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
Ex-FTX Exec Avoids Prison as Bankruptcy Plan Repays Customers
FTX | Oct 31, 2024
Image: Freepik
Ex-FTX Exec Nishad Singh Dodges Jail After Aiding Prosecutors in Fraud Case While Bankruptcy Plan Sets Full Repayment for Customers
United States District Judge Lewis Kaplan decided not to send the former FTX Director of Engineering, Nishad Singh to prison for his remorse and assistance in cooperating with prosecutors in convicting his former boss, FTX founder Sam Bankman-Fried (SBF), of a multi billion dollar theft of client cash in the now bankrupt crypto exchange. Singh's testimony about fund misuse and political donations highlighted his part in the case.
See: Ex-FTX Exec Ryan Salame Starts 7.5-Year Jail Sentence
Note that another former exec at FTX and co-founder, Gary Wang, is set to be sentenced on November 20, 2024. Similar to Nishad Singh, Wang cooperated with prosecutors in SBF's trial by sharing important details about FTX’s financial wrongdoings.
Court Approves Repayment Plan
On the financial front, the court also approved a repayment plan that could allow FTX to distribute up to $16.5 billion collected from asset sales. This represents about 98% of former customers who were owed less than $50,000 and they could see full repayment of their claims, which will be paid out in cash (not crypto) to the disappointment of some people given that uptick in market gains recently.
See: Caroline Ellison Sentenced 2 Years for Role in FTX Fraud
Even FTX shareholders might recover some of their equity investment with an expected payout of $230 million. Payments are set to begin later this year once logistics are finalized.
Why It Matters
FTX case will no doubt make for a remarkable 'case study' on how insider cooperation with the courts, and a very well executed asset recovery can lead to accountability and acceptable outcomes for adversely affected customers. It may even motivate whistleblowers.
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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Andressen’s Shoutout Boosts AI Powered VC Fund to $100M
AI VC Fund | Oct 31, 2024
Image of DAOs.fun website
Andreessen’s Shoutout Pushes AI-run VC Fund "ai16z" to Nearly $100M
An AI run venture fund "ai16z" sparked a wave of excitement in the tech and crypto worlds following a shoutout from Marc Andreessen. The fund’s market cap surged to nearly $100 million before stabilizing at approx $25 million at the time of writing. Daos.fun blends AI with community input (read: DAO) where users can setup their own funds and invest alongside algorithmic guidance.
- Daos.fun lets people set up their own crypto VC funds offering a leaderboard and community. ai16z was launched by an AI and is meant to mirror Marc Andreesen's investment moves. The fund stands out because it's basically run by artificial intelligence. Andreesen, one of the world's best known investors , noticed ai16z and give it a shoutout on social media driving the market cap up to $100 million.
See: Retail Investors to Drive Growth in Private Assets Under Management Expected to Reach $18.3 Trillion by 2027
- So how does it work? Well the fund’s AI takes suggestions from DAO members who come together to form a type of 'trust market' where top advisors/investors with a track record of providing successful tips gain more influence and weight in decision making.
- Daos.fun is a platform where users fund projects by buying tokens that they can redeem if the fund's market value rises. The platform is currently in beta but has garnished a lot of attention as it combines elements from popular meme coin sites like Pump.fun and combines it with a funding model.
Conclusion
While Daos.fund seems like a type of blockchain- based, tokenized crowdfunding model, the ai16z fund highlights how AI and decentralized finance approaches can mash together to transform project based liquidity and fund management. More AI funds will no doubt emerge and their impact on traditional venture capital and crypto investing may grow. Of course, investors should research legalities of participating in such models and accept that these investments are very high risk.
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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SEC Insights on Balanced Regulation and Non-Bank Finance
Regulation | Speech | Oct 30, 2024
Image: Freepik/rawpixel.com
Uyeda’s Insights on a Global Framework for Balanced and Adaptable Finance for Growth
At the 2024 AIMA APAC Annual Forum, one of largest gatherings of regulators, hedge fund managers, and alternative finance and institutional investors in the Indo-Pacific region, SEC Commissioner Mark Uyeda delivered a talk around key issues including regulations for private funds, advancements in digital assets, and the importance of international cooperation among financial regulators.
