Karsten Wenzlaff, Advisor
August 26th, 2025
Crypto | May 15, 2025

Image from Crypto.com Canada website
On May 12, 2025, Crypto.com Canada announced that on May 8 they received a restricted dealer registration across all Canadian provinces and territories, allowing the platform to continue offering crypto asset products and services while it works toward full investment dealer registration and CIRO membership.
This regulatory milestone aligns with Crypto.com’s earlier commitment to the Canadian Securities Administrators and Ontario Securities Commission in August 2022, when it became the first crypto trading platform to sign a Pre-registration Undertaking (PRU). The PRU was created to provide a temporary path for firms to continue operations while meeting Canada’s robust regulatory standards.
Eric Anziani, President and Chief Operating Officer at Crypto.com:
“We have strong protocols for our Canadian operations which were put in place or strengthened during the course of the registration process and are designed to enhance the protection of our customers and their asset. We have invested heavily in our compliance infrastructure around the world, and specifically in relation to Canada, because we want our customers to have greater peace of mind knowing that they are dealing with a regulated firm in Canada.”
Crypto.com Custody Trust Company (chartered trust company licensed in New Hampshire) will be the primary digital asset custodian for Canadian clients.
According to Joe Anzures, President of the custody unit, “Crypto.com Custody Trust Company looks forward to providing secure custody services to the Canadian market and to registered cryptocurrency trading platforms who will operate in accordance with the high standards established by Canadian securities regulators.”
Crypto.com’s Canadian registration adds to a growing global portfolio of licenses including:
Crypto.com’s restricted dealer registration highlights regulatory progress and a maturing market in Canada’s crypto sector. As more platforms become licensed and registered to operate in Canada both retail and institutional clients will benefit from more competition and improved confidence and safeguards. It also shows that top global crypto players are willing to meet Canada's high compliance standards, if there is a clear path to registration and market opportunities.
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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Enforcement | May 12, 2025

Image: AI Freepik
On May 9, 2025, U.S. President Trump signed an executive order called 'Fighting overcriminalization in federal regulations' that changes how federal agencies can or cannot pursue criminal enforcement for regulatory violations, redefining risk for fintech and crypo leaders. The policy order says prosecutors must now show clear evidence that a person or company intended to break the law before charging them criminally.
This move targets the issue of overcriminalization and aims to reduce legal risk for businesses that unknowingly violate complex or technical rules. It could reshape how enforcement decisions are made in fintech, crypto, and other innovation-driven sectors.
Here's a link the fact sheet published by the White House. Essentially the order mandates all federal agencies to:
1. A good example may be former Binance CEO, Changpeng Zhao (CZ) who was sentenced to four months in prison in 2023 for violating the Bank Secrecy Act. The case focused on compliance gaps, not fraud. Similar enforcement actions in the future might be handled differently if there was no evidence of intent.
2. These two former Coinbase employees, Ishan and Nikhil Wahi, were convicted of insider trading using confidential listing information. Since their actions were deliberate, the order may not directly apply to them but it might influence how prosecutors approach future cases involving gray areas in trading conduct.
3. Fintech and crypto companies operating in complex and evolving regulatory environments may benefit the most. The new policy could limit criminal risk for teams that unintentionally violate reporting, registration, or compliance rules.
4. Sam Bankman-Fried was convicted in 2023 and sentenced to 25 years in prison. The FTX founder was found guilty of fraud, conspiracy, and misuse of customer funds. Courts found that his actions were intentional and deceptive, so the order likely does not apply in his case.
5. Alex Mashinsky former Celsius CEO pleaded guilty to fraud and market manipulation and recently received a 12 year prison sentence for crypto fraud and knowingly misleading customers. As a result, his case also likely falls outside the scope of the new enforcement policy.
The new policy directive places the burden on agencies to prove intent before pursuing criminal charges. The change may protect founders, operators, and teams from facing prison time over technical mistakes or unclear compliance rules in an ever evolving regulatory environment.
While the order does not affect past convictions, it may influence how courts and prosecutors handle ongoing investigations. It also gives legal teams a new foundation to challenge charges that lack clear evidence of intentional wrongdoing.
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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Enforcement | May 9, 2025

