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
SEC Advances XRP ETF Review, Investors Await Decision
Crypto | Feb 14, 2025
Image: Freepik
SEC Acknowledges XRP ETF Filing Kicking Off Regulatory Review, Investors Optimistic
According to February 13, 2025 SEC filing No. 34-102420, the U.S. Securities and Exchange Commission (SEC) officially acknowledged a proposal from the New York Stock Exchange (NYSE) and Grayscale to introduce an exchange-traded fund (ETF) based on XRP (a cryptocurrency developed by Ripple Labs). Markets are confident that an XRP ETF is imminent which would bring XRP one step closer to becoming part of traditional investment portfolios.
See: BlackRock Expands IBIT Bitcoin ETF Offering in Canada
On January 30, 2025, NYSE Arca (subsidiary of NYSE, electronic exchange specializing in ETFs and equities) asked the SEC for permission to list and trade shares of the Grayscale XRP Trust under existing rules for commodity-based trust shares. The SEC accepted the updated proposal on February 13, 2025, starting a review process that could take up to 240 days. During this time, regulators will gather public feedback and evaluate the proposal before making a final decision.
Market Impact and Regulatory Considerations
According to Bloomberg analysts, Eric Balchunas and James Seyffart, there's a 65% chance that the XRP ETF will be approved in 2025 given the SEC's new approach towards crypto-based financial products.
On the decentralized betting platform Polymarket, there's currently a 78% of an XRP ETF being approved by Dec 31.
Sentiment of XRP's spot price is bullish and on the move. Investors looking to calculate current XRP values or conversions can use the paybis xrp calculator for quick and accurate results based on real time rates.
An XRP ETF would make XRP more accessible to institutional investors via a regulated investment vehicle. It would also increase market liquidity, reducing volatility, while also establishing a precedent for future altcoin ETFs ranging from Solana to Dogecoin.
Ripple vs SEC
Ripple Labs is still in a legal standoff with the SEC over the classification of XRP as a security with the SEC filing an appeal in January to overturn the 2023 ruling that XRP is not a security when sold to investors. However, XRP lawyers claim that the arguments largely rehash prior claims with no new substantial evidence. Given that the Trump administration's stance on crypto broadly has shifted away from a regulate by enforcement towards developing a comprehensive framework, market sentiment is relatively positive.
See: Crypto ETF Battle Intensifies with XRP Dogecoin and Solana
Notably in a related case, the SEC and Binance recently filed a joint motion to pause their litigation for 60 days, citing the new Crypto Task Force as a potential avenue for resolution. This move has led many to speculate that the SEC might adopt a similar approach in its case against Ripple, possibly pausing, settling or dismissing the lawsuit.
Final Thoughts
The SEC’s review of the XRP ETF is now open for public comments, with industry leaders, financial firms, and investors closely watching for any regulatory signals. Stay tuned for more XRP regulatory updates.
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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10 Fintech and Crypto IPOs 2025 – Boom or Bubble?
Public Market | Feb 13, 2025
Image: Freepik
A Raft of Fintech and Crypto IPOs in 2025
According to many reports online, several prominent fintech and crypto firms are espousing Initial Public Offering (IPO) ambitions to publicly list in 2025 due to recent economic conditions in public markets. Is this growth sustainable or indicative of an overheated market? Lets explore these IPO ambitions, the companies and some of the risks and considerations for issuers and investors.
See: How Fintechs Are Unlocking Value in Private Markets 2024
In 2024, the number of companies that went public in the U.S. grew significantly. According to EY, IPO proceeds jumped 45%, and the number of listings increased 40% compared to the previous year. Despite this improvement, IPO activity was still below pre-pandemic levels. U.S. News reports that Renaissance Capital is expecting 2025 to be a significant year for IPOs, estimating between 155 to 195 IPO deals that will raise $40-50 billion.
Why More IPO Ambitions in 2025?
The surge in potential IPOs this year comes down to several key factors. Economic conditions have stabilized although we've yet to see the full impact of the Trump administration's tariff and trade war. Inflation has cooled and central banks are looking to keep interest rates lower which will make it easier for businesses to raise money. The stock market has been on fire, boosting company valuations, making going public an attractive option for high growth firms looking to expand. Important to understand that many companies that initially announce IPO ambitions may not ultimately follow through on their plans, and may delay or cancel the listing. There are also concerns that high stock valuations and investor speculation could further fuel a market bubble, which many analysts have written about. So, are these IPOs a sign of longer term recovery or a more temporary reaction to positive market conditions awash in capital?