See: Innovative Approaches to Smarter Regulation
Uyeda's perspective offers valuable insights for global markets especially for those aiming to strike the balance between innovation and regulatory supervision. Below are five quotes from Uyeda's speech, each reflecting on his approach to supporting a global framework for balanced financial future.
1. Supporting Growth with Balanced Private Fund Regulation
“Private fund regulation should be precise, safeguarding investors without becoming an impediment to growth.”
Commissioner Uyeda raised concerns that overly prescriptive rules could limit innovation within funds by focusing disproportionately on compliance rather than allowing room for a diverse range of approaches to investing. Such strict rules might discourage large investors from participating in alternative asset classes and strategies and they would miss out on higher yielding returns that perhaps better align with their investment goals.
See: Balancing Fintech Innovation and Regulation
He believes that rules should be designed to allow private fund managers the freedom to innovate while still ensuring transparency and accountability to investors. The key takeaway here is that regulation should support growth without unnecessary restrictions.
2. A Nuanced Approach to Digital Asset Regulation
“The approach to digital assets should avoid blanket prohibitions; instead, it should consider each asset’s unique characteristics and risks.”
Uyeda's comment highlights that digital assets need a customized approach in regulating them. Specifically, rules should be adapted to the unique features and risks associated with varying digital assets rather than a one-size fits all approach. This is true in markets around the world including the U.S. and suggests the way forward is (again) balanced growth with responsible oversight ultimately crafting flexible guidelines that support innovation while addressing specific traits of crypto and other new technologies.
3. Embracing Non-Bank Finance to Catalyze Innovation
“Non-bank financial entities are critical to a diversified economy, providing essential liquidity without the rigidity of traditional banks.”
Uyeda argues that non-bank finance (sometimes called 'shadow banking') plays an important role in maintaining diverse markets and resilience. Instead of looking at non-bank finance as purely a risk, he highlights its importance in driving economic stability and spurring innovation.
See: Federal Reserve Launches Novel Activities Supervision Program Targeting Digital Assets and Non-Bank Partnerships via Banks
He believes that policymakers should support these types of finance while still keeping markets stable, and that such an approach is especially important for economies that benefit from a range of funding sources to fuel growth.
4. The Importance of Global Regulatory Cooperation for Stability
“Global regulatory collaboration is not just beneficial but essential to maintain financial stability in an interconnected market.”
He believes that global regulators must collaborate and in doing so they can develop a unified way to oversee financial risks that cross borders. This kind of teamwork is especially beneficial for sectors like crypto and alternative finance where consistent and agreeable (global) standards will help drive innovation while also keeping global markets stable.
5. Building Sustainable Growth Through Adaptability and Transparency
“Transparent, adaptive regulation is the foundation of sustainable market growth.”
Uyeda stresses the importance of having clear and flexible regulations especially in fintech and alternative finance where things evolve quickly and regulations need to be adaptable. This mindset and approach helps build a financial environment that remains up to date with new technologies and trends while keeping investor protection a priority.
See: Insights from the UK’s Pro-Innovation Regulation Review
Looking into the future, change is constant. Uyeda’s focus on having adaptable and transparent rules is a way to future-proof financial systems for whatever challenges and opportunities come their way.
A Global Framework for Balanced Finance
Uyeda’s insights show the value of regulatory frameworks that protect investors while allowing room for economic growth and innovation. That means adaptable and well tailored regulation along with a spirit of international collaboration is necessary to keep the economy strong and competitive. Great lessons for any regulators including Canada looking to balance innovation, growth, and investor protection.
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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The Agentic Web Begins. Coinbase Launches ‘Base Agent’
Agentic Web | Oct 28, 2024
Image: Freepik
Meet Base Agent: Coinbase’s Vision with Crypto AI Agents Driving the Economy
Coinbase has launched 'Base Agent', a new tool where AI powered bots (read: programs) manage and execute crypto transactions independently. The tool was developed alongside OpenAI and Replit and catapults Coinbase into the future where digital economies will potentially rely more on smart agents more than humans.
