical Context
Episode 11: Giving the Metaverse a ‘Second Life’
Episode 12: Web3 and the ‘Virtual You’
In a world where the digital landscape is constantly evolving, staying informed is a necessity. Here's the Trailer:
Explore the Series Now
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Spending Bill vs. SEC’s Crypto Grip
Regulation | Nov 9, 2023
Image: Pexels/Crypto Crow
The U.S. House of Representatives has introduced a provision in the spending bill that could curtail the SEC's enforcement capabilities against crypto businesses.
This legislative maneuver aims to restrict the SEC's funding for enforcement actions against crypto businesses, a move that underscores the ongoing tension between regulatory bodies and the evolving crypto sector.
The amendment, spearheaded by Majority Whip Tom Emmer (R-Minn.), a well-known advocate for the crypto industry, targets SEC Chair Gary Gensler's enforcement-centric approach. Emmer's critique of Gensler's tactics as ineffective and overreaching reflects a broader sentiment that policy, not punishment, should guide the evolution of the crypto landscape. The Financial Services and General Government Appropriations Act of 2024, which houses this amendment, received a voice vote approval among more than 100 proposed amendments.
See: SEC Chair Gensler’s Mixed Feedback at Senate Hearing
Emmer's floor statement was unequivocal:
"My amendment prohibits the SEC from using funds for enforcement activities related to digital asset transactions until Congress passes legislation that gives the SEC jurisdiction over this asset class."
He further went onto say:
Under Gensler’s leadership, the SEC has pursued dozens of enforcement actions against the digital asset industry despite never finalizing a single rule or regulation for the industry to follow. Chair Gensler refuses to provide the marketplace with clear criteria for digital assets that he would consider to be a security. How can this industry comply if there are no rules or guidelines to follow?
See: FTX’s Possible Comeback Under Legal Scrutiny by Gensler
These statements not only challenges the SEC's current trajectory but also highlights the legislative body's intent to foster a conducive environment for crypto innovation in the United States.
Bipartisan Support Required
However, the bill's journey is far from over. It requires the Senate's endorsement, where Democrats, who are generally more aligned with Gensler, hold sway. The Senate Banking Committee Chairman Sherrod Brown (D-Ohio) and others have expressed support for Gensler's enforcement actions against crypto firms. The legislative path forward will require bipartisan cooperation to balance the need for consumer and investor protection with the industry's growth.
This legislative development arrives amidst a backdrop of heightened scrutiny and regulatory actions by the SEC, with Gensler affirming the pursuit of as many as 150 actions against crypto firms. The Congress faces a looming budget impasse, with temporary funding set to deplete by November 17, adding to the urgency and complexity of the situation.
See: SEC Drops Charges Against Ripple Execs: Crypto Regulation Shifts
Reshaping Future Policy
The implications of this legislative effort could reshape the balance of power between the crypto industry and regulatory bodies, and set the stage for future policy development in the digital asset space.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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FTX’s Possible Comeback Under Legal Scrutiny by Gensler
Crypto | Nov 9, 2023
Image: Pexels/Mikhael Mayim
SEC Chair Gary Gensler has indicated a potential pathway for the resurrection of the beleaguered cryptocurrency exchange FTX, albeit under stringent legal compliance.
This news comes in the wake of FTX founder Sam Bankman-Fried's conviction on fraud charges, casting a shadow over the crypto exchange's future.
During DC Fintech Week, Gensler emphasized the importance of adherence to the law for any parties interested in reviving FTX. His remarks, as reported by CNBC, suggest a cautious yet open stance towards the possibility of a rebooted FTX under new leadership. Gensler's comments resonate with the broader regulatory ethos that seeks to instill investor trust through transparency and accountability.
The spotlight falls on Tom Farley, a former president of the New York Stock Exchange and current CEO of Bullish, a digital asset exchange. Farley's name has emerged among a shortlist of bidders vying to purchase what remains of FTX, as per reports. Gensler's advice to Farley and any prospective leaders is clear: "Do it within the law." This directive underscores the need for proper disclosures and a strict separation of exchange operations from customer assets, a line that FTX allegedly crossed under Bankman-Fried's leadership.
See: Gensler’s Remarks at 2023 Securities Enforcement Forum
The SEC's stance is not just a response to past missteps but a forward-looking approach to regulating a domain fraught with complexities. Gensler's assertion that the crypto industry still harbors fraudsters signals a commitment to rigorous enforcement of securities laws, which he deems robust enough to handle the nuances of cryptocurrency.
As the industry reflects on the FTX saga, the SEC's legal battles with other crypto entities like Binance, Coinbase, and Ripple continue to unfold. These cases will likely shape the regulatory landscape and define the operational boundaries for crypto exchanges in the future.
For Canada's burgeoning fintech community, the unfolding events around FTX offer critical insights. They highlight the importance of regulatory compliance and the potential for recovery and innovation even after significant setbacks.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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