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 Regulations
UK’s Regulatory Crypto Roadmap from Sandbox to Mainstream
Crypto Regulation | Dec 2, 2024
Image: Freepik/bedneyimages
UK to Launch Comprehensive Regulatory Framework for Crypto Assets by 2026
The United Kingdom (UK) is preparing to launch a comprehensive framework for cryptoassets and has released a roadmap that sees final rules published in early 2026. The UK has been at the forefront of fintech regulations for years with initiatives like the Digital Securities Sandbox, and now they have plans for stablecoin regulation and more. The UK is setting the standard for responsible yet progressive governance in the digital asset sector. Let's see what's being planned and what it means for industry participants.
A Look at the Roadmap (view PDF)
Here’s the phased timeline that should allow sufficient time for stakeholders to adapt and prepare.
See: Rachel Reeves: UK’s Financial Innovation Blueprint
- Late 2024: The FCA will release papers covering issues like market abuse, trading platform rules, and disclosure requirements.
- Q1/Q2 2025: Consultations start on draft legislation for key areas such as stablecoin regulation, custody services, staking, and prudential requirements.
- Q3 2025: The FCA will review input and finalize standards for consumer protection, operational resilience, and governance.
- Q4 2025: Final consultations will focus on platforms, intermediation, and lending.
- Early 2026: Final rules published and the application process opens for firms seeking authorization.
- Q3/Q4 2026: The new regulatory framework goes live.
More Than Just Rules
In addition to the digital asset regulatory framework which is paramount, the UK is launching a couple of key blockchain initiatives to support innovation and modernize its financial infrastructure. Both initiatives were mentioned in the Keynote at the Tokenisation Summit by Tulip Siddiq MP on Nov 21, 2024 and aim to build trust, attract investment, and enable the crypto sector to grow responsibly.
1. Digital Securities Sandbox (DSS)
The sandbox is a controlled environment for companies to test blockchain-based securities solutions (i.e., security tokens). This will allow businesses to experiment with new platforms for creating, trading, and settling securities under the supervision of regulators. By allowing experimental yet real transactions in a monitored space the digital securities sandbox aims to bridge innovation with regulatory oversight. Learn more
2. Digital Gilt Instrument (DIGIT)
DIGIT is an innovative UK government project to issue government bonds (known as 'gilts') using blockchain technology. It will be a pilot program that will actually run in the Digital Securities Sandbox mentioned above with the goal of making the process of issuing and managing government debt more efficient, transparent, and secure. DIGIT is part of the UK's modernization efforts and is expected to launch alongside of the upcoming crypto regulatory framework in 2026 while also encouraging innovation in digital assets.
See: Overcoming Barriers to Growth in Financial Regulation
Tulip Siddiq MP, Economic Secretary to the Treasury:
“If we are to maintain the UK’s position as a leading financial services hub, we need to lean into the emerging and disruptive technologies that could change our industry dramatically in the coming years.”
Implications and Outlook
The UK’s roadmap will impact the entire crypto ecosystem from businesses looking for regulatory clarity to consumers who the rules were meant to protect while making digital asset transactions more transparent, safer, and with more confidence. Innovators will benefit from both the digital securities sandbox initiative and tokenisation projects like DIGIT.
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The bottom line is finally moving out of the fringe shadows and moving towards becoming a key part of the global financial system. The UKs commitment to developing its crypto framework in a balanced and responsible way may just well be the tipping point of no return.
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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Meme Coin Chaos and Wild West of Viral Tokens
Crypto | Nov 26, 2024
Image: Jut a chill guy, Phillips Banks
Meme Coins, Lawsuits, and the Intersection of Tech, Culture & Finance?
Imagine logging onto social media and seeing your favourite viral meme like a cute pet or a celebrity's name turned into a cryptocurrency. At first it might feel like a quirky corner of internet culture but beneath the surface of the world of meme coins is arguably a ticking ticking time bomb with a growing number of legal disputes, ethical dramas, and financial volatility. Welcome to the latest iteration of the wild west of crypto.