10 Fintech and Crypto IPOs in 2025
Here's a list of ten highly anticipated fintech and crypto IPOs slated for 2025 with each offering a unique opportunity and set of risks.
1. BitGo (USA 2013)
BitGo is a leading crypto custody firm providing multi-sig wallets and custodial services for institutional clients and exchanges.BitGo is reportedly exploring an IPO in the second half of 2025. Institutional adoption of crypto is here now and there's growing demand for regulated crypto and digital asset storage solutions.
2. Gemini (USA 2013)
Founded by the Winklevoss twins, Gemini is a regulated cryptocurrency exchange and custodian with robust compliance and security. Bloomberg also reports Gemini is considering an IPO this year, looking to expand its offerings to global markets.
3. Bullish Global (USA 2013)
Peter Thiel backed Bullish Global, a crypto trading platform focused on offering deep liquidity and algorithmic trading services for institutional investors. Like other crypto exchanges, they are currently evaluating an IPO, looking to scale amidst growing interest and institutional adoption of regulated digital asset trading.
4. Circle (USA 2013)
Circle is the issuer of USDC, one of the most widely used stablecoins in the crypto industry. The company has filed for an IPO with the U.S. Securities and Exchange Commission and plans to move its headquarters to New York ahead of the listing. A date has not yet been announced.
5. Kraken (USA 2013)
Kraken is a major cryptocurrency exchange known for its wide range of trading pairs and regulatory compliance. They've long hinted at an IPO and could move forward with plans in 2025, depending on market conditions and how things line up.
6. Klarna (Sweden 2005)
Klarna is a leading "buy now, pay later" (BNPL) fintech that is a game-changer in the retail payments sector. The Swedish firm is targeting a U.S. IPO in 2025, at an expected valuation of $15-20 billion.
7. Chime (USA 2013)
Chime is a digital banking platform offering fee-free banking and early paycheck access. The company is reportedly working with Morgan Stanley on a 2025 IPO, aiming for a $25 billion valuation.
8. Revolut (UK 2015)
Revolut is a UK-based digital banking app that offers a range of financial services such as currency exchange, stock and cryptocurrency trading. Rumours have it Revolut is preparing for an IPO in 2025, and its one to watch.
9. eToro (Israel 2007)
eToro, a social trading and investment platform, allowing users to trade different financial assets, including stocks and cryptocurrencies. The Israel-based company filed confidentially for an IPO in January 2025, seeking a valuation of around $5 billion.
10. Stripe (USA 2013)
Stripe is a leading global payments processing company that has been a highly anticipated IPO candidate for several years. They've made some strategic moves including hiring a seasoned CFO who issued tender offers for employees to sell shares, indicating preparations for an IPO.
Risks and Investor Considerations
Not every company announcing an IPO will go through with it. Some may delay or cancel if market conditions change or they secure better private funding. Overvaluation is key risk. Some IPOs launch at inflated prices that don’t match a company’s actual financial strength, which can lead to potential losses if stock prices drop after the initial excitement of the IPO fades.
There’s also concern about a market bubble. If too many companies go public at high valuations, investor speculation could outpace business fundamentals, triggering a downturn.
See: M&A Opportunity as Fintech Valuations Drop
In fintech and crypto, regulatory changes are another factor. While the Trump administration is quite pro-crypto they are still developing a digital asset regulatory framework. Many other governments are still developing rules for both crypto and modernized payments, so in the case of tighter/stricter regulations, it may impact company operations and thus stock performance.
Outlook
Due diligence is key for investors. Understanding each company’s financials, growth potential, and competitive outlook, while avoiding hype and speculation, helps avoid costly mistakes. While 2025 looks to present several pent-up large IPO opportunities, smart investing means balancing excitement with caution.
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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Memecoins, Regulation, and the SEC’s Changing Strategy
Crypto Regulation | Feb 12, 2025
Image: Commissioner Hester Peirce interview (Bloomberg Crypto)
SEC’s New Crypto Task Force and What It Means for Memecoins and Digital Assets
Bloomberg Crypto interviewed Commissioner Hester Peirce, the head of the U.S. Securities and Exchange Commission's (SEC) new Crypto 2.0 Task Force to discuss the SECs approach towards regulation, memecoins and digital assets. Below we summarize the key takeaways for your review - watch the full video for more.
