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
Jamie Dimon Advises Government to ‘Close Down Crypto’
Crypto | Dec 8, 2023
Image by Freepik
Jamie Dimon, CEO of JPMorgan Chase, reiterates his critical view of cryptocurrencies, advocating for their ban despite his bank's active involvement in blockchain technology.
Responding to Sen. Elizabeth Warren, D-Mass., Jamie Dimon said:
“I’ve always been deeply opposed to crypto, bitcoin, etc. The only true use case for it is criminals, drug traffickers … money laundering, tax avoidance. If I was the government, I’d close it down,” he added.
- Jamie Dimon expressed his deep opposition to cryptocurrencies, labeling them as tools for criminals, drug traffickers, and for money laundering and tax avoidance. Dimon suggests a call for government action.
- Despite Dimon's criticism, JPMorgan Chase is significantly involved in blockchain, the foundational technology for cryptocurrencies, with initiatives like JPM Coin.
See: Bank-Issued Deposit Tokens Emerge and JP Morgan Sees Them Going DeFi
- Both banking leaders and Senator Elizabeth Warren, typically a critic of big banks, agreed on the need for crypto companies to adhere to the same anti-money-laundering regulations as major financial institutions.
- The discussion also touched on national security, with Warren emphasizing the urgency for Congress to regulate crypto to prevent its misuse by terrorists and rogue nations.
Significance
This development is significant as it showcases a prominent financial leader's staunch opposition to cryptocurrencies, juxtaposed against the backdrop of his own bank's adoption of related technology. This highlights the ongoing tension between traditional banking perspectives and the evolving digital currency sector.
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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Record 2023 US Crypto Lobbying Expenditure
Crypto | Dec 4, 2023
Image by Freepik
US cryptocurrency industry sets a new record in federal lobbying expenditure in 2023
In 2023, the US cryptocurrency industry is on track to surpass its previous record in federal lobbying spending. As reported by Reuters, according to OpenSecrets, a nonprofit research group, crypto companies have already spent $18.96 million in the first three quarters, exceeding the $16.1 million spent during the same period in 2022.
A look back to 2021: Crypto lobbying is going off the charts
This surge in lobbying efforts comes in the wake of reputational damage and the need for favorable legislation, despite the high-profile collapse of FTX, a major spender in this arena last year.
Why It's Important
This record spending in lobbying by the US crypto industry highlights the sector's determination to influence policy and regulatory frameworks amid increasing scrutiny and regulatory challenges. This trend signals crypto's evolving role and the need for clear regulatory guidelines which is crucial for its long-term stability and growth.
Questions and Answers
How much has the cryptocurrency industry spent on lobbying in the first three quarters of 2023?
- The cryptocurrency industry spent $18.96 million on lobbying in the first three quarters of 2023, marking a significant increase from the previous year.
Which companies are leading the lobbying expenditure in the US crypto industry?
- Coinbase, the largest US crypto exchange, is leading the lobbying expenditure, followed by Foris DAX (operating Crypto.com), the Blockchain Association, and Binance Holdings.
See: Unraveling Crypto’s Role in Global Terrorist Financing
What are the main reasons behind the increased lobbying spending by the crypto industry?
- The increased lobbying spending is primarily to repair reputations following scandals like the FTX collapse and to navigate the growing regulatory scrutiny from bodies like the US Securities and Exchange Commission (SEC).
What are the legislative goals of the crypto industry in their lobbying efforts?
- The crypto industry's legislative goals include combating SEC lawsuits, advocating for the approval of a spot bitcoin exchange-traded fund (ETF), and advancing crypto-friendly legislation in the House of Representatives.
Despite the passage of major bills, what is the ongoing advocacy strategy of the crypto industry?
- Despite the passage of major bills in the House committee, the crypto industry continues its advocacy efforts. For instance, Coinbase has launched a grassroots campaign and is planning more meetings with lawmakers to further their objectives.
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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EY 2024 Financial Sector Report: Navigating New Norms
Dec 4, 2023
EY's 2024 Strategic Guidance for Financial Firms Focusing on Compliance, Digital Transformation, and Operational Resilience
EY has published it's annual 2024 Global financial services regulatory outlook report highlighting the challenges and unprecedented opportunities for firms ready to adapt and excel in this dynamic environment.
As we approach 2024, markets are increasingly shaped by complex regulations, digital innovation, and a heightened focus on sustainability and consumer protection.
Report Overview
- Stay abreast of prudential developments, resolution, and recovery processes. Given the dynamic market conditions, it's crucial to be well-prepared for regulatory changes and heightened supervisory focus.
- Take a holistic approach to address a range of critical areas including consumer impact, environmental, social, and governance (ESG) factors, digital assets, the digitalization of finance, artificial intelligence (AI) integration, financial crime, and operational resilience. This comprehensive approach is key to staying competitive and compliant.
See: OSC/EY Report: AI in Fintech Use Cases
- Proactively develop a strategy for ongoing engagement with regulatory bodies, especially regarding new prudential developments. Understanding and anticipating regulatory shifts can position your firm for more effective compliance and strategic planning.