See: How PhD-Level AI Agents Will Change Financial Services
Imagine a situation where AI agents have their own crypto wallets, invoke transactions, and even build apps directly on chain without any human help. This is a paradigm shift called the Agentic Web which rethinks economic roles with AI agents as major contributors while advancing automation.
Introducing Based Agent: create AI agents with full onchain functionality on @base in less than 3 minutes.
The era of Autonomous Onchain Agents is here
Built with @CoinbaseDev SDK, @OpenAI , and @Replit
oh, and you can make it an @X bot too 😉 pic.twitter.com/RgbXp290bV
— lincoln.base.eth (@MurrLincoln) October 26, 2024
Immediate Impacts
1. Automating Small Payments
Base Agent’s main advantage is its ability to automate small and recurring transactions. AI agents can now manage regular expenses like API payments or small service fees on their own. This functionality i s a game changer for developers and small businesses who will no longer need to oversee each process manually.
2. Streamlined Operations in Decentralized Finance
AI agents can simplify workflows by automating transactions and in doing so, reducing human errors. They can autonomously handle smart contracts making financial transactions and the systems that power them more efficient and secure.
Longer Term Economy of Autonomous Agents
A. The Growth of an "Agentic Web"
The release of Base Agent may soon result in an “Agentic Web”, a digital first economy where AI agents can interact, make deals, and trade with each other and with humans. This could open the door to a future where economic activity isn’t led by just humans but pioneered by creating new digital models where AI plays roles as both buyer and seller.
See: Have You Been Interviewed by an AI Avatar Recruiter?
As Agentic markets grow we will start experiencing entire economic models centered around autonomous agents that earn, spend, and invest on their own. Think of AI agents buying digital assets, investing in blockchain projects, or even creating decentralized applications (dApps). This would be a massive shift in a new financial world where decentralized AI and automated financial systems are are prominent.
B. The Elephant in the Room (Regulations)
Having independent agents active in the market raises tricky regulatory questions. Already today, regulators in many jurisdictions dislike automated trading systems for a variety of reasons (see this Automated market makers report by the BoC and OSC), as it brings a host of questions that either have not been asked before or do not have easy answers from a regulatory perspective.
See: AI’s Double-Edged Sword of Retail Investing
How should ownership, accountability, and compliance be handled when non-humans are involved? Should AI agents have a form of legal status? And how will authorities handle taxes or rules for them? The growth of an AI driven economy will likely need new regulations to tackle these and other questions. Expect major push back for anyone in a position of power or authority today.
C. Increasing Need for Security
As AI agents become more independent they’ll engage in increasingly complex interactions, establishing intricate networks with other agents. If that technology isn't science fiction and here today, there's an even more pressing need for increased security, as any vulnerable agent could impact a network of connected systems. Stability and security will be an essential part of digital economies.
Outlook
Coinbase’s Base Agent unveils the future, one where AI bots interact autonomously in digital and financial sectors.
See: Salesforce to Transform Slack Into AI Agent Hub
This is leaps and bounds beyond the case of integrating AI for efficiency but one where an entirely new kind of economy could exist that blends economic systems and incentives, overhauling how humanity thinks about and uses money, trade, and digital operations.
The real question is: Are we prepared for a world where AI isn’t just an assistant but a full participant in the economy?
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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Coinbase Teams Up with CFL as Crypto Scores Big in Canada
Coinbase in Canada Announcement | Oct 25, 2024
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Coinbase Partners with CFL and Grey Cup to Bring Crypto Closer to Canadians
Today, Coinbase announced a Canadian sports partnership with the Canadian Football League (CFL) and the 111th Grey Cup (2024 championships), which will delight many football and sports fans. Coinbase, a major crypto exchange in the United States, recently expanded to Canada and is operating with a restricted dealer license.