SEC is Shifting Away from Regulation by Enforcement
The focus is now on making crypto rules clearer and avoiding the heavy enforcement actions of the past. Peirce says that the new leadership at the SEC wants to set policies first and then enforce them, rather than using lawsuits as a way to define the rules.
“We have been using enforcement cases to set regulatory policy. We're trying to shift that. So we actually set policy and then we bring enforcement cases as needed.”
See: Trump Picks SEC Chair, Shakes Up Crypto and Oversight
One of the first goals of the task force is to determine which digital tokens fall under SEC regulation. The SEC is figuring out which assets it can regulate, which might belong under the Commodity Futures Trading Commission (CFTC), and which are outside any current laws. This new approach is meant to provide clarity for businesses and investors.
Memecoins Likely Outside SEC’s Jurisdiction
Peirce admitted that many memecoins may not fall under the SEC’s jurisdiction. She said that each token would be reviewed individually but generally most memecoins do not meet the legal definition of securities. This includes the recently launched $TRUMP memecoin that shot up to $27 billion in market value or the former first lady's $MELANIA memecoin, too (NB: now whether or not political figures should be involved or memecoins or not is another thing). This means the SEC may not have authority over them unless new laws are passed. This means that memecoins could remain largely unregulated unless lawmakers step in.
“Facts and circumstances matter. We always have to look at the facts and circumstances, but many of the meme coins that are out there probably do not have a home in the SEC under our current set of regulations.”
This is a big pivot from the previous SEC leadership who often argued that most crypto tokens were unregistered securities and took significant legal actions against major exchanges and token traders like Coinbase, Uniswap, or Robinhood to name a few.
See: Regulatory Clarity for Crypto: Sacks Unveils U.S. Strategy
So what's the impact? Many believe that it's a good thing, arguing that memecoins are more like collectible items rather than investments. David Sacks, the White House's chosen crypto czar, said “Memecoins belong in a category of digital collectibles, not securities,” suggesting that they may not need (heavy) regulation. On the flipside, if memecoins remain largely unregulated, there will be more memecoin scams/rugpulls, increased volatility (wild price swings) and no safeguards for investors against manipulation.
Congress and the Future of Crypto Regulation
As the SEC adjusts its stance on crypto, Congress is also working on new laws that could define how digital tokens are classified. Lawmakers are debating whether certain tokens should be treated as securities, commodities, or something else entirely. Peirce has emphasized that the SEC’s job is to identify gaps in existing regulations but ultimately, it'll be up to Congress to decide how these assets should be regulated.
“And then it's up to Congress to fill that in. And of course, Congress is working in parallel. They're working on legislative efforts to provide more clarity.”
See: SEC Launches Crypto 2.0 Task Force Led by ‘Crypto Mom’
This suggests that any major changes to crypto regulation will likely come from lawmakers, not the SEC.
Key Takeaways
- The SEC is changing from relying on lawsuits to regulate crypto and is now focusing on creating clear rules first.
- Since many memecoins do not fit the SEC’s definition of securities, they might not be regulated unless Congress introduces new laws.
- People investing in memecoins could experience extreme price swings, scams, and little to no legal protection.
- Lawmakers are drafting new regulations to determine whether different cryptocurrencies should be treated as securities or commodities, which will shape the future of the industry.
Outlook
The SEC is focusing on policy clarity before enforcement, largely making it easier for businesses and investors to operate in crypto markets without the fear of sudden legal actions. Memecoins remain in a gray area but likely outside the jurisdiction of the SEC. Without clear regulations, they could thrive as speculative assets or face scrutiny if lawmakers introduce new rules.