- Strengthen your firm’s capabilities in crisis management, ensuring that capital and liquidity standards are met. This will not only comply with regulatory requirements but also build trust with stakeholders.
- As digital transformation accelerates, establish strong governance frameworks to manage risks associated with digitalization and AI. This will maximize the benefits of these technologies while minimizing potential risks.
- Recognize the growing importance of digital assets and develop strategies that account for varying maturity levels and regulatory landscapes across jurisdictions.
- Integrate ESG factors into your business strategy, governance, and risk management. This includes setting clear targets and supporting sustainability disclosures, which are increasingly important to investors and regulators.
- Adapt to regulatory shifts that emphasize consumer protection in product offerings, pricing, and overall impact. This involves understanding the implications of new products and services and exploring alternative marketing channels.
See: PayPal’s Blockchain Vision As New Financial Rail
- Utilize technology to combat financial crime and fraud. It’s vital to have robust systems for monitoring, detection, and compliance.
- Learn from recent bank failures and other financial crises to strengthen your firm’s risk oversight and resilience governance. Operational resilience should be viewed as a strategic imperative, not just a compliance requirement.
- The economic outlook and regulatory environment are both uncertain and complex. Companies and investors need to stay informed about regulatory changes and adapt their business models accordingly. This involves a firm-wide commitment to setting priorities and tailoring business models to focus on people, processes, data, and technology.
EY's 2024 outlook presents a comprehensive roadmap for financial institutions, emphasizing the need for proactive regulatory engagement, digital agility, and robust operational frameworks.
Download the 28 page PDF report --> 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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BoC Speech: Essence of the New Retail Payment Activities Act
Canadian Payments Regulation | Nov 30, 2023
Image: Freepik/macrovector
New Retail Payments Regulatory Framework
On November 28, 2023, Ron Morrow, the Executive Director – Supervision at the Bank of Canada delivered a speech about the new Retail Payments Activities Act in Canada at the Central 1 Momentum Summit in Vancouver, BC.
See: Canada’s New Retail Payment Regulations: Registration and Compliance
- Passed in the summer of 2021, the new Retail Payment Activities Act in Canada is a major shift in the supervision of retail payments, expanding the oversight of the Bank of Canada to include a broader range of Payment Service Providers (PSPs), many of which were previously not subject to supervision beyond anti-money laundering regulations. The Bank of Canada is focused on managing risks associated with payment activities. The robustness of national payment systems and rigorous supervisory roles of central banks have increased, especially after events like the Herstatt Bank failure in 1974 and the 2008-09 financial crisis.
Registration and Compliance
Under the new regime, PSPs are required to register with the Bank of Canada and comply with minimum standards for managing operational risks and safeguarding end-user funds. This includes separating end-user funds from operating funds and ensuring their protection through trust, insurance, or guarantees.
Scope and Impact
The Act covers approximately 2,500 providers, both in Canada and internationally, including payment processors, digital wallets, and other payment technology companies. The focus is on the functions performed by these entities rather than their business identity.
Global Alignment
In developing this framework, the Bank of Canada aligned its approach with international standards, drawing insights from similar regulatory regimes in the UK, EU, and Singapore. This global perspective ensures that Canada's approach is in harmony with the best practices worldwide.
Enforcement and Flexibility
The Bank will use various tools for enforcement, including warning letters, public notices of violation, and monetary penalties, with a graduated approach depending on the circumstances. The regime acknowledges the diversity of business models among PSPs and aims for a common standard with enough flexibility to apply across all types of providers.
See: BoC Update on The Digital Canadian Dollar Initiative
For the complete details, you can visit the Bank of Canada's website. The information provided here is based on the first part of the speech, and the remaining part of the speech might contain additional details.
Read the full speech ==> 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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Ex-Binance CEO CZ Faces Up to 10 Years in Prison
Crypto | Nov 28, 2023
Image: Unsplash/Kanchanara
Ex-Binance CEO Changpeng Zhao Faces Up to 10 Years in Prison Amid Bank Secrecy Act Violations
Changpeng Zhao, the former CEO of cryptocurrency exchange Binance, is currently facing a potential prison sentence of up to 10 years. This development follows his guilty plea for violating the Bank Secrecy Act. The U.S. Department of Justice (DOJ) has expressed frustration over Zhao's permission to reside in the UAE until his sentencing, considering his billionaire status and the UAE's lack of an extradition treaty with the U.S.
See: SEC Files Lawsuit and Accuses Kraken of Commingling
Key Points
- Zhao has been charged by the DOJ for violating the Bank Secrecy Act, with the prosecution possibly arguing for a maximum 10-year term. This is a significant increase from the initially anticipated 12-18 month sentence.
- Binance has agreed to pay a massive $4.3 billion fine, marking one of the largest enforcement actions against a crypto platform. Zhao himself was personally fined $50 million.
- Attorneys for Zhao, a dual citizen of Canada and the UAE, submitted a motion last Thursday to the Western District of Washington in Seattle. They argued that Zhao is not a flight risk, emphasizing his voluntary appearance in court to enter a guilty plea to the charges.
- Despite his guilty plea, Zhao has been allowed to travel to and live in the UAE until his sentencing. This decision is contentious due to his wealth and the UAE's non-extradition status with the U.S.
