Wide-ranging actions included disrupting ongoing and illegal activity and enhancing technology and analytics capabilities to tackle evolving threats and emerging trends 
The government acknowledges that the VASP licensing regime will be more rigorous and comprehensive than those in Singapore, the UK and Japan.
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
The FCA Hosted CryptoSprints in May and June 2022: Here are The Outputs
FCA | Jun 29, 2022
We hosted our first policy-focused CryptoSprint events in May and June 2022. The objective of the events was to seek industry views around the current market and the design of an appropriate regulatory regime.
The crypto market is developing at pace. Currently the FCA’s role is focused on registering firms for anti-money laundering purposes, whilst the majority of cryptoassets and associated busineses remain unregulated. What the FCA’s approach has shown is that regulation can support developing ideas. As a result, the FCA held a series of CryptoSprints to consider what regulation of crypto could or should look like in the future. We heard a rich and diverse set of views from the 184 participants.
See: FCA extends deadline for crypto firms to register (with temporary regime closing)
Key Themes
- Principles-based approach would help accommodate the pace of technology and market evolution.
- Technology neutrality was essential to avoid policymakers ‘picking winners’ in developing markets.
- Gaving a clear digital taxonomy (ideally internationally) would help in developing a regime for cryptoassets.
- Existing rules and tools should be used where possible (vs bespoke new standards)
- Proportionate approach to regulating cryptoassets, balancing encouraging innovation with protecting consumers and markets.
- Some participants also suggested that a self-regulatory organisation (SRO) could be used to provide greater clarity for firms, perhaps before formal regulation took effect.
- Participants also suggested that regulators should prioritise key risks when developing any potential standards, and that regulation could be phased over time, with new rules implemented gradually to allow firms and consumers to adjust.
See: UK Proposes Regulations That Would Recognize Stablecoins As A Form Of Payment
Problem Statements
- Issuance and Disclosure
- Regulatory Hooks
- Custody
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 Implements KYC Travel Rule in the Netherlands
Coindesk | Jamie Crawley | Jun 24, 2022
Image: Unsplash, Christine Roy
From June 27, Coinbase customers in that country will have to supply key details about the transaction and the recipient when moving crypto out of the exchange.
Coinbase's Dutch clientele will soon have to meet additional know-your-customer (KYC) requirements when transferring crypto to wallets held outside of the exchange.
Specifically, beginning June 27, Coinbase users in the Netherlands wishing to pull crypto from the exchange will have to share the recipient's full name and residential address as well as the purpose of the transfer. In certain circumstances, customers would be required to link a Coinbase (COIN) wallet to their main Coinbase account to verify that they control the wallet receiving crypto assets.
See: Updated FATF Virtual Asset and VASP Guidance includes DeFi for crypto service providers
Coinbase told customers it is making these changes as "required by local regulations," an apparent reference to the Financial Action Task Force's (FATF) travel rule, which requires crypto service providers to exchange the personal information of the senders and receivers in order to tackle fraud and money laundering.
Currently, however, the travel rule is not mandated in the Netherlands, suggesting that Coinbase is attempting to pre-empt the possibility of this regulatory action.
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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SEC Rejects Bid to Turn the Largest Bitcoin Fund Into an ETF -> Grayscale Sues SEC
CNBC | Ryan Browne | Jun 29, 2022
Grayscale, which manages the world’s largest bitcoin fund, said it would sue the U.S. Securities and Exchange Commission after regulators turned down its bid to convert the investment vehicle into an exchange-traded fund.
The SEC on Wednesday rejected Grayscale’s application for a spot bitcoin exchange-traded fund, citing a failure by the investment manager to answer questions about concerns around market manipulation.
The watchdog is concerned investors would lack sufficient protections under the Grayscale proposal.
Grayscale filed to make its Bitcoin Trust, known as GBTC, an ETF back in October 2021, but the ruling faced multiple delays. Grayscale had piled pressure on the watchdog to side with it, including by giving people a way of quickly emailing in to express their support.
See: First Time Ever, Grayscale’s Top Crypto Investment Product is Ethereum Trust. Institutional Shift?
