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
Coinbase Secures Bermuda License and Plans to launch Derivatives Exchange
Fortune | Jeff John Roberts | Apr 19, 2023
Image: Wikipedia, Brian Armstrong, CEO, Coinsquare
Coinbase's disclosure that it's received a license to operate in Bermuda comes at a time when the U.S. crypto industry is exploring offshore alternatives.
- The news follows a report by Bloomberg in March that Coinbase Global has been contacting institutional customers about a new offshore trading platform, and working with market makers and investment firms to launch such a service apart from its primary Coinbase marketplace.
- The news of the Bermuda license comes a day after Coinbase CEO Brian Armstrong warned that crypto firms may seek to relocate offshore in the absence of a clear regulatory framework in the U.S.
- Coinbase plans to launch an offshore derivatives exchange in the country as early as next week, according to an anonymous source. The exchange will reportedly offer perpetual swaps and other exotic crypto derivatives that are mostly unavailable in the US due to regulatory restrictions.
- The move will allow Coinbase to diversify its revenue base and challenge Binance's dominance in the global crypto trade. Coinbase also plans to expand its operations in Abu Dhabi as part of its "Go Broad & Go Deep" strategy.
See: Coinbase and Kraken Reaffirm Plans to Stay Operational in Canada Amidst Changing Regulatory Landscape
- Should we stay or should we go now: The crypto industry is increasingly considering locations such as Hong Kong, Dubai, and Singapore as primary business locations. This news came after Coinbase CEO Brian Armstrong warned that crypto firms may seek to relocate offshore in the absence of a clear regulatory framework in the US. However, it is unlikely that Coinbase has immediate plans to leave the US given its history of compliance in its home country.
Continue to the full article --> 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, 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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BoE Speech: 4 Areas at the Intersection of Payment Innovation, Tokenization, and Money
Bank of England | Sir Jon Cunliffee speech | April 17, 2023
In his speech at Innovate Finance Global Summit (London), Jon Cunliffe looks at four areas where the tokenisation of money is now being explored.
- Sir Jon Cunliffe, Deputy Governor, Financial Stability, predicts that the trend towards electronic money will continue due to the digitalisation of everyday life, further developments in payment systems, infrastructure and regulatory frameworks, and newer technologies that have emerged from the crypto world, such as tokenisation, encryption, distribution, atomic settlement and smart contracts. These technologies offer the prospect of the 'tokenisation' of financial and other assets, including money, and a more extensive, faster and more secure programming/automation of transactions.
- The potential tokenisation of money and development of new ways of transferring it in transactions has major implications for the Bank of England, which is responsible for ensuring that payment systems work seamlessly and without disruption in the UK and for ensuring that each of the monies circulating in the UK are both robust and uniform.
See: AltFi Series (2 of 3): Regulatory Landscape on Stablecoins
- 1. While stablecoins offer some advantages, such as faster and cheaper transactions, they also pose significant risks such as lack of transparency, AML compliance, and the potential to undermine financial stability.
- The regulatory frameworks need to be put in place to address these risks, and that stablecoins should be subject to the same standards and regulations as other forms of payment.
- Note that tokenized bank deposits may offer similar functionality and efficiency to stablecoins, while being subject to existing regulatory frameworks and protections for depositors.
- 2. The tokenization of bank deposits as a new form of digital money to be used on new payment rails.
- Tokenized bank deposits would offer some or all the functionality and efficiency claimed for stablecoins, allowing bank deposits to compete better with non-bank payment coins.
- The tokenization of bank deposits would allow them to circulate freely as ‘tokenized deposit money,' constituting claims on the issuing bank that could be held in a wallet without the holder having an account at the issuing bank.
- However, the tokenization of bank deposits raises questions about how deposit insurance would operate in case of a bank's failure and how anti-money laundering and other regulations would operate to prevent illicit finance.
See: UK Proposes Regulations That Would Recognize Stablecoins As A Form Of Payment
- 3. Digital pound: Central banks may issue central bank digital currencies (CBDCs) for retail or wholesale purposes to anchor the value and robustness of all monies circulating in the country and ensure competition and innovation in the development of new functionalities using tokenized money.
- The Bank of England has published a consultation paper on the Digital Pound, a Sterling digital currency for general-purpose retail use, and is exploring options for tokenized wholesale money.
- Tokenization of financial assets, atomic settlement, smart contracts, and other emerging technologies have the potential to transform wholesale financial transactions and enable a more extensive, faster, and more secure programming/automation of transactions.
