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
Bitcoin Falls to Lowest in Month as El Salvador Rollout Falters
Bloomberg | Vildana Hajric | Sep 7, 2021
Bitcoin plunged as much as 17% to its lowest level in a month as El Salvador’s crypto rollout appeared to be faltering.
The largest cryptocurrency fell as low as $43,050 in New York Tuesday, tumbling more than 10% in the course of an hour, before recouping about half the losses. The Bloomberg Galaxy Crypto Index, which tracks some of the largest digital tokens, lost as much as 19% at one point.
“Mystery selloffs, or selloffs where a legitimate reason is only found a significant while later are much more common in crypto than in other asset classes,” said Stephane Ouellette, chief executive and co-founder of FRNT Financial. “The market remains far more opaque and global than most if not all other notable asset classes.”
See: El Salvador approves Bitcoin as legal tender – the first country to do so
The swiftness of the plunge was likely accelerated as more than 336,000 traders had their accounts liquidated over the past 24 hours, equal to around $3.6 billion worth of crypto, according to data from Bybt, a crypto futures trading and information platform.
“It didn’t surprise me that Bitcoin didn’t rally on the El Salvador news, but this pullback is weird, especially since it came mid-morning and not shortly after the news broke,” said Matt Maley, chief market strategist for Miller Tabak + Co. “If it was a ‘fat finger’ at a hedge fund or brokerage firm, it won’t be a problem. If it is something else, I’ll become a lot more worried.”
The retreat comes as Bitcoin faces one of its biggest test in its 12-year history as El Salvador became the first country to adopt it as legal tender. The Central American nation’s president, Nayib Bukele, said on Twitter that the digital wallet being used in the project can now be downloaded after it was shut down earlier because of technical glitches.
The wallet, known as Chivo, comes pre-loaded with $30 worth of the currency for users who register with a Salvadoran national ID number.
See: Crypto in Canada: Where are we today, and where are we heading?
Users on platforms including Twitter and Reddit had discussed plans to buy $30 worth of Bitcoin en masse on Tuesday to mark El Salvador’s law coming into effect. The potential coordinated price pump echoes previous online campaigns targeting meme stocks like GameStop Corp.
Bukele also said during the price slide that he was buying the dip, commenting on Twitter that 150 new coins were added and that the country now holds 550 Bitcoin. “Cryptocurrency” and “cryptocurrencis” were trending on Twitter at one point.
Just walked into a McDonald's in San Salvador to see if I could pay for my breakfast with bitcoin, tbh fully expecting to be told no.
But low and behold, they printed a ticket with QR that took me to a webpage with Lightning invoice, and now I'm enjoying my desayuno traditional! pic.twitter.com/NYCkMNbv7U
— Aaron van Wirdum (@AaronvanW) September 7, 2021
https://twitter.com/maguiluz301/status/1435267945412890631?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1435267945412890631%7Ctwgr%5E%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fd-42912818683435902027.ampproject.net%2F2108192119000%2Fframe.html
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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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The Carbon Footprint of Cryptocurrency
Smart Prosperity Institute | Podcast | Aug 18, 2021
IN THIS EPISODE:
The carbon footprint of cryptocurrency
What do Sweden, Argentina, Norway, Belgium, Ukraine and Chile have in common? They all consume less electricity in one year than Bitcoin does. Yes, Bitcoin, the cryptocurrency that is shaking up the financial world, is a massive energy hog. In fact, Bitcoin “miners” have been responsible for bringing retired coal and natural gas plants back online in order to satisfy their energy needs.
Why is Bitcoin so dirty? Can cryptocurrencies go green?
Guest: Alex de Vries – Economist and founder of Digiconomist.net
See: How blockchain and cryptocurrencies can help build a greener future
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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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Tether banned on Canada’s first 2 licensed digital currency exchanges
Coingeek | Steve Kaaru | Aug 31, 2021
A Canadian securities regulator has barred the country’s first two registered digital currency exchanges from trading Tether (USDT). The stablecoin, which is seemingly printed at will and has been deeply linked to alleged market manipulation, is the only prohibited digital asset in the country to date.
