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
Standard Chartered CEO Backs Tokenized Finance in Hong Kong
Tokenization | Nov 3, 2025
Image: Freepik/lifeforstock
Standard Chartered CEO Backs Tokenized Finance In Hong Kong
On November 3, 2025, speaking at Hong Kong FinTech Week 2025 (Nov 3-7), Standard Chartered Group CEO Bill Winters told attendees that the bank is working with regulators and infrastructure providers across Asia to make tokenized settlements operational.
“Our belief, which I think is shared by the leadership of Hong Kong, is that pretty much all transactions will settle on blockchains eventually, and that all money will be digital,” adding that institutional adoption is now driving the market.
See: Crypto Finance Finding Scale and Clarity in 2025
Digital currency momentum is building across Asia. According to Quartr, during Standard Chartered’s Q3 2025 earnings call, he emphasized that blockchain and tokenized asset infrastructure are “a core part of our payments and securities business strategy.” The bank’s venture arm SC Ventures has invested in settlement platforms and digital asset custody providers in Hong Kong, Singapore, and the UAE to prepare for institutional scale.
Tokenization Becomes Core Financial Infrastructure
Hong Kong’s digital finance policy is moving from experimentation to scale. The Securities and Futures Commission (SFC) circular on expanding virtual asset trading platform services removes earlier barriers for banks and licensed exchanges to issue and custody tokenized securities under supervision. It also aligns with Hong Kong’s new stablecoin licensing regime, which took effect on August 1 2025, creating a pathway for licensed entities to offer regulated stablecoins towards broader public access.
Hong Kong Monetary Authority chief executive Eddie Yue unveiled the city’s Fintech 2030 strategy built on four pillars. Data, AI, Resilience, and Tokenization (DART) and announced the next phase of the Project Ensemble pilot (read his full speech here).
The pilot now extends beyond proof-of-concept to real transactions in tokenized deposits and money-market funds between major banks and corporates. Yue said tokenization will make bond settlement and trade finance “faster, cheaper, and safer” while preparing the city for cross-border interoperability.
Implications for Canada
Hong Kong’s strategic approach shows how regulatory clarity and infrastructure readiness can draw investment and accelerate industry innovation. The model offers a blueprint for Canada to move beyond regulatory sandboxes and innovation hubs toward supervised tokenized settlement and digital-asset custody frameworks built into the financial system.
See: NCFA Canada and TheBlock Partner to Build a Global Bridge for Tokenization
For Canadian fintechs and banks, staying competitive will depend on how quickly policymakers complete payment modernization, establish clear rules for stablecoins and tokenized assets, and open Payments Canada’s systems to more participants through the Real-Time Rail.
Remember, Standard Chartered is already building tokenized-finance capabilities across Asia. Institutions will need to update their core systems to benefit from faster cross-border and digital settlement and to connect with the growing global networks for tokenized finance.
Outlook
The SFC and HKMA frameworks create one of the world’s most coordinated environments for institutional blockchain adoption and banks like Standard Chartered are positioning themselves to capitalize on that alignment.
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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Loon Raises $3M and Acquires CADC Stablecoin
Stablecoins | Nov 3, 2025
Image from Loon press release
Canada’s Stablecoin Activity Increases as Loon Builds Regulated Digital Dollar Ahead of the Federal Budget
On October 27, 2025, Loon announced a CAD $3 million pre-seed round and the acquisition of the CADC stablecoin, led by Version One Ventures with participation from Garage Capital and Canadian angels.
The company acquired CADC, a stablecoin originally launched by Paytrie Inc. in 2021 that has processed more than CAD $200 million in on-chain transactions, according to the announcement.
See: Stablecoin Payments Have Wings – Are You Ready?
Loon aims to develop a Canadian-dollar stablecoin that operates under Canadian regulation and has pre-filed a prospectus with the Alberta Securities Commission as the first step toward full approval. The company says it is working closely with regulators to define clear standards for the stablecoin sector and strengthen accountability across the industry.