What Are Meme Coins, Anyway?
Meme coins are cryptocurrencies that draw their identity from internet jokes or cultural references. Perhaps the most famous meme coin is 'Dogecoin'. What started off as a joke ended up making headlines with soaring market caps and high profile endorsements like Elon Musk. Meme coins thrive on social media hype but their value is driven by speculation rather than solid fundamentals. While that may be part of the fun, it's also where things go wobbly.
When Meme Coins Turn Into Legal Battles and Creators Fight Back
For example, an explosive meme coin called PNUT inspired by Peanut the squirrel (500,000 social media followers) who lived at Mark Longo's animal sanctuary in New York with Fred the raccoon. On Oct 30, state officials raided Longo's home and euthanized both animals due to laws against keeping wildlife as pets. The tragic death went viral and captured global attention during the U.S. presidential election with Elon Musk saying it was 'messed up' and DJ Vance citing 'government overreach'. Well Peanut's owner Mark Longo became furious when he found out that the crypto community had minted a coin based on his pet’s story. He called it exploitation and he fired back by launching his own token, "Justice for Pnut and Fred" and threatened a lawsuit.
See: Lena Dunham’s SBF Film & Finance Pop Culture
In another example, Caitlyn Jenner, an American TV personality and retired Olympic gold medalist launched her own JENNER meme coin and promoted it but it landed her in legal trouble. Investors claimed her endorsement led to massive losses and that the coin was an unregistered security. Sad outcome considering what looked like a quick way to cash in on her celebrity status eventually turned into a courtroom drama.
And then there is the artist behind the viral 'Chill Guy' meme, Phillip Banks, was pissed that his work was used in multiple meme coin projects without his permission. As a result, he's pursuing legal action to reclaim control over his intellectual property which is a good reminder that behind the hype and humour, creators and artists are getting taken advantage of and bearing the brunt of exploitation.
Phillip Banks:
“Chill guy has been copyrighted. Like, legally. I'll be issuing takedowns on for-profit-related things over the next few days.”
Why the Legal Storm?
See: Report Insights: DIY Investors in Canada on the Rise
While meme coins are all the rage because of their ability to capture cultural excitement, their value relies on viral buzz rather than actual utility or tech advancements. So meme coins are like a moth to a flame and their massive rise in popularity has created a perfect storm of legal challenges:
- Meme coins often use viral content without asking permission from the creators. This is intellectual property theft.
- Some meme coins are just 'scams and hype tricks' to get people to buy in, only for their value to crash later or a live rug pull, leaving investors with big losses.
- Authorities like the SEC are cracking down on meme coins that act like unregistered investments.
Closing Thoughts
Meme coin tokens are changing the way we think about value, culture, and technology but they shine a light on the cracks and darker corners of crypto where there's an obvious need for better safeguards, clearer regulations, ethics and accountability, and more informed investing.
See: U.S. Bets Big On Crypto and What It Means for Canada
They are a magnet for both innovation and controversy. Some meme coins will mature into legitimate assets but most will be the digital Wild West of crypto. Stay safe and be aware.
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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Gary Gensler Resigns as SEC Chair, Leaving January 20
Regulation | Nov 22, 2024
Image: Freepik
SEC Chair Gary Gensler to Step Down January 20, What It Means for Markets and Crypto
On Nov 21, 2024, the U.S. Securities and Exchange Commission (SEC) announced that Gary Gensler SEC Chair will officially step down on January 20, 2025, aligning with President-elect Donald Trump's inauguration.
During his tenure as SEC Chair, Gary Gensler oversaw the aftermath of the GameStop trading frenzy, lawsuits against crypto and fintech giants like Binance, Coinbase, Uniswap, and Robinhood, enforced regulations during the SPAC boom, addressed controversies over meme stocks and market volatility from social media fuelled trading, implemented reforms in response to the Archegos Capital collapse, managed the regulatory response to the FTX bankruptcy, and negotiated the first full inspections of China-related audit firms by the Public Company Accounting Oversight Board (PCAOB).