See: UK Leading Charge in Global Crypto Tax Crackdown
Importance of the Case
This case is a landmark in terms of legal action against a major figure in crypto, highlighting the increasing scrutiny and regulatory actions in the industry, and importance of compliance with laws like the Bank Secrecy Act. This case could set a precedent for how legal systems worldwide handle similar situations in 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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CZ Pleads Guilty. Fined $4.3 Billion in DOJ Settlement
Crypto | Nov 23, 2023
Image by Racool_studio on Freepik
Changpeng Zhao, Binance CEO steps down following $4.3 billion settlement with U.S. regulatory agencies.
- Changpeng Zhao (CZ), the CEO of Binance, has stepped down and pleaded guilty (federal court in Seattle) to breaking U.S. anti-money laundering laws as part of a $4.3 billion settlement resolving a years-long probe into the world's largest crypto exchange.
- Binance broke U.S. anti-money laundering and sanctions laws and failed to report over 100,000 suspicious transactions, including those linked to terrorist groups and illegal activities.
- The settlement includes a $3.4 billion penalty to the Financial Crimes Enforcement Network (FinCEN) and $968 million to the Office of Foreign Assets Control (OFAC), along with compliance requirements and monitoring for five years.
See: SEC Files Charges Against Binance for Mishandling Funds and Deceiving Regulators
- Reuters reported the settlement includes a $1.81 billion payment within 15 months and a further $2.51 billion forfeiture.
- Zhao will personally pay $50 million as part of the settlement, which is described as one of the largest corporate penalties in U.S. history.
- Per Coindesk and details in a legal document, he is arranging a $15 million deposit in a trust managed by Davis Wright Tremaine, distinct from the bond amount. This is to ensure compliance with the conditions of his release, with an agreement to surrender these funds in case of any violation.
- Additionally, he is securing the backing of two guarantors, who are committing $250,000 and $100,000 each.
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
Binance is no longer a baby. It is…
— CZ 🔶 BNB (@cz_binance) November 21, 2023
"These resolutions acknowledge our company’s responsibility for historical, criminal compliance violations, and allow our company to turn the page" -- Binance statement
What's Next?
- The date for his sentencing has been set for February 23, 2024, at 9 a.m. Pacific Time.
- Zhao will remain the majority shareholder of Binance and will serve as a consultant on historical areas of the business.
- Richard Teng will succeed him as CEO.
See: SEC Files Lawsuit and Accuses Kraken of Commingling
- The case against Zhao and Binance highlights the increasing regulatory scrutiny on cryptocurrency exchanges globally. The settlement is seen as a significant step towards greater compliance and regulatory oversight 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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SEC Files Lawsuit and Accuses Kraken of Commingling
Crypto Enforcement | Nov 21, 2023
Image: Unsplash/Bryan Burgos
The SEC has filed a lawsuit accusing Kraken of operating as an unregistered platform and improperly mixing customer funds with corporate assets.
This move echoes previous actions taken by the SEC against other major exchanges like Coinbase and Binance. Kraken, a prominent crypto exchange, has become the latest target of the U.S. Securities and Exchange Commission (SEC).
SEC Allegations
According to the SEC, Kraken has not only operated as an unregistered broker, clearing agency, and dealer but has also commingled up to $33 billion in customer crypto with its corporate assets. The SEC's lawsuit seeks to permanently ban Kraken from operating as an unregistered exchange and demands a fine along with the return of any ill-gotten gains.
Kraken Stands Firm and Criticizes SEC
Kraken stands firm in its disagreement with the SEC's allegations. The exchange asserts that it does not list securities and plans to vigorously defend its position. Kraken emphasizes the lack of regulatory clarity in the U.S. and criticizes the SEC's approach of "regulation by enforcement," which it believes harms American consumers, stifles innovation, and undermines U.S. competitiveness globally.
See: Kraken’s Strategy for Canadian Market Growth
In its blog post, Kraken outlines its stance, highlighting that the SEC's complaint does not allege fraud, market manipulation, customer losses due to hacking, compromised security, or breaches of fiduciary duty. Kraken argues that the SEC's claim of "commingling" is a misrepresentation, as it merely involves the use of fees already earned by the exchange.
Kraken also points out the legal precedents where courts have rejected the SEC's theory that digital assets traded on platforms are securities transactions. The exchange believes that the current lawsuit will fail for similar reasons. Kraken emphasizes that there is no legal framework for registering as an exchange, broker-dealer, or clearing agency for investment contracts, as demanded by the SEC.
Committed to Accelerating Crypto Adoption
Amidst this legal battle, Kraken remains committed to its mission of accelerating cryptocurrency adoption and ensuring financial freedom and inclusion.
See:
Kraken Agrees to $30 million Settlement with SEC and Stops U.S. Customer Staking Program
Kraken (Payward Inc.) in Advanced Stages of SEC Unregistered Securities Probe
The exchange continues to advocate for practical and effective rules for digital assets and stresses the importance of comprehensive Congressional action to avoid the U.S. falling behind in the global crypto and Web3 advancements.
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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