Karsten Wenzlaff, Advisor
August 26th, 2025
News | Jul 24, 2023

Image: Unsplash/Niranjan
"We strongly believe that the SEC's allegations regarding wash trading are entirely unfounded, and based on a fundamental misunderstanding of the facts and a misapplication of the relevant law."
Wash trading has long been a concern in the financial world due to its potential to mislead investors and artificially inflate trading volumes. A recent report revealed that wash trading accounted for over $6 trillion in artificial crypto trading volume in Q1 2020, suggesting that this practice remains a rampant issue in the crypto market.
The report also indicated that more than 70% of trading volume on crypto exchanges was derived from wash trading. If these figures are accurate, it suggests a significant level of market manipulation within the crypto industry, potentially undermining investor trust and market integrity.
The allegations against Binance and the broader issue of wash trading highlight the need for increased regulation and oversight in the cryptocurrency industry. While blockchain technology's transparent nature and the availability of forensic tools make it increasingly difficult for exchanges to engage in illicit activities, regulators are still grappling with the unique challenges posed by the crypto industry.
As the crypto industry continues to evolve, it is crucial for exchanges to uphold high standards of market integrity and for regulators to adapt their oversight strategies to ensure a fair and transparent trading environment.
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, 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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Brookings Advocacy | Jul 19, 2023

Image: Freepik/tohamina, VR technology generative AI
The metaverse is a creature of AI, with much of what happens in it determined by AI algorithms. While the term may have disappeared from public consciousness, it should not disappear from public concern. The company formerly known as Facebook, now Meta Platforms, continues its multimillion-dollar advertising campaign to shape a good image for the metaverse.
The metaverse brings the promise of new tools for education, entertainment, medicine, and commerce. However, it also imports the problems associated with the current digital platforms, while creating a host of new issues. Since we have yet to successfully deal with the problems created by the current digital platforms, it is even more pressing to rectify the new genre of potential abuses that are arising.
The online challenges with which we wrestle today, such as privacy, competition, and misinformation, will be supercharged by the intrusive, immersive, individually identifiable nature of the metaverse. On top of this, the metaverse expands the problems inherent in unsupervised online communities such as harassment, bias, manipulation, and threats to personal safety and the safety of children.
The experience with social media is a warning about what happens when public interest expectations are not part of digital innovation, when “build it and be damned” is the rule. Policymakers need to come to grips with—and preferably get ahead of—the new technology with focus equal to those who are creating the new challenges. Today’s online activity began as an observational experience that gradually expanded through social media and online games to become more participatory. The metaverse accelerates that expansion utilizing virtual reality (VR), augmented reality (AR), and artificial intelligence to create an immersive 3-D first person experience that puts the user “inside” a new pseudo-world.
We are moving from social media to social virtual reality without a plan for mitigating its ills.
Thus far in the internet age, the dominant companies have privatized governance and made their own behavioral rules free of much effective governmental oversight. Too often, public policymakers’ lack of technological understanding has been exploited to promote a fear that regulation will break the magic of the tech innovators. Now is the moment to decide about the kind of digital world in which we want to live.
The metaverse will—like the digital platforms that preceded it—deliver wonderous new capabilities. The development of such capabilities must be encouraged and expedited but not at the cost of trampling the rights of individuals and the public interest. The coming metaverse gives us the opportunity to both rectify the abuses of the early internet era while getting in front of the changes to come.
In conclusion, the metaverse is a world of expanded surveillance by those offering the service. That this new surveillance is being developed by the same companies that have already trampled personal privacy should be of concern. Now, while the metaverse is relatively rudimentary, is the time to get in front of the new issues it raises and, in the process, tackle the platform problems that have long bedeviled us. We are being told, however, to chill, that the time necessary for the development of the metaverse will give us the opportunity to resolve the problems it creates. History, however, teaches us the opposite is true. The establishment of digital norms is a matter of getting there first.
Once new digital patterns are established, they are difficult to correct.
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, 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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News | July 13, 2023

Image: Unsplash/Linus Nylund
This decision could potentially reshape the regulatory landscape for cryptocurrencies in the U.S. Ripple Labs has been arguing that XRP is a medium of exchange, not a security, and this ruling appears to support their stance. The case, which alleges that Ripple conducted a $1.3 billion unregistered securities offering, is being closely watched by the crypto industry as it could set a precedent for future regulatory actions.
SEC v. Ripple in brief:
Ripple putting XRP on exchanges for trading (and funding their operation with those sales) is NOT an investment contract, and therefore not a security.
Ripple paying people in XRP is NOT an investment contract and therefore not a security.
XRP is NOT a… https://t.co/FzlPbkKH21
— Bill Hughes : wchughes.eth 🦊 (@BillHughesDC) July 13, 2023
Gary Gensler sends STRONG message to $XRP hodlers 👇 pic.twitter.com/CbnbzdsE7p
— Altcoin Daily (@AltcoinDailyio) July 17, 2023
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, 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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Report | July 13, 2023

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, 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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Coindesk | Jesse Hamilton | Jul 12, 2023

Instead, the bill suggests that the Commodity Futures Trading Commission (CFTC) should oversee crypto exchanges, and stablecoin issuers should be regulated depository institutions. The bill also outlines a clear distinction between securities oversight and other forms of oversight, a move that has been long-awaited by the crypto industry. The proposed legislation also includes provisions for customer asset segregation, new risk-management standards for crypto lending, and regulations for decentralized finance (DeFi).
Georgia Quinn, general counsel of Anchorage Digital (sole digital asset bank with an OCC charter)
While the Lummis-Gillibrand proposal is a major step forward from the Senate, we will also be watching the House for any movement on stablecoin and market structure bills.
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, 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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Fortune Crypto | Jeff John Roberts | Jul 6, 2023

Image: Binance CZ, youtube
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, 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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CSA Release | Jul 6, 2023

Image: CSA
Stan Magidson, CSA Chair and CEO of the Alberta Securities Commission, emphasized the importance of understanding the regulatory obligations for public crypto asset funds, particularly in light of recent events in the crypto market.
The CSA's Staff Notice 81-336, which provides this guidance, is accessible on the websites of CSA members. The CSA, a council comprising securities regulators from Canada's provinces and territories, plays a pivotal role in coordinating and harmonizing regulation for the Canadian capital markets.
For more information or inquiries, investors are advised to contact their local securities regulator. The CSA's guidance is applicable across all provinces and territories of Canada, including Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Québec, Saskatchewan, and Yukon.
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, 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