Coinbase is also forming business partnerships North of the border including one with Balance, an Alberta-based digital asset custodian for institutional investors, financial institutions, and high net worth individuals. Canadians have seen major crypto firms sponsor sports organizations in the U.S., such as crypto.com arena in Los Angeles (formally the Staples Center) and perhaps now with Coinbase's partnership, other crypto-related firms may be motivated to strike big partnerships with other sports teams in the country.
Goals of the Partnership
The goal of course is to raise awareness and exposure to a new audience, and make digital assets more accessible to a broader Canadian audience (currently there are about 5 million Canadians who use crypto).
- Coinbase is collaborating with the CFL to help more Canadians better understand and use cryptocurrency including for digital payments and other transactions.
- At the Grey Cup fans will enjoy special crypto giveaways, digital collectibles (limited edition NFTs - see NBA topshot), and interactive games. These experiences are all about making it fun to learn about digital currencies.
See: Resurgence of Cryptoassets in Canada’s Investment Landscape
- Coinbase will offer educational resources, workshops, and live demonstrations during the Grey Cup to show how digital currencies work and why they are important.
Why the Partnership Matters
This partnership strengthens Coinbase's commitment to playing a key role in making crypto a bigger part of daily life in Canada, and offers fans a unique opportunity to engage in the world of digital assets while enjoying one of Canada's major sporting events. From sporting events to using digital currency for payments, the outlook for crypto in Canada just got brighter.
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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Stripe Acquires Stablecoin Platform Bridge for $1.1 Billion
Crypto M&A | Oct 24, 2024
Image: Freepik
Stripe’s $1.1B Bridge Deal Signals Big Push for Global Crypto Payments
Fintech payments giant Stripe has acquired stablecoin platform Bridge for a whopping $1.1 billion, one of the largest deals in crypto. This is big news for stablecoins and the future of global payments and how Stripe is bringing digital currencies into mainstream adoption.
According to a16z’s "State of Crypto 2024" report, stablecoins are becoming a major part of the digital economy. In Q2 there were $8.5 trillion in stablecoin transactions which far outpaces payment systems like Visa handling $3.9 trillion during the same period.
See: The Federal Reserve Issues State Member Bank Guidance for ‘Dollar Tokens’ (Dollar-pegged Stablecoins)
This growing usage and Stripe's acquisition is validating the use case of how stablecoins are being used for international payments. Bridge’s technology offers companies an efficient way to make stablecoin transactions, and Stripe's integration will make it easier for companies to make digital payments in stablecoins.
Stablecoins are room-temperature superconductors for financial services. Thanks to stablecoins, businesses around the world will benefit from significant speed, coverage, and cost improvements in the coming years. Stripe is going to build the world’s best stablecoin… https://t.co/6yKi7OKXVT
— Patrick Collison (@patrickc) October 21, 2024
Strategic Acquisition
Bridge was recently valued at only $200 million, so post $1.1 billion acquisition price is five times its recent valuation. This premium confirms the value that Stripe believes Bridge's technology can transform current payment technologies. Stripes purchase of Bridge follows the addition of USDC stablecoin payments in over 70 countries. The acquisition is aligned with Stripe's goal to develop robust stablecoin infrastructure and expand its capabilities in global payments, and to make digital currencies a popular choice for businesses worldwide. Bridge's tech is able to serve both large corporations (ie., SpaceX) and smaller enterprises making it a versatile player in digital payments.
See: Stripe’s Total Payment Volume Passed $1 Trillion in 2023
With this acquisition, Stripe can make global payments cheaper and faster providing a solid alternative to traditional methods like SWIFT. This move pressures other payment companies like PayPal and Visa to expand their own digital currency offerings to keep up with the changes in the market.
About Bridge
Bridge it as a competitor to incumbent cross-border payment networks like SWIFT but with the flexibility and speed of blockchain technology. Bridge provides tools for creating, managing, and using stablecoins across several blockchains and was launched in 2022 by ex-Coinbase execs, Zach Abrams and Sean Yu who wanted to make international payments faster and easier to be recognized as a dependable replacement for outdated incumbent networks like SWIFT.