Soon after the SEC’s rejection, Grayscale filed a petition challenging the decision with the U.S. Court of Appeals for District of Columbia Circuit. The litigation is being led by Grayscale’s senior legal strategist Donald B. Verrilli Jr., a former U.S. solicitor general, and a team of attorneys at law firm Davis Polk & Wardwell, said:
Failing to apply consistent treatment to similar investment vehicles, and is therefore acting arbitrarily and capriciously in violation of the Administrative Procedure Act and Securities Exchange Act of 1934.
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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CSA 2021-2022 Enforcement Report highlights: Regulators’ Actions to Hold Securities Law Violators Accountable
CSA | Release | Jun 29, 2022
Wide-ranging actions included disrupting ongoing and illegal activity and enhancing technology and analytics capabilities to tackle evolving threats and emerging trends
Montreal – The Canadian Securities Administrators (CSA) today released its fiscal year 2021-2022 Enforcement Report, which outlines the specific actions that CSA members undertook in the past year to detect, disrupt and deter wrongdoing and hold securities law violators accountable.
Highlights from the fiscal year 2021-2022 Enforcement Report include:
- 236 Investor Alerts warned the public about potential harmful or illegal activity;
- 61 interim cease-trade and asset-freeze orders issued;
- 59 matters commenced involving 139 respondents;
- 14 crypto-related matters where the CSA took action in pursuit of clarifying and enhancing regulation;
- 44 individuals and 13 companies banned from participating in the capital markets; and,
- 7 individuals received a combined total of 15.4 years of jail terms for criminal and quasi-criminal cases.
See: CSA releases 2022-2025 Business Plan focused on investor protection
Louis Morisset, Chair of the CSA and President and CEO of the Autorité des marchés financiers:
This year’s Enforcement Report highlights how CSA members collaborated with each other and with regulators around the world to take action against securities misconduct, protect investors, and strengthen the integrity of our capital markets. We pursued activities to disrupt ongoing and potential illegal activity and enhance our market analytics capacity to support our investigations and tackle sophisticated and evolving threats. I’d like to thank the hard-working and determined staff from CSA member jurisdictions who work tirelessly to identify wrongdoing and hold securities law violators accountable.
Select highlights of the report mentioning Crypto:
- CSA members were part of a 20-country investigation that resulted in the United States Securities and Exchange Commission charging defendants for participating in multi-year fraudulent penny stock schemes that generated more than USD$194 million in illicit proceeds.
- CSA members engaged in a number of NASAA initiatives, including virtual investigative training to help support cross- jurisdictional enforcement efforts and NASAA Connect, an online community that provides a place for members to share information, collaborate and ask and respond to questions.
See: Andrew Kriegler to lead Canada’s new SRO once formed (IIROC and MFDA)
- Improved our market analytics capacity and our technological capabilities to support our investigations and tackle sophisticated and evolving threats including refining our techniques to research and analyze crypto asset trading to better understand the full ecosystem and identify opportunities to disrupt misconduct at every stage, from investor solicitation to advertising to investing.
- We collaborated with third parties, such as law enforcement, the Canadian Anti-Fraud Centre, website domain registrars and crypto exchanges to root out misconduct and target fraudsters who lure investors into scams.
- Unfortunately, investors reported instances of high-pressure sales tactics being used to lure Canadians into fraudulent investment offerings, particularly related to crypto assets. The ease of using social media and the internet to disseminate false information, as well as the escalating market interest in crypto assets, were likely factors.
- The Enforcement Technology and Analytics Working Group, comprised of CSA members across the country, developed a reference framework on the establishment of digital forensic laboratories in a cloud-based environment.
- We developed and conducted training around novel technology and analytics issues and trends to ensure all jurisdictions have the latest insights to improve their enforcement capabilities, such as data mining the web, application programming interfaces for crypto asset trading platforms, and the use of decentralized finance technologies.
