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
CFA Stops Rebuildingsociety’s Binance Crypto Promotions
Regulation | Oct 11, 2023
Image: Unsplash/Markus Winkler
The Financial Conduct Authority (FCA) has halted rebuildingsociety.com, a peer-to-peer platform, from approving financial promotions for Binance and other crypto asset firms.
The FCA has been unyielding in its regulatory stance, particularly towards cryptocurrency promotions. A recent statement from the FCA reveals that 146 alerts were issued about cryptoasset promotions on the first day of the new regime alone. The regulatory body expects various businesses, including social media platforms, app stores, and search engines, to heed these alerts and play a pivotal role in shielding UK consumers from illegal promotions.
See: FCA’s Expectations for UK Cryptoasset Businesses and the Travel Rule
The FCA’s New Crypto Marketing Regime
Since October 8, 2023, firms aiming to promote cryptoassets in the UK are mandated to be authorized or registered by the FCA, or have their marketing approved by an authorized firm.
The FCA’s rules necessitate that promotions be clear, fair, and not misleading, and must be accompanied by prominent risk warnings. Furthermore, they should not improperly incentivise individuals to invest. This regulatory shift aligns cryptoassets with other high-risk investments and applies to all firms marketing cryptoassets to UK consumers, irrespective of the firm’s geographical location or the technology utilized for promotion.
Binance and Rebuildingsociety.com Partnership Under Scrutiny
Binance, despite being unregulated in the UK, announced a new domain for UK users and declared that rebuildingsociety.com would be responsible for approving its marketing and communication materials. However, the FCA’s intervention has cast a shadow over these plans.
See: SEC Accuses Binance.US of Not Cooperating With Investigation as Executives Exit
Binance has emphasized its substantial investment in ensuring compliance with the FCA's rules and highlighted that their agreement with Rebuildingsociety.com was shared with the FCA well before the enforcement of the updated Financial Promotions Regime.
Rebuildingsociety.com, on the other hand, has expressed its commitment to exceeding regulatory requirements and safeguarding consumers. Despite its waiver request for additional compliance time being rejected, the platform plans to appeal against the FCA’s restrictions and the waiver request denial.
Navigating Regulatory Waters
The FCA’s robust action and the new financial promotion rules for cryptoasset promotions are in alignment with its core commitments to reduce and prevent serious harm, set and test higher standards, and promote competition and positive change, as laid out in the 2023/24 Business Plan.
See: FCA Uses New Tools to Catch 14X more Mis-leading Ads than Last Year
The ongoing situation serves as a reminder for platforms operating in this sphere, emphasizing the necessity to remain abreast of regulatory developments and to ensure that operations are in strict compliance with the prevailing norms.
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
 |  |  |
|---|---|---|
 |  |  |
SBF Sues Insurer As Trial Commences Amidst Media Frenzy
Crypto | Oct 4, 2023
The high-profile trial of Sam Bankman-Fried (SBF), the founder of FTX, has commenced, drawing significant attention from the media, crypto influencers, and the general public.
Here are some key takeaways from the first day of the trial:
Trial and Witness Selection
- The courthouse was bustling with activity, and the media overflow room was filled with individuals noting every detail of the event.
- SBF faces serious charges, and the trial is expected to span approximately six weeks, although it might conclude sooner.
- The charges and potential witnesses suggest a complex and multifaceted trial that will delve deep into SBF’s business practices and the operations of FTX and Alameda.
- A list of potential witnesses was read out, including notable names like Anthony Scaramucci and several former company executives and family members.
- Institutions like Jane Street Capital, Sequoia Capital, and Binance might be mentioned during the trial, indicating the breadth of entities involved or affected by the case.
See: Sam Bankman-Fried Accused of Witness Tampering Now Awaits Trail Behind Bars – Lessons Learned
Jury Selection
- The public and potential jurors expressed a range of views on crypto, from skepticism to personal grievances due to investment losses.