Short term priorities for Loon include onboarding distribution partners (exchanges, fintech apps, liquidity providers) and building trust through clear rules, transparent reserves, and reliable operations in a market long dominated by US dollar stablecoins.
Connecting Canadian Banking to Blockchain Rails
CADC allows users and businesses to send and receive Canadian dollars on blockchain networks instantly and at any time. This means a developer in Halifax can receive payment from a client in Vancouver within seconds, or a Toronto-based importer can complete transactions with suppliers abroad without relying on traditional banking hours or payment delays.
The system is designed to provide continuous access, real time settlement, and deeper liquidity, while maintaining wholesale-level foreign exchange efficiency.
See: Canada’s Payments Innovation Push Gains Speed
Kevin Zhang, CEO of Loon:
"Canada is at a crossroads. We can either remain dependent on foreign financial infrastructure or build our own sovereign rails for the digital era. By providing a regulated, trusted digital Canadian dollar, we're unlocking the next generation of innovation, from payments to capital markets."
Stablecoin Activity Increasing Across Canada Ahead of Budget 2025
The timing of Loon’s raise aligns with national policy attention on digital assets. The Bank of Canada urged policymakers to weigh the merits of federal stablecoin regulation in September 2025, showing growing support in Canadian-dollar models. See NCFA’s analysis of Canada’s stablecoin race entering a critical phase, which describes how policy and market interest are converging.
Also see NCFA’s recent coverage of banks and fintechs backing a regulated stablecoin with Tetra Digital Group, expanding interest in compliant Canadian-dollar payment infrastructure. Related initiatives include Stablecorp’s $5M raise to accelerate QCAD adoption, VersaBank’s plan to launch VCAD, the world’s first bank issued deposit based digital currency, and its U.S. pilot of tokenized deposits, activity all contributing to Canada’s development of regulated digital currency infrastructure.
The policy backdrop includes expectations that the upcoming federal budget 2025 will address financial services modernization and digital assets.
Closing Thought
Canada is moving from talk to implementation on regulated digital currency rails. Loon's pre-seed round confirms that a trusted CAD-backed model can attract capital while engaging with regulators. Stablecoins are practical and essential financial infrastructure with potential benefits for payments, cross-border settlement, and market efficiency, all of which align with the need to focus on innovation, access to capital, and national competitiveness.
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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Global Payments to Reach $2.4 Trillion and Tokenized Future
Payments Report | Oct 30, 2025
Image: The Future is (Anything but) Stable (BCG Global Payments 2025 report)
BCG’s 2025 Global Payments Report Shows Tokenization, Real-time Systems, and Digital Assets Driving a $2.4 Trillion Market
On Sept 22, 2025 the Boston Consulting Group (BCG) released the Global Payments Report 2025 titled 'The Future is (Anything but) Stable" (37 page PDF report) reported that worldwide payment revenues totalled about $1.9 trillion in 2024 and are expected to exceed $2.4 trillion by 2029.
Growth is slowing however from nearly 9% a year to around 4%, highlighting the end of a rapid growth period where payment providers earned more interest income on money moving through their systems. The next phase will be led by innovation, not momentum.
See: Key Findings from 2025 Advanced Payments and Fintech Survey
According to the report, the foundations of global payments are being rebuilt through real-time transactions, tokenized assets, and smarter compliance. For Canada, the domestic system is stable but slower than peers in Asia or Europe. Modernization can help ensure that Canadian fintechs and banks remain competitive as value begins to move across programmable digital networks.
Ten Stats That Define the New Reality
- Global payments revenue is projected to reach $2.4 trillion by 2029 (up from about $1.9 trillion in 2024).
- Real-time account-to-account payment volumes grew 40% globally in 2024, led by adoption in Asia and Europe.
- Payments fintechs generated about $176 billion in revenue in 2024, growing roughly 23% year over year.