Image: Freepik
Alex Mashinsky, Founder of the crypto lending platform Celsius, has been sentenced to 12 years in prison for defrauding customers and manipulating the price of his company’s digital token.
According to a press release issued May 8, 2025 from the U.S. Department of Justice, Mashinsky promised people their money would be safe and earn high rewards on Celsius. However, courts found that instead he used customer deposits to make risky bets and secretly boost the price CEL, Celsius’s own token. At the company’s peak, Celsius held about $25 billion in customer assets. When Celsius collapsed in July 2022, around 600,000 customers lost access to $4.7 billion worth of crypto. The sentence came from a U.S. court after Mashinsky admitted in December 2024 that he committed fraud and misled investors.
Jay Clatyon, U.S. Attorney said:
“Mashinsky made tens of millions of dollars while his customers lost billions... The rules against fraud still apply.”
As reported by Reuters, Mashinsky also said publicly that he wasn’t selling CEL tokens, but in fact he was and made about $48 million in profit from doing so. Further, he took out $8 million of his own money just before the company blocked customer withdrawals. He told customers that Celsius was financially strong even that he knew it was failing.
In addition to 12 years prison time, Mashinsky must pay a fine and give up his profits from the token sales.
Crypto companies must follow the same rules as everyone else. Misleading customers and manipulating markets has serious consequences. As more and more people engage with digital assets, trust and transparency is critical for 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 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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Consensus Toronto | May 9, 2025

The financial world is changing fast, and Consensus 2025 Toronto is where proactive, leading advisors will be. On May 15, CoinDesk is hosting Wealth Management Day as part of its flagship conference at the Metro Toronto Convention Centre. It's a dedicated one day program specifically for professional wealth managers and financial advisors who want to understand how digital assets, tokenization, AI, and macro forces are changing investment portfolios now and in the future.
Approved advisors will receive a complimentary Platinum Pass, for full 3-day access to Consensus 2025 from May 14–16, including all general programming, high-level networking, and private meetings with industry leaders.
Wealth Management Day offers a full morning of advisor focused content followed by roundtable networking in the afternoon. Topics include:
Speakers come from leading firms like Coinbase, T. Rowe Price, Evolve ETFs, CMCC Global, and Cambrian Asset Management. Government regulators and fintech founders will also join for candid conversations about what's happening today, what's coming next, and what advisors need to prepare for.
Below are just a few of the speakers presenting on Wealth Management Day at Consensus on May 15:
Globally and in Canada too, investors are looking for advisors who can offer informed, compliant, and proactive strategies and advice. Wealth Management Day is where crypto and the investment ecosystem intersect, from startups to global firms, regulators to entrepreneurs.
For advisors, Wealth Management Day is a low risk, high reward way to plug in, and it’s free for those who qualify.
"With ETFs and tokenized funds on the rise, advisors who ignore digital assets risk being left behind, not by the technology but by their clients who want to drive the future. "
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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Crypto Regulation | May 8, 2025

Image: Freepik/jcstudio
The Financial Conduct Authority (FCA) just dropped Discussion Paper 25/1 'Regulating Cryptoasset Activities' (83 page PDF) for industry and stakeholder feedback, following the HM Treasury’s draft rules shared on April 29, 2025 that propose bringing crypto activities under the Financial Services and Markets Act. The FCA is now seeking feedback on how to regulate trading platforms, intermediaries, lending, staking, and decentralized finance. The discussion proposals look to reduce consumer harm, improve market fairness, and align with global standards.
Firms that run crypto trading platforms and serve UK retail customers will need FCA approval. Platforms will not be allowed to trade against their own customers. All trades must be handled through fair and consistent rules. The platform must stay neutral and cannot lend to customers or carry risk between buyers and sellers.
Foreign crypto platforms that want to serve UK customers must have a UK branch and/or a UK-based legal entity. The FCA is not extending the Overseas Persons Exclusion to crypto.
Many retail investors use bots or automated strategies. The FCA wants platforms to take responsibility for monitoring this activity and managing any risks that come with it.
Platforms often rely on market makers to provide liquidity. Some market makers are tied to the platform operator or its affiliates. The FCA wants stronger controls and greater transparency.
Some platforms be able to list tokens that they or their affiliates have issued. This can create conflicts of interest and make it harder to ensure fair trading. The FCA is considering rules that would separate the platform operator from the token issuer.
The FCA says neutral platforms should not act as lenders or clearing houses; they should not extend credit or carry risk between users. However, platforms must still make sure that trades are settled safely and on time.
The FCA proposes clear rules on pre trade and post trade transparency. Platforms may be required to publish order book data and store transaction records for five years. This could include transactions by individual retail users.
The FCA is asking for feedback on discussion paper 25/1 by 13 June 2025. You can respond by using the form on the FCA website or email: dp25-1@fca.org.uk. These ideas and subsequent discussions could influence regulators around the world. Canada’s fintech sector and policymakers should review how the proposed UK rules could affect global competitiveness, partnerships, and innovation pathways.
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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Payments | May 7 2025