- The jury selection process was meticulous and detailed, with Judge Lewis B. Kaplan ensuring potential jurors would not be influenced by external media coverage.
- Some potential jurors shared their experiences and losses in crypto investments, while others expressed skepticism and negative feelings towards the crypto industry. The final jury selection is yet to be completed but is expected to conclude soon.
Reaction and Next Steps
- Some observers noted SBF’s calm and composed demeanor, while others, including crypto influencer Tiffany Fong, commented on his altered appearance, suggesting it made him look “more criminal.”
- The trial is set to continue with the finalization of the jury selection, followed by opening statements and witness testimonies, which are all expected to unfold in the coming days and weeks.
- For those interested in every detail, Wired is hosting a LIVE FTX trial feed here
SBF Sues His Insurer to Cover Legal Bills
- Sam Bankman-Fried (SBF), amidst an undergoing a trial, has filed a lawsuit against his insurance provider, CNA, accusing them of not covering his legal costs as per their policy.
See: Ether Futures ETFs Launch. VanEck Commits 10% to Developers
This trial is not only pivotal for SBF but also holds significance for the cryptocurrency industry, as it brings to light regulatory, ethical, and operational issues within the space. The outcome may potentially influence regulatory frameworks and public perception of the crypto industry in 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
| | |
|---|---|---|
| | |
EU Report: Crypto Outside EU & Impacts on the Union
Crypto Regulation | Sep 28, 2023
Image: Unsplash/Charles Forerunner
EU's MiCA framework sets a new standard in crypto regulation, as the UK and US navigate their unique challenges and the global community calls for coordinated oversight.
The European Union, with its groundbreaking MiCA framework has set a precedent. Meanwhile, the UK and the US are carving their unique paths. Drawing insights from a recent EU report, this article provides an update of the regulatory landscape across these jurisdictions, highlighting the challenges, opportunities, and global implications of their respective approaches to crypto-assets and stablecoins.
EU's Regulatory Approach to Crypto-Assets
In 2023, the European Union introduced the innovative Markets in Crypto-assets (MiCA) framework, a comprehensive regulatory measure designed to oversee the burgeoning crypto-asset markets. The primary focus of MiCA is on stablecoins, ensuring that their value remains consistent with official currencies. This framework combines stringent transparency and governance measures with prudential rules similar to those applied to traditional financial institutions. The overarching aim of MiCA is to ensure better protection for citizens, maintain financial stability, and foster both innovation and financial inclusion in the crypto space.
UK and US
The United Kingdom has charted its own path in the crypto realm. With comprehensive crypto legislation in place, the UK is eyeing a status as a global 'crypto hub'. However, while the foundation is set, specific regulations and details have been deferred to national financial authorities.
See: The Federal Reserve Issues State Member Bank Guidance for ‘Dollar Tokens’ (Dollar-pegged Stablecoins)
The United States grapples with its own set of challenges. Crypto-assets in the US face a degree of legal ambiguity. They are primarily regulated as securities, leading to a cloud of uncertainty. This approach has sparked debates, with many advocating for more stringent and protective regulations.
Stablecoin Regulation by Country
| Jurisdiction | State of Regulation | |
|---|---|---|
| United States | Final legislation pending
Draft bills introduced in Congress; no committee progress. |
|
| United Kingdom | Final legislation pending Adopted in June 2023. |
|
| Australia | Process initiated/plans communicated | |
| Bahamas | Stablecoin regulation in place | |
| Canada | Final legislation pending | |
| Cayman Islands | Stablecoin regulation in place | |
| European Union | Stablecoin regulation in place MiCA adopted; to enter into force in 2024. |
|
| China (mainland) | Prohibition/ban | |
| Gibraltar | Stablecoin regulation in place | |
| Hong Kong | Final legislation pending | |
| Japan | Stablecoin regulation in place | |
| Mauritius | Stablecoin regulation in place | |
| Qatar | Prohibition/ban | |
| Saudi Arabia | Prohibition/ban | |
| Singapore | Final legislation pending | |
| South Africa | Final legislation pending | |
| Switzerland | Stablecoin regulation in place | |
| United Arab Emirates | Final legislation pending |
Source: Bank for International Settlements, "Crypto, tokens and DeFi: navigating the regulatory landscape, May 2023."