See: 2024 Global Payments Growth, Trends, and Fintech’s Edge
- Bridge allows businesses to create their own stablecoins or use existing ones like USDC. These digital tokens are tied to fiat currencies to keep their value stable so companies don't have to worry about wild price swings when making a transaction.
- Bridge simplifies cross-border payments by using stablecoins linked to currencies like USD which results in faster and cheaper transactions compared to traditional banking methods (especially in areas where banks may be slower or costly). It helps businesses avoid exchange rate changes and high fees.
- Bridge's platform is designed to work with existing banking and fintech infrastructure, so companies can start using stablecoin payments without expensive or timely setup making it relatively easy to use digital currencies alongside traditional methods.
- Bridge ensures that transactions are compliant with regulations and prevents money laundering. It prioritizes security and transparency making it easier for the platform to work with banks and other regulated financial institutions.
Outlook
By bringing stablecoins into its core payment infrastructure Stripe has a major opportunity to actively shape the future of global payments beyond it's current 1% of global GDP moving through its systems.
See: How Permissioned DeFi Will Transform Global Payments
For the fintech ecosystem and digital currency advocates Stripe’s move signals a new phase of acceptance in the crypto space where stablecoins are viewed as essential parts of the global financial infrastructure and not just a speculative trading tool.
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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Bitcoin Heist, Kidnapping Warning to Crypto Wealthy
Crypto | Oct 24, 2024
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Bitcoin Heist and Kidnapping Reveal Risks of Flaunting Crypto Wealth
As reported by CNBC, a whopping $230 million in Bitcoin was stolen from a wealthy individual in Washington D.C. in August 2024. The theft is being described as the largest individual crypto theft in U.S. history.
Two guys, Malone Lam and Jeandiel Serrano, are charged with stealing over 4,000 Bitcoin (BTC) by pretending to be Google's security team, tricking the victim into giving them access to his digital accounts -- including a crypto wallet. The accused transferred the stolen crypto and laundered funds through various exchanges and mixers.
Spending Binge
Lam and Serrano reportedly went on a spending spree, purchasing a Rolls-Royce, Lambo and multiple high end properties in Miami and LA. It didn't stop there. The spree included a $2 million watch and bar bills as high as $500,000. That's what tipped law enforcement off who soon became aware of these extravagant expenses.
Unexpected Twist
Then in an unexpected twist, a group of 6 men from Florida kidnapped a different couple thinking that their son had a connection to the stolen Bitcoin and would have knowledge or access to the funds. The 6 men were charged in connection with the incident, as law enforcement unravelled the case. Authorities believe there is still about $100,000 million of Bitcoin that is unaccounted for.
See: FINTRAC Guidance on Bitcoin ATMs and Money Laundering
The Authorities are still trying to track down the remaining stolen Bitcoin and uncover all illegal activity linked to the case as the investigation continues. This case clearly highlights the risks involved with flaunting large amounts of crypto and the importance of being discrete and protecting your digital assets.
Cyber criminals are getting more sophisticated all the time at exploiting even the smallest security flaws. It's a potent warning to be cautious and secure your digital assets.
Connection Between Personal and Institutional Risks
Although the heist highlights individual cyber crime risks, authorities are equally worried about a wider range of dangers. On October 16, 2024, The New York State Department of Financial Services (NYDFS) released updated guidelines for financial businesses to follow regarding the management of cybersecurity risks in the age of artificial intelligence (AI). Firms are advised to understand how AI is enabling new dangers, such as social engineering and data theft. It involves implementing strong security protocols and measures, conducting regular audits and analyses, and educating employees on how best to use AI products.
See: Privacy and Crypto Shaken as Telegram’s CEO Arrested
Adrienne Harris, NYDFS Superintendent:
“AI has improved the ability for businesses to enhance threat detection and incident response strategies, while concurrently creating new opportunities for cybercriminals to commit crimes at greater scale and speed.”
Conclusion
The recent bitcoin heist shows how easily cybercriminals can exploit digital systems and the people that run them. At the same time, New York's new guidelines remind us that staying safe online means always being alert and ready to adapt to new threats.
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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