- 4. Bank of England is actively working to ensure that new forms of money are robust and uniform:
- BoE is developing a regulatory framework for stablecoins, ensuring that they meet the same standards as other forms of money in terms of safety, stability, and consumer protection.
- BoE is collaborating with other central banks and international organizations to develop common standards and shared principles, ensuring a consistent approach across jurisdictions.
- The Bank is engaging with the private sector and fostering innovation in digital currencies, while ensuring that risks are effectively managed, and the financial system remains stable and resilient.
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, 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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OpEd: Draft U.S. Bill on Stablecoins Highlight Differences with CBDCs
Coindesk | George Kaloudis | Apr 17, 2023
A draft of a stablecoin bill that had been circulating among U.S. lawmakers since last fall was published over the weekend.
- At its center are stablecoins and central bank digital currencies (CBDC), which have conveniently been set up as a hot button issue for the upcoming election cycle. The stablecoin part of the bill is largely concerned with Endogenously Collateralized Stablecoins and Qualified Payment Stablecoin Issuers
- If the bill becomes law “endogenously collateralized” stablecoins (aka algorithmic stables or ones backed by digital assets issued by the stablecoin issuer itself) would be unlawful to issue, create or originate for two years.
- This seems like a good rule for U.S. lawmakers to pursue in the name of protecting Americans. Algorithmic stablecoins do not work, period.
- And they probably never will because they depend on a flywheel effect that works perfectly fine when things are going according to plan, but are quite literally designed to spiral to zero once hit by some exogenous shock.
See: Whispers of Ancient Wisdom: Crypto and CBDCs
- Part of the draft bill layout a framework for Qualified Payment Stablecoin Issuers in the United States allows banks, depository institutions, and nonbank institutions to issue stablecoins, but could pose problems for future stablecoin issuers who do not look like traditional banks.
- The bill also calls for a study on a Federal Reserve Digital Dollar and a briefing on CBDCs.
- The conversation around CBDCs in Washington, D.C., will be critical to maintaining personal privacy and preventing draconian monetary policy.
- A surveillable, programmable, and centrally controlled CBDC would not benefit most Americans and should not be adopted by the government as a genuine path forward into the digital future.
Continue to the full article --> 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, 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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Gemini Commits to Canada and Files Pre-Registration Undertaking with the OSC
Gemini | Cynthia Del Pozo Garcia | Apr 12, 2023
Today, we are glad to show our continued commitment to Ontario and the broader Canadian market. By providing a pre-registration undertaking to the Ontario Securities Commission (OSC), we are taking a key step in our application to register as a restricted dealer with the OSC.
- Canada has also been at the forefront of the global crypto fund management space, with publicly traded crypto ETFs being approved and in market since 2021. Gemini is proud to serve as sub-custodian to many Canadian crypto ETFs through our dedicated Fund Solutions business.
See: Gemini and The Winklevoss Twins Are Facing a Big Mess
- Since its inception eight years ago, Gemini has worked with regulatory stakeholders and lawmakers to help shape thoughtful regulation that fosters both consumer protection and innovation. We will continue to do this work. We have spent considerable time applying for and becoming licensed, registered, and otherwise regulated in various jurisdictions across the world. Gemini holds many licenses globally, including:
- New York trust license, state money transmitter licenses (or the statutory equivalent),
- E-Money License from the Financial Conduct Authority in the UK,
- E-Money License from the Central Bank of Ireland.
- You can learn more about our international licenses on our Trust Center.
Continue to the full article --> 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, 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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OSFI Launches Stablecoin Consultation on International Recommendations
OSFI | Release | Apr 17, 2023
Image: Unsplash/CoinWire Japan
Today, the Office of the Superintendent of Financial Institutions (OSFI) launched initial consultations on international recommendations related to fiat-referenced crypto-asset arrangements and activities.
- The article discusses a consultation by the Office of the Superintendent of Financial Institutions (OSFI) in Canada, which aims to provide clarification on digital assets, specifically focusing on fiat-referenced crypto-assets (stablecoins).
- These stablecoins have gained popularity in the growing crypto-assets market, but also present risks to the Canadian financial system.
- The information collected in this consultation will support further consultations related to exposure to crypto-assets and is aligned with domestic and international regulators' efforts to address risks tied to these assets. This work complements ongoing work by the Department of Finance on the digitalization of money as part of the financial sector legislative review.