The Ontario Securities Commission has a history of being tough against digital currency operators. After giving exchanges an April deadline to license their operations, it has been cracking the whip on those that didn’t, from Poloniex to KuCoin, OKEx, and Bybit.
Now, it has set its sights on the world’s biggest stablecoin, USDT.
The commission has barred Coinberry and Wealthsimple exchanges from offering Tether trading services. The two are the first exchanges in Canada to receive an operating license allowing them to offer digital currency trading services across all the provinces in Canada.
Coinberry received its approval from the Canadian Securities Administrators (CSA) a week ago, allowing it “to offer Canadians crypto-based products and services on a regulated platform.” It boasts of being the first pure-play exchange to receive the license in Canada. Wealthsimple received the approval first, but unlike its peer, it doesn’t allow its users to withdraw their digital assets, much like Robinhood Crypto.
See: Bitfinex and Tether Fined $18.5M and Banned from Operating in New York
Despite receiving the regulatory approvals to serve Canadians, the two exchanges will not be able to offer USDT. The stablecoin was the only one listed under “Prohibited Crypto Assets,” with the regulator offering no reasoning for its decision.
Banning Tether was justified, and here’s why
The ban on trading of USDT has been a long time coming, and the Ontario regulator has taken a step that many other bigger watchdogs should have years ago.
Tether’s controversies and issues are unending. From market manipulation to shady and unchecked printing of tokens to links with illegal outfits, the stablecoin has it all, and then some.
While it could have listed any of these reasons, the Ontario watchdog chose to shy away, with a representative telling one news outlet, “We do not currently plan to introduce new rules specifically applicable to platforms, as platforms are already subject to existing requirements under securities legislation in Canada.”
See: Is Tether a Black Swan?
One Canadian lawyer was much blunter, however, citing the endless legal battles by Tether and its sister company Bitfinex as a key factor for the ban in Ontario.
Christine Duhaime stated,
“With respect to Tether and Bitfinex, the report by the New York AG likely did not provide comfort to the securities regulators and in the eyes of a government regulator, is likely going to be viewed as high-risk.”
The lawyer, who specializes in fintech, was referring to an action by Letitia James, the New York Attorney General on Tether and Bitfinex for allegedly suffering an $850 million loss and covering it up. AG James settled with the two earlier this year, requiring them to cease all activities in New York and to pay close to $20 million in fines.
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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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After costly legal misstep, Sweden must give Bitcoin worth €1.3 million back to convicted drug dealers
Euro News | Tom Bateman
Three convicted drug dealers will have over €1.3 million worth of Bitcoin returned to them by the Swedish government after a legal misstep saw prosecutors value the proceeds of their crime in Swedish Krona and not in crypto.
Prosecutor Tove Kullberg successfully charged the men in April 2019, arguing that 36 Bitcoin seized by Swedish police the year before should be confiscated as they were earned through their illegal online drug sales.
However, in her indictment, Kullberg converted the value of the cryptocurrency to Swedish krona, meaning the government was only legally entitled to seize the cash value of the Bitcoin at the time - roughly 1.3 million krona (€127,000).
"It is unfortunate in many ways," she told national broadcaster Sveriges Radio. "It has led to consequences I was not able to foresee at the time".
According to Kullberg, the case was among the first occasions Swedish prosecutors had been faced with handling the proceeds of crime denominated in cryptocurrency.
How did this happen?
After the men were sent to prison in May 2019, it fell to Sweden's State Enforcement Authority to auction off the proceeds of the drug crime, a process that took over two years to carry out.
In that time, the value of the 36 Bitcoin skyrocketed from roughly €130,000 to almost €1.5 million today.