On January 20, 2025 I will be stepping down as @SECGov Chair.
A thread 🧵⬇️
— Gary Gensler (@GaryGensler) November 21, 2024
According to the SEC's release, Gensler's key achievements:
- Updated rules to central clearing including changes to how trades are processed and cleared.
- Tightened governance rules for insider trading, improved transparency in executive pay, and made it easier for shareholders to vote on board members.
- Introduced new transparency requirements for companies to share more information about cybersecurity threats, climate risks, and data breaches.
- Took strong action against major crypto firms including cases of fraud and failing to register properly.
See: Gary Gensler, Chairman of the SEC Speech
What It Means for Crypto
Gensler's resignation could lead to major changes in how crypto and digital assets are regulated in the U.S. With Gensler's departure and Trump's pro-business/crypto approach, many industry experts are expecting crypto rules to become more transparent and relaxed. While Bitcoin has been on a torrid upward trajectory since the start of the year, news of Gensler's exit has pushed Bitcoin to the doorstop of $100,000 USD, it's most psychological barrier to date. So who will the next SEC Chair be and what will their approach be towards crypto?
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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U.S. Bets Big On Crypto and What It Means for Canada
Crypto Policy | Nov 21, 2024
Image: Freepik/pvproductions
The U.S. is Making Bold Moves in Crypto
President-elect Donald Trump and his administration are gearing up for key leadership changes to drive innovation policy in the world's largest economy. This includes everything from appointing a new crypto-savvy SEC Chair to a new White House 'crypto czar' and the idea of a U.S sovereign wealth fund backed by digital assets. These policy changes will have ripple effects beyond American boarders. Canada needs to rethink its own strategies to remain competitive.
Who Will Lead the SEC?
It's no secret that the current SEC Chair, Gary Gensler, is considering stepping down after a controversial three and a half years in the post. Reports are saying that Gensler will leave before the end of his term, as early as after U.S. thanksgiving. So with that out of the way, the race to a new SEC Chair is heating up and according to prediction market Kalshi, as of today, the top 3 leading candidates and their odds are:
See: Detroit to Accept Crypto for Taxes with PayPal
- Brian Brooks (33%) - Former top U.S. banking regulator and strong supporter of clear crypto rules and blockchain innovation.
- Robert Stebbins (25%) - Experienced lawyer and former SEC legal chief, known for balancing new tech with investor protections.
- Teresa Goody Guillén (16%) - Blockchain attorney and innovation advocate with deep expertise in digital assets and crypto policy.
The winner will redefine how the SEC approaches crypto policy potentially transitioning from what can only be called aggressive enforcement to a more collaborative approach that also benefits industry. This is one to watch however, thinking back to Gensler's appointment, the crypto industry thought he might be a positive influence on crypto given that he taught a crypto course at MIT Sloan's School of Management and understood blockchain and was also considered more progressive than his peers at the time.
A White House “Crypto Czar”?
Also, Trump's team is considering the creation of a White House crypto advisor position. This 'crypto czar' would act as point on federal policies related to digital assets and help bridge gaps between regulators, policymakers, and industry to help centralize decision making and establish a more transparent path for cyypto innovation in the U.S.
Brian Armstrong on Crypto Dividends for Americans
The CEO of Coinbase, Brian Armstrong, suggested that given America's $35 trillion dollar massive debt, the U.S. should diversify revenue sources and create a sovereign wealth fund and that crypto revenue generated would be distributed as dividends directly to every day Americans saying on X, "Every citizen then has skin in the game. Maybe Congress gets a slightly larger stake".
See: Investing in the Future of AI and Blockchain
The idea has sparked a lively debate. Supporters like Cathie Wood of Ark Invest believes that the idea is transformative and could boost economic freedom and support long term growth. Skeptics on the other hand like Economist Peter Morici highlight the challenges saying it could work but it would require a clear source of funding and national consensus on long term objectives.