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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CFTC to Launch Digital Asset Pilot Under Acting Chair Pham
Regulation | Feb 10, 2025
Image: Pixabay/WorldSpectrum
CFTC Advances Digital Asset Pilot Program With Industry Giants
The U.S. Commodity Futures Trading Commission (CFTC) is launching a pilot program to test how digital assets like stablecoins can be used as collateral in financial markets. The initiative is being led by Acting Chair Caroline Pham and will explore how blockchain technology can improve market operations while maintaining oversight. To support the initiative, the CFTC is hosting a Crypto CEO Forum to launch the digital asset markets pilot including executives from industry giants such as Circle, Coinbase, Crypto.com, MoonPay, and Ripple. By working directly with industry experts to test how digital assets function in practice, the pilot aims to determine of blockchain financial products can indeed make transactions faster, reduce risks, and improve overall market stability.
Caroline Pham’s Leadership and Regulatory Shift
On January 21, 2025, Caroline Pham was appointed Acting Chair of the CFTC, replacing former Chairman Rostin Behnam. Her appointment reflects a more structured and collaborative approach to digital asset regulation. Pham has already made some moves since taking office. Notably, she's reoriented the Enforcement Division to focus on fraud prevention and investor protection instead of broad enforcement actions against digital assets. She's also appointed Harry Jung as Acting Chief of Staff, overseeing CFTC engagement with crypto, decentralized finance, and tokenization initiatives. And of course, she's progressed the digital asset pilot program (the focus of this article), which was stalled under the previous leadership.
Recent GMAC Guidance
The November 21, 2024 the Global Markets Advisory Committee (GMAC) issued guidance outlining that tokenized non-cash collateral, such as government securities and corporate debt, can be used under existing CFTC rules without requiring regulatory changes. It highlighted that distributed ledger technology was simply a new way to record and transfer assets, and firms can rely on their existing risk management policies to integrate it. The guidance recommended allowing market participants to tokenize and use eligible collateral while ensuring compliance with current legal and operational frameworks. See the slide presentation and video.
CFTC’s Digital Asset Pilot
The pilot program is setup to evaluate whether tokenized assets can function as collateral in regulated financial markets. Traditionally, firms rely on cash, government bonds, or highly liquid securities for margin requirements. The CFTC is focused on practical implementation rather than sweeping regulatory changes, so it's important that the program does not require new regulations, as existing legal frameworks allow firms to assess risks and manage tokenized collateral. Key aspects of the pilot include:
See: Responsible AI in Finance: CFTC’s New Framework
- Test tokenized versions of government securities, corporate debt, and money market funds as collateral
- Evaluate risk management standards for digital assets used in financial markets
- Assess compliance frameworks for integrating blockchain-based assets into regulated transactions
Note that in 2023, Caroline Pham introduced the concept of a digital asset pilot to explore applications in a regulatory sandbox but it was more theoretical and regulatory acceptance was uncertain. This new tokenization pilot is now more structured and being implemented under Pham's leadership and is advancing in collaboration between regulators and industry.
How This Could Impact Canada’s Fintech and Digital Asset Market
The CFTC’s approach may influence regulatory developments in Canada, where steady progress has been made in digital asset regulations particularly through the Office of the Superintendent of Financial Institutions (OSFI).
- In April 2023, OSFI launched a stablecoin consultations (fiat referenced crypto assets) to assess risks to inform future policy.
- In July 2023, OFSI proposed draft guidelines for capital and liquidity rules for banks and insurers holding crypto-assets. Final guidelines are expected in early 2025 which will look to align Canada with global standards.
- In November 2023, OFSI consulted on Public Disclosure Rules that would require financial institutions to disclose their crypto-asset exposures. New disclosure rules for banks are set to take effect in early 2026, which align with international best practices.
Additional digital assets are currently being researched and tested through sandbox programs run by provincial regulators and the Bank of Canada. Canadian fintech companies should be on the watch to see if the U.S. establishes stablecoins as valid collateral. If so, similar policies could be explored here in Canada.
See: Tech Leaders Launch Build Canada for Innovation Policy Reform
The tokenization of real world assets and financial instruments would open up new efficiencies for cross border financial transactions. Canada's financial regulators such as the CSA, IIROC, and the Bank of Canada might benefit from the CFTC's strategy and pilot program learnings and inform future policy of digital assets in Canada.
Outlook
The CFTC is in the process of finalizing the operational details of the pilot and are hosting the CEO Forum to determine how the program will be implemented and identify key risks. The data collected from market participants will be used to evaluate potential regulatory frameworks for digital assets in the U.S. and worldwide. This is a big shift in digital asset regulation. That is moving from an enforcement first approach to structured implementation testing and collaboration. If the pilot is successful, tokenized financial instruments could become a standard feature of global markets, a path that Canada would potentially follow.