- By 2027, up to 50% of acquiring revenue is expected to come from embedded finance and value-added services.
- Cross-border real-time payment networks now cover more than 60 countries, enabling up to 30% of new transaction-related revenue globally.
- Stablecoins reached about $210 billion in market capitalization in 2025, processing over $26 trillion in annual transactions.
- Tokenized real-world assets, including money market funds and private credit, total around $28 billion in 2025.
- Agentic AI now influences over 50% of e-commerce spending, driving more than $1 trillion in agent-assisted commerce annually.
- Automated compliance systems are helping global payment providers cut manual review and onboarding costs by up to 60%.
- Cost excellence and automation can raise profit margins by 30% to 40%, freeing capital for reinvestment and growth.
See: Bank of Canada’s PSP Registry Goes Live Under RPAA
These above trends describe a payments ecosystem that is no longer growing by size but by sophistication.
In Focus: Tokenization Is Rewriting the Rules of Finance
Between pages 9 and 13, the report explains that tokenization has moved from pilot projects to real adoption.
Stablecoins process over $26 trillion in yearly transactions and are being used for remittances, business payments, and treasury operations. The combined value of circulating stablecoins is close to $270 billion, with US dollar-linked tokens like USDT and USDC dominating.
Tokenized funds hold more than $3 billion in assets, and private credit tokenization has reached $10 billion. In addition, governments in Singapore, Hong Kong, and Europe are issuing digital bonds under clear frameworks such as MiCA.
More than 10 countries have live central bank digital currencies, and over 90% of central banks are testing or building them. Global banks including Citi, HSBC, and UBS are already piloting tokenized deposits connected to their main systems.
See: NCFA Canada and TheBlock Partner to Build a Global Bridge for Tokenization
For Canada, tokenization could open the door to trusted digital assets that fit within the existing regulated structure. It allows for faster, safer movement of money and investment while maintaining transparency and oversight. By building policy alignment and open access, Canada can turn this technology into a tool for inclusion, without being left behind.
The Opportunity
The report points to a global race to connect innovation with regulation. Countries that create clarity around digital assets, tokenized deposits, and real-time infrastructure will attract investment and improve access to capital. For Canada, this means progressing digital finance policy and expanding participation in global payment corridors. The combination of tokenized assets, instant settlement, and data-driven compliance could give Canadian participants a stronger role in international markets.
Canada is already making strides in payments innovation. The Bank of Canada and other regulators are working to bring more providers onto national infrastructure and exploring tokenisation and stablecoins. With the federal 2025 budget scheduled for early next week on November 4, there is hope that policymakers will signal clearer guidelines or incentives for stablecoins and digital assets that could boost competitiveness and access to capital for Canadian fintechs.
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 aa 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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Get a Crypto License in Estonia – full legal setup and MiCA-ready strategy
Oct 30, 2025
Estonia has become one of the most attractive EU hubs for crypto businesses: digital-first processes, e-Residency, and clear MiCA-aligned rules make it ideal for launching compliant exchanges, wallets and custody services.
Thanks to this, obtaining a crypto license in Estonia is profitable, fast, and legal.
Prifinance leverages this environment to deliver end-to-end support - from company formation and AML/KYC frameworks to regulatory communication and post-authorization compliance.
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Advantages of working with Prifinance |
Numbers |
| Experience in international consulting | 30 years |
| Completed projects | 10,000+ |
| Crypto licenses obtained | 400+ |
| Supported jurisdictions | 40 |
| Successful cases on complex requirements (including MiCA) | 100+ |
| Lawyers, auditors, and consultants | 100+ |
This track record ensures brand reliability and practical experience when you scale in Europe.
Why an Estonian crypto license matters
A MiCA-compliant Estonian license (CASP/VASP) gives lawful access to the EU market with passporting rights, clear consumer protections, and harmonised reporting requirements. You need this license when your project: accepts fiat/crypto from users, offers custody or wallet services, executes crypto-to-fiat or crypto-to-crypto trades, processes remittances, or markets token sales to EU residents.