Continue to the full article --> here
Download the 14 page PDF 2021/22enforcement 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, 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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English Court Decision Sheds Light on Software Developers Legal Relationship and Duties Owed to Cryptoasset Owners
Linklaters | Ben Packer, Richard Hay, Michael Munk, Sophia Le Vesconte, Bonnie Yeung | Jun 27, 2022
The judgment in Tulip Trading Ltd v Bitcoin Association for BSV and Others sheds light on the legal relationship between the software developers behind various bitcoin networks and their participants. Notably, the court found that there was no case to be made that the developers had a duty to take action to undo the effects of an alleged theft. At the same time, the possibility of other legal duties falling on developers in the future was left open. Players in the crypto markets should be cognisant of this position, amid ongoing market turmoil.
The decision
Earlier this year, the High Court denied a prominent bitcoin holder, whose private keys to substantial holdings were allegedly taken in a cyber-attack, the right to serve a legal claim on a group of developers for failing to take action to restore the lost value into the claimant’s hands.
See: Code is Law Case: A Hamilton teen ‘hacked’ US$16 million in crypto (while he may not be in the wrong)
The case was brought by Tulip Trading Ltd (“Tulip”), which claimed that the defendants were the core developers behind various bitcoin networks and/or otherwise controlled the relevant software, and that they owed the claimant fiduciary and/or tortious duties to rectify the “theft” of private keys by writing and implementing a software “patch” that would restore Tulip’s access to the bitcoin assets. In setting aside permission to serve the claim out of the jurisdiction, Mrs Justice Falk held that there was no serious issue to be tried on the merits of the claim. Last month, Falk J also declined Tulip leave to appeal.
No fiduciary and tortious duties – for now
Falk J rejected the argument that the software developers owed the claimant a fiduciary duty. In particular, she noted that the defining characteristic of a fiduciary relationship is the obligation of undivided loyalty, and if the claimant’s argument were accepted, the steps that the defendants would have to take would be for the claimant’s benefit alone, to the exclusion of other users, to whom the defendants would also owe the same duty and who would have a legitimate complaint against the defendants.
Bitcoin networks are not financial institutions
Tulip argued that bitcoin networks “could be equated with financial institutions”, in the sense that “[f]unds were being entrusted to controllers of the Networks, who profited from their activities, and public policy required the imposition of a corresponding duty of care”, and therefore a duty of care similar to the duty of care on banks established in Barclays Bank v Quincecare [1992] 4 All ER 363 should be imposed on bitcoin networks.
See: tbDEX: Square Releases White Paper Detailing Protocol for a Decentralized Bitcoin Exchange
Falk J was not persuaded by the argument: in particular, she noted that the starting point for the Quincecare duty of care is the relationship of contract and agency between the bank and its customer. It is interesting that such arguments seen in the more traditional financial sphere were being deployed in the context of a decentralised network with no contractual framework, and the court’s rejection of the direct analogy should be welcomed.
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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Hong Kong VASP licensing regime starts March 1, 2023 and will be more rigorous than Singapore, the UK and Japan
Herbert Smith Freehills | Hannah Cassidy | Jun 27, 2022
The government acknowledges that the VASP licensing regime will be more rigorous and comprehensive than those in Singapore, the UK and Japan.
The Hong Kong government has gazetted amendments to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) to enhance Hong Kong’s anti-money laundering and counter-terrorist financing (AML/CFT) regulatory regime. The amendments will be introduced into the Legislative Council (LegCo) for first reading on 6 July 2022. A LegCo brief sets out an overview of the amendments, which follows the consultation conclusions published by the Financial Services and the Treasury Bureau in May 2021 on the proposed changes (see our 2021 briefing).
VASP licensing regime
- A new licensing regime for virtual asset service providers (VASPs) to be administered by the Securities and Futures Commission (SFC).
- It is proposed that the AMLO amendments relating to the VASP licensing regime will come into effect on 1 March 2023.
- Once in force, any person who seeks to carry on a business of providing a virtual asset service (currently limited to operating a virtual asset exchange (VA exchange)) will be required to apply to the SFC for a licence.