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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Interop Labs Gifts $1.4M to Fuel AI & Blockchain at UW
Funding | Feb 7, 2025
Image: Sergey Gorbunov
University of Waterloo Receives $1 Million USD Donation to Boost AI and Blockchain Research
On February 6, 2025, the University of Waterloo announced that they received a generous $1 million USD ($1.4 million CAD) donation from Interop Labs, the team behind a leading Web3 company, Axelar, to boost artificial intelligence and blockchain research. The funding will expand Waterloo’s Computer Research Endowment and launch a new research lab called GENESIS Lab at the David R. Cheriton School of Computer Science. The lab will explore how AI and blockchain can work together and support 12 Ph.D. students and 6 undergraduates through a student led non-profit called Waterloo Blockchain.
University President Vivek Goel says the funding will help attract top research talent and push innovation forward. Raouf Boutaba, director of the Cheriton School of Computer Science, believes the partnership will increase Waterloo’s global influence in decentralized technology. This donation helps Waterloo stay ahead in emerging technologies and build on its history of producing top talent including the likes of Ethereum Co-founder Vitalik Buterin and Liam Horne (former CEO of Optimism Labs).
See: Free AI Courses from Canadian Universities
Sergey Gorbunov, CEO of Interop Labs, co-founder of Axelar protocol and associate professor at Waterloo:
"I believe we're at the beginnings of what will be known as a complete rewrite of modern computer systems. Superior capabilities powered by AI, coupled with global distribution and payments rails offered by blockchain systems, demand new attention to how systems are built and used. Waterloo is uniquely positioned to address these challenges, given its amazing talent, open innovation principles and track record."
Axelar’s Role in Web3 Innovation
Axelar (AXL token currently trading at $0.41) focuses on cross-chain interoperability which allows different blockchains to communicate with each other. The platform has facilitated over $10 billion in transfers and processed 2.5 million+ transactions across 69+ blockchains.
See: University of Waterloo Pioneers Endowment-Backed VC Funding in Canada
They partnered with Mastercard, Circle, and J.P. Morgan to explore blockchain financial systems and recently launched Mobius Development Stack, a tool for building apps that work across multiple blockchains.
Why This Matters
By investing in AI and blockchain research, Interop Labs is paying forward the opportunities that helped shape their own success. In turn, the University of Waterloo will equip students and researchers with the tools to push boundaries, solve real world problems, and help create the future of decentralized systems, financial technology, and AI solutions around the world.
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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Strategy’s Rebrand, STRK Launch, and Bitcoin Tax Risks
Bitcoin | Feb 7, 2025
MicroStrategy rebrand as Strategy logo
Three MicroStrategy Happenings
MicroStrategy (NASDAQ: MSTR) one of the biggest corporate holders of Bitcoin, has officially rebranded as Strategy, reflecting a deeper commitment to Bitcoin and artificial intelligence. Along with the rebrand, the company also launched a new financial product STRK now trading on Nasdaq offering an 8% dividend paying convertible preferred stock. Lastly, (Micro)Strategy who holds over 19,000 bitcoin could now face a huge tax bill on unrealized bitcoin gains due to a recent accounting rule change.
1. MicroStrategy Becomes Strategy
On February 5, 2025, MicroStrategy announced an official rebrand and name change to Strategy (see logo with Bitcoin icon above, orange background) to better represent the company’s evolution beyond software and into a Bitcoin-focused financial strategy. The rebrand also includes a new corporate identity and website for it's AI powered business intelligence Strategy software and a separate URL to acquire Strategy's merchandise. The About Strategy link proudly states on the page, "We are the world's first and largest Bitcoin Treasury Company, and the largest independent, publicly traded business intelligence company."
See: National Bank Doubling Down on MicroStrategy’s Bitcoin Boom
Michael Saylor, Founder and Executive Chairman, Strategy:
“Strategy is one of the most powerful and positive words in the human language. It also represents a simplification of our company name to its most important, strategic core. Antoine de Saint-Exupery said, ‘Perfection is achieved, not when there is nothing more to add, but when there is nothing left to take away.’ After 35 years, our new brand perfectly represents our pursuit of perfection.”