See: Quebec Decision Challenges Canada’s Crypto Rules
Beyond legal permission, the license demonstrates institutional-grade governance - strict KYC, continuous transaction monitoring, secure IT architecture, and appointed compliance officers - which improves access to banking, liquidity partners and institutional clients. These elements are crucial at launch and become non-negotiable as trading volumes, AML scrutiny, or institutional relationships grow.
Why Estonia - practical benefits
- Digital processes & e-Residency: remote company setup and digital reporting reduce time and travel.
- Speed & predictability: streamlined applications and a generally faster review timeline help time-to-market.
- Tax advantages: 0% corporate tax on retained earnings supports reinvestment and growth.
- Regulatory credibility: public VASP registers and strict AML standards enhance trust with banks, partners, and clients. These jurisdictional advantages combine to make Estonia particularly attractive for remote-first teams and cross-border service providers.
What Prifinance does for you
We prioritise your brand and market credibility from day one. That means not only preparing an application that satisfies regulators, but also shaping how counterparties and clients perceive you: professional legal structure, transparent ownership, robust compliance policies, auditor-ready documentation, and clear public-facing materials.
Our offering includes: company incorporation in Estonia, preparation of AML/KYC and internal control manuals, recruitment and registration of key personnel, technical security checklists, liaising with the FIU/FSA, and post-license support. By pairing compliance with marketable governance, we help your brand convert regulatory compliance into a competitive asset.
Proof points & partners
Prifinance works with major banking and fintech partners and maintains long-term relationships with thousands of international clients.
Our partners include leading financial and technology companies such as CIM Banque, Commerzbank, Payoneer, OCBC Bank, Binance, Mashreq, Odav Print, Montify, and Blockchain Life.
Our client feedback and case experience show smooth licensing processes and effective post-license support - a practical advantage when regulators request clarifications or audits.
Visit https://prifinance.com/en/cryptocurrency-license/ to request a tailored licensing plan, get a cost estimate, and start the application process: Prifinance provides full-cycle support for Estonia CASP/VASP applications and post-authorization compliance. Send a request through our site to receive a personalized proposal.
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 aa 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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Regulatory Fairness Returns as SEC and CFTC Realign
Regulation | Oct 27, 2025
Image courtesy of AI
SEC to Reform the Wells Process as Trump Taps Michael Selig to Lead the CFTC
On October 7, 2025, SEC Chair Paul Atkins talked about major changes to the Wells process in an SEC keynote address to the A A Sommer Jr Lecture at Fordham School of Law, including a new enforcement framework built around due process and transparency. Atkins described the Wells process as a safeguard that prevents the Commission from becoming “policeman, prosecutor, judge, and jury all in one.” He also emphasized that enforcement should focus on actual misconduct and investor harm rather than minor or technical violations.
The reforms include doubling the time allowed for responses, expanding access to testimony and investigative materials, and offering meetings with senior enforcement leadership before a recommendation is made. A BakerHostetler analysis and Dechert commentary confirm that these measures address years of criticism that the process was opaque, one-sided and unfair.
See: SEC Clears Path for Fast Track Crypto ETFs
By aligning the Wells process with constitutional principles of fairness and proportionality, the SEC is signaling a more predictable approach that could encourage compliance and reduce costly disputes.
From Crackdown to Clarity in Crypto
Few sectors highlight the importance of fair process more than digital assets. In 2024 and 2025, the SEC issued several Wells notices that dominated headlines and influenced global sentiment toward crypto markets (aka regulatory crackdown). NCFA covered how these actions impacted both perception and investment, such as the various Wells notices received that preceded litigation to Coinbase (March 2023), Robinhood (May 2024), and Uniswap Labs (April 2024), each becaming examples of what critics called “regulation by enforcement.”