Implications for Crypto Regulation
These U.S. crypto manoeuvres will only have a positive impact on crypto given how drastic the current situation is with Gensler at the helm who preferred to regulate by enforcement rather than establish a clear framework for crypto.
- A new SEC chair who understands crypto could bring clarity to whether digital assets are considered securities or commodities, which would reduce the confusion that companies and investors have to deal with today (along with the litany of wells notices).
- Appointed leaders that are pro crypto might prioritize policies that support blockchain technology in effort to help the U.S. lead the global tech race.
- There will be way more collaboration with industry, if the SEC moves away from strict enforcement to having more open conversations with businesses to create a fairer and more supportive regulatory environment for crypto.
The Canadian Perspective
With the U.S. making innovative and bold moves in Crypto, the pressure is heating up for Canada to do the same to remain competitive, or risk falling behind. A friendlier crypto market in the U.S. with a clear regulatory framework could attract top Canadian crypto innovators to leave South.
See: Canada and Trump Risk Index What Fintechs Need to Know
Varying rules north and south of the border will create friction for companies looking to operate in both Canada and the U.S. if rules are different. There's an opportunity for Canada to align with the U.S. on fintech policies which would strengthen North American competitiveness as well.
The Takeaway
As the U.S. is guns a blazing in crypto policy with leadership changes and bold initiatives that could significantly transform industry, Canada needs to adapt quickly to remain competitive or risk falling behind as the U.S. tries to establish itself as a global leader in blockchain innovation.
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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18 States Sue SEC for Regulatory Overreach on Crypto
Crypto Regulation | Nov 15, 2024
AI image
18 U.S. States Coalition Sue the SEC for Regulatory Overreach and Stifling Crypto Innovation
As reported by the Defiant, and in a surprising move (given that the new Trump administration is taking the reigns soon), an 18 U.S. state coalition led by Kentucky Attorney General, Russell Coleman, joined forces with the DeFi Education fund and filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) including Chair Gary Gensler and Commissioners for the agency's controversial crypto enforcement practices which they see as federal overreach.
Plaintiffs:
“The SEC has sought to unilaterally wrest regulatory authority away from the states through enforcement actions targeting the digital asset industry."
Key Challenges in the Lawsuit
- Federal Overreach and the Howey Test
The plaintiffs argue that the SEC’s reliance on the Howey Test (1946 framework for defining securities) is outdated and misapplied to modern digital assets. A July 2023 court ruling in the Ripple case reinforced this argument finding that XRP’s secondary market transactions did not qualify as securities. - Lack of Regulatory Clarity
The crypto industry has long criticized the SEC for failing to provide clear guidelines (even one of its own commissioners and defendants in the lawsuit agrees with this). Since 2021 crypto firms have spent over $429 million on litigation who are forced to operate in a legal gray area. - Economic Impact
The lawsuit goes on to say that the SECs actions limited the economic growth of the the digital asset sector, which currently valued at over $3 trillion has been a game changer in financial inclusion and job creation.
Gensler’s Leadership Under Fire
Under Gensler's leadership at the SEC, the agency handed out major enforcement actions against big players like Coinbase, Kraken, Uniswap, and Ripple. However Gensler's regulate by enforcement approach faced pushback with some of its own commissioners including Hester Peirce and Mark Uyeda criticizing the focus on enforcement instead of clear rules. SEC Chair Gary Gensler recently defended his approach and tough stance on crypto, replying that 'significant investor harm has occurred' in crypto.
Regulatory Outlook for Crypto?
The new incoming administration could bring big changes to how crypto is regulated in the U.S. As part of his campaign platform, President-elect Donald Trump, promised to remove Gensler on his first day in office and appoint officials who support crypto.
See: Inside Federal Securities Laws and Crypto’s Tightrope
Conclusion
As lawsuits continue through the court system, the key question is how federal agencies and/or state governments will shape the future of crypto in America. The outcome will impact innovation, investor protection, and the global competitiveness of crypto markets for years to come.