2. Strategy Launches STRK: A New Way to Raise Funds for Bitcoin
To fuel its Bitcoin strategy, Strategy launched STRK, an 8% dividend paying convertible preferred stock now trading on Nasdaq. The company raised $563 million from this offering which will likely be used to purchase more Bitcoin.
STRK is designed for investors who want to benefit from Bitcoin’s growth but prefer a steady income instead of dealing with Bitcoin’s price volatility. The stock pays an 8% annual dividend and can later be converted into regular Strategy (MSTR) shares, allowing investors to profit if the stock price goes up.
See: Regulatory Clarity for Crypto: Sacks Unveils U.S. Strategy
There are risk however. If too many STRK holders choose to convert their shares into regular stock, it could reduce the value of existing MSTR shares. Having said that, this product still shows that Strategy is using creative financial tools to increase its Bitcoin holdings without selling common stock.
3. New FASB Accounting Rules
A major Financial Accounting Standards Board (FASB) rule change now requires companies to report Bitcoin and other crypto holdings at fair market value each reporting period. This replaces the old rule which only required companies to record losses (impairments) but did not allow them to record gains unless the crypto was sold. So this means that companies must update the value of their Bitcoin holdings regularly based on market prices by showing gains and losses as the price of Bitcoin fluctuates.
For some companies holding Bitcoin like Tesla, thanks to the new accounting rules, Tesla reported a $600 million profit from its Bitcoin holdings in Q4 2024.
See: May 14-16: Join NCFA at Consensus Toronto 2025!
However in Strategy's case, since they hold over 190,000 Bitcoin, are now facing a huge tax bills due to unrealized Bitcoin gains. Following the Corporate Alternative Minimum Tax (CAMT) introduced by the Inflation Reduction Act, large corporations must pay a 15% tax on book profits including unrealized crypto gains.
So while the rule change benefits transparency, it also creates an unexpected tax burden for firms holding large amounts of Bitcoin.
Closing Outlook
Strategy’s aggressive Bitcoin strategy is attracting strong institutional interest with major investors backing its stock and STRK offering and company. According to Coindesk, the world's largest asset manager, BlackRock, just increased its ownership stake in Strategy to 5% up from its previous 4.09% as of September 30, 2024. Worth noting National Bank Doubling Down on MicroStrategy’s Bitcoin Boom.
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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Canadian Hacker Indicted in $65M DeFi Heist
Enforcement | Feb 6, 2025
Image: Freepik AI
U.S. Authorities Unseal Indictment Against Canadian in $65M Crypto Fraud
The U.S. federal Office of the Public Affairs announced on February 3, 2025 that a Canadian citizen, Andean Medjedovic, has been formally indicted for allegedly exploiting vulnerabilities in decentralized finance platforms KyberSwap and Indexed Finance, stealing approx. $65 million from investors.
Medjedovic was originally a math prodigy from the city of Waterloo, Ontario who graduated from high school at 14 and achieved a math degree from prestigious University of Waterloo by 17. He later became a cybersecurity expert and participated in hacking competitions including Code4rena where he won prizes.
The Scheme
The indictment says that between 2021 and 2023, Medjedovic exploited smart contract vulnerabilities in KyberSwap and Indexed Finance. He borrowed large amounts of digital tokens and then manipulated the automated trading systems into allowing unauthorized withdrawals at artificially low prices, leaving investors with worthless assets.
See: The Day the Platform Went Dark. A Cyber Resilience Story
Authories claim that Medjedovic laundered the stolen funds using various techniques like crypto swap transactions, cross-chain bridge transfers, and crypto mixers all to obscure the sources of funds. Then in November 2023, he attempted to extort control of the KyberSwap platform by offering to return only 50% of the stolen funds in exchange for full control.
Medjedovic faces wire fraud, unauthorized damage to a protected computer, attempted extortion, money laundering, and money laundering conspiracy. If convicted he could face up to 20 years in prison for the charges with up to an additional 10 years for hacking related crimes.
Where is Medjedovic?
According to a Cointelegraph article, authorities believe he is on the run. In 2021, he failed to appear in a Canadian court regarding the Indexed Finance hack, and reports suggest that he has travelled across Europe and South America and was last known to be living on an undisclosed island.
For more details you can read the full indictment here.
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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