Global Perspectives and the Road Ahead
Academics and global entities have raised the alarm about the potential of stablecoins to destabilize financial systems. In practical terms, these instability effects can manifest in various ways:
Individuals
- If stablecoins (pegged to traditional currencies or assets), fail to maintain their peg, individual investors could see a rapid devaluation of their holdings.
- In cases where stablecoin platforms face regulatory scrutiny or technical issues, might experience delays or restrictions in accessing their funds.
- Without transparent reporting, individuals might make investment decisions based on misleading information about the reserves backing a stablecoin.
See: Canadian Federal Regulators Issue Joint Statement on Crypto Assets | OSFI Publishes Digital Asset Roadmap
Organizations
- Businesses that rely on stablecoins for operations, such as payment processing or remittances, might face disruptions if the stablecoin they use becomes volatile.
- Companies associated with stablecoins that fail to maintain their peg or face regulatory issues might suffer reputational harm.
- Organizations might face higher costs to ensure they meet varying regulatory requirements across different jurisdictions.
Governments
- Widespread adoption of stablecoins might interfere with a country's ability to implement effective monetary policy.
- If a widely-used stablecoin collapses, it could trigger a crisis in the broader financial system, similar to a bank run.
- Governments might lose some control over their financial systems if stablecoins, especially those issued by private entities, become dominant.
The concerns about fragmented global crypto regulations further exacerbate these potential issues. Without a unified approach to regulation, stablecoins could be subject to regulatory arbitrage, where issuers move operations to countries with laxer regulations. This could lead to a race to the bottom, with countries diluting regulations to attract crypto businesses.
See: The Federal Reserve Issues State Member Bank Guidance for ‘Dollar Tokens’ (Dollar-pegged Stablecoins)
However, the silver lining, as noted in the report, is that tighter regulation, such as that implemented by the EU, can have positive effects on the crypto market. It can increase investor confidence, reduce the chances of fraudulent schemes, and ensure that stablecoin issuers maintain adequate reserves.
While the EU's actions are commendable, the global nature of crypto-assets means that international coordination is crucial. Without a harmonized approach, the benefits of individual regions' regulations might be limited, underscoring the need for global cooperation to ensure the stability and integrity of the crypto market.
Download the 11 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
| | |
|---|---|---|
| | |
[Brookings Event, Oct 6, 2023]: Payments in America for a Digital Century
Brookings | Sep 20, 2023
Image: Unsplash/Igal Ness
Event Overview
Date & Time: October 6, 2023, from 9:00 am to 1:00 pm EDT.
Location (In-person or Online): The Brookings Institution, Falk Auditorium, 1775 Massachusetts Ave NW, Washington, D.C. 20036.
Overview: America was once a leader in the adoption of new payment technologies, introducing innovations like credit cards and ATMs. However, in recent times, the country has fallen behind in terms of payment infrastructure. The current system is slow and often imposes costs on users.
See: Payments Canada Delays Launch of Real-Time Rails Again (without a timeline)
With the rise of digitization and technological advancements, there's a significant opportunity to reform the payment system to benefit the economy, promote financial access, and facilitate commerce and trade. However, these innovations also bring regulatory challenges and questions about the role of government and central banks. The event will delve into the current state of U.S. payments and emerging digital asset technologies that could disrupt them. The event is a collaboration between Brookings, Cornell Law, and Vanderbilt Law.
Discussion topics topics include public and private real-time payment systems (FedNow and Real-Time Payments), cryptocurrencies, stablecoins, central bank digital currencies, and more.