See: Hong Kong’s Web3 ‘Mr. Metaverse’ vs. Mark Zuckerberg
Operating a VA exchange entails providing services through means of electronic facilities where:
- offers to sell or purchase virtual assets are regularly made or accepted in a way that forms or results in a binding transaction; or
- persons are regularly introduced, or identified to other persons in order that they may negotiate or conclude, or with the reasonable expectation that they will negotiate or conclude sales or purchases of virtual assets in a way that forms or results in a binding transaction; and
- client money or client virtual assets comes into direct or indirect possession of the person providing such service.
Virtual assets in scope
The broad definition of “virtual asset” (see below) will capture Bitcoin and “altcoins” as expected. Stablecoins and certain governance tokens will also be in scope. While NFTs are not usually recognised as a medium of exchange accepted by the public, it is possible that they may be brought in scope in the future as the Secretary for Financial Services and the Treasury will be empowered to prescribe by notice published in the Gazette whether a particular asset is to be considered a virtual asset under the AMLO.
See: Do Industry Operators, Researchers, and Regulators Agree On How Big Crypto Crime Is?
“Virtual asset” will be defined under the AMLO as a cryptographically secured digital representation of value that:
- is expressed as a unit of account or a store of economic value; and
- either:
- is used (or is intended to be used) as a medium of exchange accepted by the public, for any one or more of the following purposes – (a) payment for goods or services, (b) discharge of a debt, or (c) investment; or
- provides rights, eligibility or access to vote on the management, administration or governance of the affairs in connection with, or to vote on any change of the terms of any arrangement applicable to, any cryptographically secured digital representation of value; and
- can be transferred, stored or traded electronically; and
- satisfies other characteristics prescribed by the SFC by notice published in the Gazette;
Or alternatively:
- is a digital representation of value prescribed as a virtual asset by the Secretary for Financial Services and the Treasury by notice published in the Gazette.
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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CSA releases 2022-2025 Business Plan focused on investor protection
CSA | Release | Jun 27, 2022
Montreal – The Canadian Securities Administrators (CSA) today released the2022-2025 CSA Business Plan, which outlines the priorities of its members over the next three years. The plan coincides with the appointment of Stan Magidson, Chair and CEO of the Alberta Securities Commission (ASC), as the new Chair of the CSA for a three-year term, effective July 1, 2022.
See: Why is FinTech so hard to regulate? 5 Challenges for Regulators
This new plan re-affirms the CSA’s commitment to responsive and harmonized regulation across Canada and alignment with international standards, where appropriate. In particular, the 2022-2025 Business Plan sets out six strategic goals focused on maintaining investor confidence in, and ensuring efficient operation of, the Canadian capital markets. The strategic goals are:
- Implement improvements to strengthen the capital markets regulatory system.
- Optimize investors’ ability to contribute to policymaking and expand investor education outreach.
- Improve investor protection by enhancing investors’ ability to obtain redress and by strengthening the advisor-client relationship.
- Address emerging market issues and trends.
- Deliver smart and responsive regulation that protects investors while reducing regulatory burden.
- Promote integrity and financial stability through effective market oversight.
See: Fraud Prevention Month: CSA encourages Canadians to ask questions before investing in crypto assets
Stan Magidson, Chair/CEO of ASC, New Chair, CSA
As I step into the role of CSA Chair, I look forward to working with my colleagues across Canada to deliver the initiatives in our 2022-2025 Business Plan and to building on the established strength and stability of the CSA. We will continue to collaborate to deliver on our goals and our mandate to protect investors, promote fair, transparent and efficient markets, reduce burden where possible, and reduce systemic risk.
In addition to these goals, the CSA will also continue its efforts to modernize the self-regulatory framework, establish the CSA Investor Advisory Panel, and consider investor calls for enhanced market participation related to sustainable finance matters.
The new business plan includes projects focused on modernizing electronic filings and data management, as well as raising awareness and increasing protection around emerging issues and threats such as crypto assets, investment gamification and do-it-yourself (DIY) investing. The plan also considers the impact of climate change-related risks and sustainable investing, and the impact of different age demographics, such as the increase in millennial investors and an aging population.
Continue to the original press 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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