See: SEC v. Ripple Legal Weeds: SEC caught erasing documents relevant to XRP lawsuit
"This means that when these Bitcoins are liquidated, there will be Bitcoin left over because the debt will be covered much faster," Kullberg told Sveriges Radio.
The men's debts will be covered by the sale of roughly three Bitcoin at today's prices, meaning the remaining balance of around 33 will be returned to them by the Swedish state.
"It is unfortunate that it has ended up this way. The lesson to be learned from this is to keep the value in Bitcoin. That the proceeds of crime are 36 Bitcoin, regardless of the value of the Bitcoin at the time," she said.
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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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ISSA Survey Results on Distributed Ledger Technology – Voice of the Customer
ISSA - Working Group Distributed Ledger Technology| Aug 2021
The DLT Voice of the Customer Working Group (WG) recently conducted a survey of Asset Owners and Investment Managers to highlight where they are on their journey towards DLT based investments (tokenised assets, Crypto currencies).
The intent was to validate what they want and need from the Securities Services industry. This work was initiated as a result of the 2020 Survey “DLT in the Real World” where it appeared that the investors were focused more on Crypto currencies rather than tokenised securities, which was the opposite of the capabilities that ISSA members were building.
Survey Questions and Responses:
Investment Outlook and Time Frames
See: WEF Insight Report: Digital Assets, Distributed Ledger Technology, and the Future of Capital Markets
Motivations to be Active in Digital Assets
See: LabCFTC Releases Primer on Digital Assets
Challenges Faced
Download the 8 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, 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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The Impact of Fintech on Central Bank Governance
IMF | Marianne Bechara, Wouter Bossu, Yan Liu, Arthur Rossi | Aug 24, 2021
Fintech presents unique opportunities for central banks. The rapid changes in technology that are transforming the financial system will allow central banks to enhance the execution of various of their core functions, such as currency issuance and payment systems.
But some aspects of fintech pose major challenges.
Central banks have always been at the cutting edge of financial technology and innovation. In the past, the invention of the banknote, the processing of payments through debits and credits in book-entry accounts, and the successive transitions of interbank payment systems from the telegraph to internet protocols were all transformative innovations.
See:
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BIS Research: CBDCs beyond borders: results from a survey of central banks
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Fintech Research and reports
Today, central banks are facing new and unprecedented challenges: distributed ledger technology, new data analytics (artificial intelligence [AI] and machine learning), and cloud computing, along with a wider spread of mobile access and increased internet speed and bandwidth.
The purpose of this note is to discuss the authors’ preliminary views on how, from a legal perspective, central banks can best deal with the impact of fintech on their governance. These preliminary views are based on a review of central banks’ reaction thus far to the challenges posed by fintech to the legal foundations of their governance.
Download the full 23 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, 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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Circle to Become National Digital Currency Bank
Decrpyt | Jeff John Roberts | Aug 9, 2021
Stablecoin giant Circle announced that they will be moving toward becoming a “National Digital Currency Bank” in an attempt to strengthen their existing USDC stablecoin, currently backed by a combination of US dollars, corporate bonds, and commercial paper.
Circle’s move has outsiders wondering how the increased federal oversight will impact business. Currently, Circle operates under state money transmission regulations, which are drastically less strict when compared to the federal guidelines they must follow to gain national bank certification. Many are speculating over whether these new guidelines will require full USD backing or if their current combination of backing will suffice. Other primary concerns surrounding USDC involve liquidity issues, especially when demand may be high.
See: More regulation coming: SEC Chairman signals stablecoins and other tokens could fall under its rules on security-based swaps
Why It Matters: The big question that has yet to be answered is whether or not federal regulators will allow Circle’s USDC to continue business as usual or if they will need to supply USD to back the asset. The $27.5 billion USDC currently in circulation is expected to grow to “hundreds of billions” in the coming years according to CEO Jeremy Allaire.
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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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