The market reaction was usually immediate and swift. Share prices fell sharply after each announcement, venture funding slowed, and token listings became more conservative. The consistent theme across these cases was the lack of procedural clarity, leaving firms to interpret opaque standards that often changed after the fact. Not all inquiries ended with penalties. The SEC’s decision to close its stablecoin investigation in the Paxos BUSD (July 2024), suggested that avoiding enforcement was possible in limited cases.
See: U.S. Maps Out Plan to Lead World in Crypto
Atkins planned changes come amid an administration that has declared support for digital assets and innovation and issued a series of policy reversals and case dismissals since taking office, including a full unconditional pardon for Binance founder, CZ most recently. The new government enacted the country's first comprehensive stablecoin law, the GENIUS Act, forming a statutory foundation for reserve-backed tokens. In February 2025, U.S. crypto czar Sacks outlined a coordinated plan for risk based supervision and technology neutral rules. Together these measures announced by the SEC signal a coordinated push by the administration toward fairness, predictability and genuine regulatory clarity.
A New Direction at the CFTC
Two weeks after Atkins’ address, as reported by Politico, the Trump administration announced plans to nominate Michael Selig as chair of the Commodity Futures Trading Commission who brings experience in digital asset policy and his focus on aligning derivatives oversight with technological modernization.
If confirmed, Selig’s appointment could enhance coordination between the CFTC and SEC on digital assets and tokenized products. A combined regulatory environment based on fairness, due process, and interagency cooperation that could stabilize U.S. market confidence after years of policy divergence and frustrated investors and innovators.
Why It Matters
Regulatory predictability is essential for innovation and investment. When enforcement processes are clear and timelines are known, firms can allocate resources more effectively between compliance and product development (and not moving goal posts).
The Wells process reforms and the CFTC nomination together are clear signs that the days of regulating crypto by fear and enforcement are over. If implemented as anticipated, these policies could restore the trust between market participants and regulators, a prerequisite for sustainable capital formation. Impacted fintech leader should update internal playbooks to reflect the new Wells response timeline, including the opportunity for earlier meetings and white paper submissions.
See: CSA Reminds Crypto-backed Lenders of Securities Law Duties
Boards can establish governance protocols based on four week response periods and expect data-driven engagement with enforcement staff. For investors, a fairer U.S. digital asset environment could deepen capital pipelines and improve valuations in the digital finance sector.
For continued updates on regulatory developments and their implications for fintech and digital markets, subscribe to NCFA’s weekly newsletter for verified analysis and insights.
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 aa 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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NCFA Canada and TheBlock Partner to Build a Global Bridge for Tokenization
NCFA Canada | Oct 27, 2025
Toronto, Canada and Dubai, UAE – October 27, 2025 – The National Crowdfunding & Fintech Association of Canada (NCFA), a non-profit fintech network, and TheBlock, a Dubai-based virtual asset hub, today announced a strategic partnership to expand cross-border collaboration, education, and adoption of tokenized real-world assets (RWA).
Expanding Global Access to Tokenization
This partnership creates a bridge between Canada’s fintech and investor community and Dubai’s growing hub for tokenized assets. By combining NCFA’s network of entrepreneurs, investors, regulators, and industry leaders with TheBlock’s expertise in tokenization and capital markets, the collaboration will help firms explore opportunities in RWA, broaden investor participation, and better understand global adoption trends.
Craig Asano, NCFA’s founder and CEO:
“Education and collaboration are central to this initiative. By working with TheBlock, we can help firms explore tokenization use cases, engage more effectively with international investors, and build confidence in this fast-evolving market.”
Farbod Sadeghian, CEO of TheBlock, added:
“Our mission is to open global pathways for firms and innovators to participate in tokenization. By Canada’s fintech ecosystem to international markets where adoption is advancing quickly, we’re creating practical opportunities for companies to explore, experiment, and grow.”
A Shared Purpose
As tokenization and real-world assets power digital finance, education and global collaboration are critical to ensure firms, investors, and policymakers are equipped for the transition. NCFA and TheBlock will co-develop initiatives such as joint knowledge programs, workshops, and ecosystem-building events to support this evolution.