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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FBI Raids Polymarket CEO’s Home After Election Prediction
Crypto | Nov 14, 2024
Image: Shayne Coplan CEO Polymarket (CNBC)
FBI Searches Prediction Market CEO Shayne Coplan's Home as Crypto Influence Grows
CNBC reported that the FBI raided 26 year old Shayne Coplan's New York apartment on Nov 13, CEO of prediction betting site Polymarket, seizing his phone and other devices. The FBI however did not publicly disclose any details or reasoning behind their investigation and no arrests or charges have been laid to date.
See: Markets React to Trump’s Assassination Attempt
Polymarket is the world's largest crypto prediction market where users can gamble on real world events, such as political outcomes or financial trends. The crowd-sourced platform was thrust into mainstream media for accurately predicting Donald Trump's win over Vice President Kamala Harris in the U.S presidential election, which ran opposite to what most of the mainstream polls were predicting at the time, a Harris win.
Polymarket spokesperson's quote suggests that the raid was politically motivated but no evidence has surfaced to confirm these claims.
"obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election."
Not Polymarket's First Time Catching Regulator's Attention
Polymarket launched in 2022, allowing users to bet on future events in a decentralized model attracting many crypto fans. In the same year, the Commodity Futures Trading Commission (CFTC) fined Polymarket $1.4 million for operating without proper registration, which led to Polymarket restricting U.S. users from using its services.
What This Means for Crypto and DeFi Regulation
The FBIs raid is happening just as attitudes towards crypto regulations in the U.S. seem to be evolving with many expecting regulators to ease up on decentralized finance platforms like Polymarket.
See: Trump Family Launches ‘Defiant Ones’ Crypto Platform
However this latest raid means that even in a pro-crypto climate, some activities in DeFi are still under tight scrutiny (at least until Trump's administration takes over early next year).
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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Ontario Court Blocks Binance’s Pricey Arbitration Clause
Crypto Enforcement | Nov 7, 2024
Image: Freepik/rawpixel.com
Ontario Court Rejects Binance’s Costly Arbitration, Allows Class-Action in Ontario
The Ontario Court of Appeal supported a previous court ruling against Binance’s arbitration clause. This means a class-action lawsuit against Binance can proceed in Ontario instead of being forced into costly arbitration in Hong Kong. The decision is a significant outcome for consumer rights in the world of digital finance.
See: FINTRAC Fines Binance $6M CAD for Compliance Failures
Binance, a leading global cryptocurrency exchange, required users to agree to address disputes in Hong Kong through an arbitration process. To use the exchange users had to accept the clause which is estimated to cost about $37,000 CAD excluding travel or legal fees, an amount of money that would likely be far out of reach for most users. In 2022, a group of Canadian Binance users launched a class-action lawsuit arguing that Binance violated Ontario securities law by selling crypto derivatives without following regulatory rules. Binance tried to have the case stopped, referring to its Hong Kong arbitration clause which they argued took precedence.
Court's Ruling and Implications
The Ontario Superior Court of Justice originally blocked Binance’s attempt to enforce arbitration, finding the clause unfair and a violation of public policy. Due to the high cost, the arbitration process effectively prevented users from seeking compensation making the clause unreasonable. The Ontario Court of Appeal agreed, setting a clear stance that arbitration clauses that burden users with excessive costs won’t hold up in Ontario courts.
The ruling highlights the importance of using a fair and accessible dispute resolution mechanism in the crypto sector. Companies operating in Canada must ensure that their arbitration clauses do not create unreasonable barriers for unhappy users seeking to resolve disputes.
See: OSC Pursues Binance Investigation, Unfazed by Crypto Exchange’s Departure from Canada
The decision also shows the court's willingness to overrule arbitration agreements that are designed to go around consumer protection laws.
Conclusion
Canadian courts are unlikely to enforce arbitration agreements if they impose high costs that make it hard for users to seek justice. Crypto companies operating in Canada must ensure their dispute policies follow Canadian laws and protect consumer rights. This ruling could influence future cases about arbitration clauses in the crypto industry.
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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