Image from Shakepay joins Payments Canada
Canadian fintech just took a significant step forward. On May 5, 2025, Shakepay Inc, a Montreal-based crypto platform and CIRO-regulated securities dealer announced that they are the first crypto-native company to officially join Payments Canada, an independent public-purpose organization that owns and operates Canada's core payment infrastructure under federal oversight including the systems that clear and settle over $120 trillion annually.
This move could open the door for deeper integration of digital assets into Canada's regulated financial system, which in turn could accelerate innovation, competition, and consumer access to key fintech services including crypto and digital assets more broadly.
Shakepay’s blog announcement:
"Not only are we joining an exclusive group of fintechs, but it marks a significant step towards bridging the gap between the crypto industry and traditional finance in Canada."
Shakepay’s access to the national payment infrastructure is about more than speed. It aligns with their vision to make 'bitcoin more accessible to Canadians', and as member they can work directly with banks, fintechs, and other financial institutions under the same rules and protections as traditional players. This includes faster and more reliable fiat payment options to its customers, and access to the Real-Time Rail system when it's expected to rollout in 2026.
This is the same infrastructure that open banking will rely on, so it gives Shakepay critical access, aligning its services with evolving standards for instant payments, data access, and interoperability.
It also gives them a seat at the 'parents table', allowing them to participate in key discussions, collaborate with key industry leaders, and bridge the gap between digital assets and traditional finance, while setting the stage for future participation in Canada's open banking framework.
It does raise several questions though, such as will this move make it easier for other fintechs to gain access to the same payments infrastructure? Will their ability to educate, advocate, and generate significant banking partnerships accelerate regulatory clarity for expanding crypto services in Canada? Will this lead to a direct crypto to fiat payment service via the national payments infrastructure?
While the answers will no doubt take time to emerge, the line between traditional financial institutions and digital asset platforms continues to blur. And this is the first time that a crypto-native firm is running through the heart of Canada's payment system.
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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Crypto Law | May 7, 2025

Image: Freepik
On May 6, 2025, Governor Kelly Ayotte signed New Hampshire House Bill 302 into law, allowing the state treasury to invest up to 5% of surplus public funds in digital assets with a market cap over $500 billion, currently only Bitcoin qualifies.
Kelly Ayotte, Governor of New Hampshire posted on X:
"New Hampshire is once again First in the Nation! Just signed a new law allowing our state to invest in cryptocurrency and precious metals."
The new law catapults New Hampshire to the forefront of state-level crypto adoption in North America, and is a breakthrough in what was becoming a stalling legislative trend. For example, States like Arizona and Florida faced political pushback or abandoned similar efforts.
“...any digital assets with a market capitalization of over $500 billion averaged over the previous calendar year…”
This effectively excludes all altcoins including Ethereum unless they exceed the $500B threshold over a full year period. It's a narrow scope but deliberate to reduce risk and focus on perceived stability.
“Secure custody solution" must include:
These detailed requirements reflect institutional-grade best practices (likely excluding retail options), and may raise the bar for custody providers targeting public entities.
The state may invest in qualifying digital assets by direct holdings or qualified custodians or an exchange-traded product (ETP) registered by the U.S. Securities and Exchange Commission.
This opens the door for investing in ETF style exposure to bitcoin which reduces the complexities of ownership, custody, and compliance.
“Precious metals” means silver, gold, or platinum coins, bullion, or other forms. So, this isn't just a crypto reserve bill but also a hedge against fiat currency risk, and part of New Hampshire’s broader fiscal policy strategy.
This means that will legislative approval, the state could invest in various types of qualifying funds. It could be a General Fund, Revenue Stabilization Fund, or any other fund approved by the legislature, allowing for flexible portfolio construction over time.
At the federal level, President Donald Trump signed an executive order on March 6, 2025, establishing a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile, which would be funded largely by seized Bitcoin in criminal and civil cases and to avoid and prevent taxpayer burden. The order also mandated a full audit of government-held digital assets and restricted any Bitcoin sales from the reserve.
President Trump's involvement in personal cryptocurrency ventures has raised ethical questions of mixing political influence with personal financial gain. In January 2025, Trump launched a memecoin $TRUMP and recently announced a 'pay to play' exclusive dinner for the top 220 holders of his memecoin, which has generated the owner of the memecoin (reportedly a large portion is owned by the Trumps) $320 million in fees, according to the Globe and Mail.
In response to the latest developments, Democrats Senators, Jeff Merkley and Chuck Schumer, introduced the End Crypto Corruption Act on May 6, 2025 by way of a press release, which aims to prevent U.S. federal officials and their immediate families from investing in, endorsing or financially benefiting from cryptocurrencies like memecoins.
The varying approaches to crypto policy across different levels of U.S. government highlight the complexities and fast pace of change being considered, ever since Trump signed the digital assets and bitcoin reserve executive order. For global policymakers including Canada, New Hampshire's model could set a precedent for integrating digital assets into public fund portfolios. Surely, Vancouver's Mayor Ken Sim who has been a major advocate of a potential bitcoin reserve in Canada is following the impacts of this story closely.
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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NCFA Canada
Craig Asano
CEO and Executive Director
casano@ncfacanada.org
ncfacanada.org