See: Stablecorp Relaunches QCAD: the Canadian Dollar-Based Stablecoin
- In the fall of 2022, the Financial Stability Board issued 10 draft recommendations for the regulation, supervision, and oversight of stablecoins. OSFI now seeks input from Federally Regulated Financial Institutions (FRFIs) on the application of these recommendations to the Canadian financial system.
- While the 9-week consultation is aimed at FRFIs, others interested in fiat-referenced crypto-asset arrangements are welcome to participate. This feedback will help inform OSFI’s potential development of risk management expectations for FRFIs that engage in activities in this sector.
- To participate, please contact diih-caein@osfi-bsif.gc.ca. The consultation period will close on Friday, June 16, 2023.
- An information session will be held on May 15, 2023 from 1 p.m. to 2 p.m. ET to answer questions participants might have about this consultation on fiat-referenced crypto-asset arrangements and activities. Register at: Information session by May 12 at noon.
View the original release --> 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, 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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Kaiko CEO Predicts Hong Kong as the Next Crypto Hub Due to US Crackdown
Cointelegraph | Brian Quarmby | Apr 2, 2023
Image: Unsplash/Ruslan Bardash
The United States government’s frosty approach to cryptocurrency regulation could ultimately see the industry’s “center of gravity” shift to Hong Kong, says Ambre Soubiran, the CEO of Paris-based institutional crypto market data provider Kaiko.
- The U.S. has been at the forefront of the crypto sector for quite some time. However, with the U.S. government seemingly adopting a regulation-by-enforcement approach, there is a growing feeling by some that a significant amount of companies, developers and investors will soon flock elsewhere to work in friendlier environments.
- The U.S. government has become increasingly aggressive toward crypto since the collapse of FTX in November 2022, with Senator Elizabeth Warren even recently stating that they are building an “anti-crypto army.”
- In January, the Hong Kong government initially outlined plans to become a crypto hub by rolling out progressive regulation to support high-quality crypto and fintech firms in 2023.
- While the regulation is yet to be fully ironed out, Hong Kong’s Securities and Futures Commission (SFC) proposed a crypto licensing regime on Feb. 20, which aims to provide consumer protections without stifling innovation.
- So far, more than 80 virtual asset-related firms have expressed interest in setting up shop there, according to a March 20 speech from Hong Kong’s Secretary for Financial Services and the Treasury, Christian Hu.
See: Consultation Paper for Comment: Hong Kong SFC Sets the Stage for Retail Access to Crypto Platforms
Coinbase Twitter:
1 million tech jobs are at risk of going overseas. As the U.S. goes down a path of regulatory uncertainty, the EU, UK, UAE, Hong Kong, Singapore, Australia, and Japan are all creating environments for crypto to flourish so that they can capitalize on the next wave of innovation.
Ambre Soubiran, CEO, Kaiko:
We want to be where our clients are
Continue to the full article --> 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, 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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Coinbase and Kraken Reaffirm Plans to Stay Operational in Canada Amidst Changing Regulatory Landscape
CryptoSlate | Mike Dalton | Mar 30, 2023
Image: Unsplash/Hermes Rivera
Crypto exchanges Coinbase and Kraken have stated that they plan to continue operating in Canada
- Coinbase said in a March 30 blog post that Coinbase Canada has signed an enhanced pre-registration undertaking with Canadian securities regulators. The company added that its Canadian presence is part of its international expansion efforts.
- They created a “tech hub” in Canada with more than 200 engineers and said that its global team will visit Canada on a regular basis.
- They hired Lucas Matheson, a former Senior Director of Operations at Shopify, to direct Coinbase’s Canadian operations from Ottawa.
- Coinbase is currently locked in a dispute with U.S. Securities regulators, which have sent the firm a Wells notice in advance of possible legal action.
See: Canadian Securities Regulators Publish Enhanced Investor Protection Expectations of Crypto Trading Platforms
- Kraken also said it has filed a pre-registration undertaking with Canada’s Ontario Securities Commission (OSC) and aims to become a registered Restricted Dealer in the country.
- COO David Ripley called Canada a region that is “critical to [Kraken’s] mission.” The company emphasized its local presence by stating that it has served Canadian users for over ten years and has more than 250 employees in the country.
- They will make “certain changes” to the services that it offers in Canada in order to remain in line with the new rules. Under the new rules, exchanges must segregate crypto assets held by Canadian users and refrain from offering certain services.
- However Blockchain.com has stated on its website that it will suspend Canadian custodial and exchange services. OKX has also told users that it will discontinue Canadian services.
Continue to the full article --> 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, 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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