See: Could FedNow Outperform Virtually All Existing Cryptocurrency Projects?
Sample Speakers:
Rohit Chopra: Director of the Consumer Financial Protection Bureau.
Christopher J. Waller: Federal Reserve Governor.
Register --> 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
| | |
|---|---|---|
| | |
New York’s DFS Remove Ripple and Dogecoin from Greenlist
Crypto Regulation | Sep 19, 2023
Image: Unsplash/Shubham Dhage
The New York Department of Financial Services (DFS) has revamped its crypto oversight, notably removing Ripple, Dogecoin, and Litecoin from its approved "greenlist."
While DFS continues to lead in digital asset supervision, the crypto world is witnessing varied regulatory approaches globally. From Solana Labs emphasizing robust U.S. regulations to Hong Kong's potential tightening after the JPEX probe, 2023 is shaping up to be a landmark year for crypto governance and regulation.
What recent changes did the New York Department of Financial Services (DFS) announce regarding its virtual currency oversight?
- Yesterday, the New York Department of Financial Services (DFS) revealed an update to its virtual currency oversight regime. This update introduced new criteria for how digital firms licensed by the agency can list different cryptocurrencies.
- As a significant part of this overhaul, DFS removed over two dozen tokens from its “greenlist” of approved tokens. Notably, Ripple, Dogecoin, and Litecoin were among those removed. However, eight tokens, including Bitcoin, Ether, and the new PayPal Dollar, remain on the list.
See: Decoding Judge Rakoff’s Opinion: What It Means for Future Crypto Regulations
How has DFS positioned itself in the crypto regulation landscape?
- DFS has emerged as a nation-leading digital asset supervisor, primarily due to its BitLicense program and virtual currency unit.
- While the crypto industry often criticizes DFS for its rigorous licensing process, the recent guidance showcases DFS's balanced approach to crypto regulation. This is in contrast to other state and federal agencies that lean more towards enforcement actions.
What was the purpose of the DFS greenlist, and how has it changed?
- The DFS greenlist was created as an integral part of its broader crypto supervision. Previously, firms licensed by DFS could gain approval to custody and list tokens through a self-certification system. This system streamlined the process while still granting DFS a supervisory role.
- Once two firms had self-certified a token for either custody or listing, it would be added to the DFS greenlist.
- This meant that any DFS-licensed firm could approve the token for custody or listing, further speeding up the process. However, with the new guidance, the greenlist has been significantly reduced, now featuring only eight tokens.
How does the international crypto regulation landscape look in 2023?
- Internationally, the crypto regulation landscape is evolving rapidly. For instance, Anatoly Yakovenko, co-founder of Solana Labs, has emphasized the importance of comprehensive cryptocurrency regulations in the United States to maintain its leadership in the blockchain and Web3 sectors.
- Also, Hong Kong, a significant player in the crypto world, is considering tightening its crypto regulations. This comes in the wake of an investigation into the crypto exchange JPEX, which led to six arrests and numerous reports of financial losses.
Crypto regulations in the future
As the crypto industry continues to grow and evolve, regulatory bodies worldwide will likely introduce more stringent and detailed guidelines to protect investors and ensure market stability.
See: New U.S. Crypto Accounting Rules Come Into Effect in 2024
The recent actions by DFS and other global entities highlight the importance of a balanced approach to regulation, ensuring innovation while safeguarding investor interests.
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
| | |
|---|---|---|
| | |
SEC Accuses Binance.US of Not Cooperating With Investigation as Executives Exit
Crypto | Sep 15, 2023
Image: Unsplash/Loic Leray
Binance.US grapples with heightened SEC scrutiny and internal upheavals, marking a tumultuous phase for the leading crypto exchange
- The U.S. Securities and Exchange Commission (SEC) has accused Binance.US of not cooperating in an ongoing probe.
- The SEC alleges that the company's staking, clearing, and brokerage services violate federal securities law.