About NCFA Canada
The National Crowdfunding & Fintech Association of Canada (NCFA) is a non-profit fintech ecosystem that supports and amplifies fintech, alternative, digital, and AI-driven finance globally. NCFA provides education, market intelligence, advocacy, networking, and funding opportunities to entrepreneurs, investors, regulators, and innovators.
About TheBlock
TheBlock is a Dubai-based virtual asset hub focused on tokenization, capital readiness, advisory, and ecosystem building. With a mission to connect global markets and foster adoption of real-world assets through tokenization, TheBlock provides education, programs, and services to companies, investors, and innovators shaping the future of finance.
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 aa 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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Canada Issues Record Penalty to Crypto Exchange Cryptomus
Compliance Enforcement | Oct 24, 2025
Image: Freepik/Rawpixel.com
FINTRAC’s Historic $177 million Fine Against Cryptomus
On October 16 2025, Reuters reported that the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed a penalty of C$176,960,190 on Xeltox Enterprises Ltd., which operates as Cryptomus (formerly Certa Payments Ltd), for serious failures to file required reports under Canada’s anti-money-laundering regime. The decision was announced publicly on October 22 2025 after a compliance examination under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. FINTRAC described it as the largest penalty in its history.
FINTRAC's Compliance Review Findings
FINTRAC found that Cryptomus failed to submit suspicious transaction reports on 1,068 separate occasions during July 2024 when there were reasonable grounds to suspect links to money laundering or terrorist activity financing. It also failed to comply with a Ministerial Directive, did not maintain or update written compliance policies approved by a senior officer, and failed to assess and document the risk of money-laundering offences within its operations.
See: BIS Proposes Scoring Model for Crypto AML
The examination also revealed that Cryptomus did not file a notification of changes to its registration information and failed to report 1,518 large virtual-currency transactions above $10,000 in July 2024. These breaches were linked to laundering proceeds from crimes including child sexual abuse material, fraud, ransomware payments, and sanctions evasion. Cryptomus had already been barred by the British Columbia Securities Commission from securities trading earlier in 2025.
Sarah Paquet, Director and Chief Executive Officer, FINTRAC:
“We are committed to working with our domestic partners and international allies to protect the safety of Canadians and the security of Canada’s economy. Given that numerous violations in this case were connected to trafficking in child sexual abuse material, fraud, ransomware payments and sanctions evasion, FINTRAC was compelled to take this unprecedented enforcement action.”
Sign of Stronger Enforcement Approach
FINTRAC confirmed that in 2024–25 it issued 23 Notices of Violation of non-compliance, the largest number in a single year since it received legislative authority to levy penalties in 2008. Those penalties totalled more than $25 million before the Cryptomus case. With enforcement ramping up, it appears the agency’s oversight is widening to include both traditional financial institutions and virtual asset service providers.
As FINTRAC noted in its statement, the rapid expansion of Canada’s virtual-currency sector also brings higher risks of money laundering, terrorist financing, and sanctions evasion. The agency said strong compliance frameworks are essential to protect Canadians and safeguard the financial system.
See: CSA Reminds Crypto-backed Lenders of Securities Law Duties
While the fine demonstrates that Canada can act decisively after a compliance failure, it also raises questions about how proactive oversight can become. FINTRAC’s review was retrospective, relying on an examination of past activity. With digital asset volumes growing and transactions moving across borders instantly, regulators need stronger real-time tools, data sharing systems, and cooperation between provincial, federal, and global agencies.
Outlook
Effective supervision must keep pace with the speed and anonymity of crypto markets without discouraging legitimate fintech innovation. For the Canadian fintech community, understand that compliance is vital for sustained growth and is a competitive necessity. Firms that verify client identities, maintain risk assessments, and document transactions can not only avoid enforcement but also build trust with users and partners.
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 aa 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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