- The regulatory body is particularly concerned about Binance.US's use of Ceffu, a custody service offered by Binance's international arm. This, according to the SEC, violates a previous agreement intended to ensure that only local U.S. staff have access to funds.
Executives Exit and Internal Changes
- Adding to the complexity, key risk executives are leaving or recently exited Binance.US. company:
- Krishna Juvvadi, the head of legal;
- Sidney Majalya, the chief risk officer;
- This comes on the heels of the departure of Binance.US CEO Brian Shroder, who left the company amid layoffs of roughly a third of its workforce.
- Norman Reed, Binance.US's chief legal officer and general counsel, will step in as interim CEO.
- Reed is an alum of the SEC, having spent six years as special counsel in its market regulation division.
- His appointment follows Brian Brooks, who left the role citing differences over strategic direction.
See: SEC’s Sealed Court Filing Raises Eyebrows for Potential Binance Setback
The regulatory challenges facing Binance.US are a microcosm of the broader issues affecting the cryptocurrency industry. As the SEC tightens its grip, the company is undergoing significant internal changes, including executive departures and layoffs.
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
| | |
|---|---|---|
| | |
SEC Charges ‘Stoner Cats’ For Selling $8M of Unregistered Crypto Securities
Enforcement | Sep 15, 2023
Image: Unsplash/Wayne Low
The U.S. Securities and Exchange Commission (SEC) has taken action against the creators of the popular animated web series, Stoner Cats.
What Are Stoner Cats?
Stoner Cats is a popular adult animated web series that has garnered significant attention in both the entertainment and crypto worlds. The concept of "Stoner Cats" involves house cats that gain sentience after being exposed to their owner's medical marijuana. This marijuana is used to alleviate the symptoms of early Alzheimer's disease. The series released six episodes from July 2021 to December 2022, and boasts a cast of well-known actors, including Jane Fonda, Mila Kunis, Ashton Kutcher, Seth MacFarlane, and Chris Rock.
See: LA-Based Entertainment Company, Impact Theory, Faces SEC Charges Over Unregistered NFT Securities Offering
The creators introduced a unique concept where the Non-Fungible Tokens (NFTs) provided holders with exclusive access to watch the series online. These NFTs were marketed as tickets, with the idea being that the more successful the show became, the more valuable the NFTs would be.
Over 10k NFTs Sold in 35 Minutes
On July 27, 2021, SC2 offered and successfully sold over 10,000 NFTs at approximately $800 each, raising a staggering $8 million from investors. This sale was completed in a record 35 minutes. The NFTs were marketed as a ticket to the Stoner Cats web series, with the promise that the success of the show would directly correlate with the success of the NFTs.
Charge and Settlement
The SEC has formally charged Stoner Cats 2 LLC (SC2) for conducting an unregistered offering of crypto asset securities in the guise of NFTs. This move by the SEC was aimed at ensuring that the creators of Stoner Cats adhered to the federal securities laws. Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, emphasized that regardless -of the nature of the offering, it's the economic reality that determines its classification as an investment contract and, consequently, a security. The SEC's primary concern was that Stoner Cats marketed its expertise in crypto projects and led investors to believe they would profit from selling the NFTs in the secondary market.
See: SEC Chair Gensler’s Mixed Feedback at Senate Hearing
Without admitting or denying the SEC’s findings, SC2 has agreed to a cease-and-desist order. They will also pay a civil penalty amounting to $1 million. As part of the settlement, SC2 has committed to destroying all NFTs in its possession and will publish a notice of the order on its official platforms.
The SECs Regulation by Enforcement Continues
This case underscores the SEC's increasing scrutiny of the rapidly evolving NFT space. The regulatory body aims to ensure that firms involved in the production or trading of digital assets adhere to the necessary securities laws. The Stoner Cats case serves as a reminder that while the world of NFTs offers immense potential, it is not exempt from regulatory oversight.
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
| | |
|---|---|---|
| | |
