Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Research
UK’s Future Crypto and Stablecoin Regulation
Crypto Regulation | Nov 1, 2023
Image: Unsplash/Nick Fewings
Herbet Smith Freehills Unpacks the UK's Progressive Stance on Cryptoasset and Stablecoin Regulation
The UK government has recently published a series of policy papers, shedding light on its future regulatory approach towards cryptoassets and fiat-backed stablecoins.
Herbert Smith Freehills law firm, expertly outlines the UKs forward-thinking regulatory framework and explores the delicate balance between nurturing innovation while ensuring financial integrity in the digital asset space.
Fiat-Backed Stablecoin Regulation (Phase 1)
- The UK's Financial Services and Markets Act 2023 has set the stage for the regulation of fiat-backed stablecoins, with secondary legislation expected to be introduced by early 2024.
- This legislation aims to bring activities related to fiat-backed stablecoins within the regulatory perimeter, empowering the Financial Conduct Authority (FCA) to oversee these digital assets.
- The government's policy update delineates the objectives of this upcoming legislation, ensuring a clear regulatory framework for stablecoins.
Wider Cryptoasset Regulation (Phase 2)
- The UK government has also published its response to the February 2023 consultation on the broader cryptoasset regulatory regime.
- This response clarifies and modifies some of the original proposals based on feedback received.
- The implementation of this broader regulatory framework is anticipated to commence post-2024, following the completion of Phase 1.
See: UK Releases Digital Asset Consultation Results
Managing Systemic Digital Settlement Asset (DSA) Firms
- The UK government intends to apply a modified Financial Market Infrastructure Special Administration Regime (FMI SAR) to manage the failure of systemic DSA firms, including stablecoin entities. This approach aims to ensure the stability and integrity of the digital asset ecosystem.
- Here's the link to the UK government response on 'Managing the failure of systematic digital settlement asset firms' (including stablecoins)
Further Notes:
- The government acknowledges the need for a precise legal mechanism to define and categorize cryptoassets, ensuring clarity for industry stakeholders.
- The UK's regulatory approach may diverge from the EU's MiCA and other jurisdictions, as portfolio management and investment advice on cryptoassets will not be regulated at this stage.
- Mining will remain unregulated, while the government plans to expedite exploratory work to clarify the regulatory treatment of staking activities.
See: FCA’s Expectations for UK Cryptoasset Businesses and the Travel Rule
- Delineation between Phases 1 and 2: The government provides greater clarity on the definitions and distinctions between regulated stablecoins and broader cryptoassets.
- Firms dealing directly with UK retail consumers will be required to obtain authorization, irrespective of their location.
The UK government's policy papers reflect a thoughtful and progressive approach to cryptoasset and stablecoin regulation, balancing innovation with consumer protection and financial stability.
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
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Insights Into Canada’s Evolving Payments Landscape
Payments Report | Oct 31, 2023
Digital Transactions and Evolving Consumer Trends: Insights from Payments Canada's 2023 Report
Drawing insights from the "Canadian Payment Methods and Trends Report 2023" by Payments Canada, this article analyzes the current state of digital payments, highlighting the surge in adoption, the variety of available options, and the shifting consumer preferences that are driving change in the financial sector.
General Overview
- Total Transactions (2022): 20.5 billion transactions valued at $11.7 trillion.
- Market Growth (2022): 4% in volume and 7% in value from 2021.
- Economic Context: Return to pre-pandemic economic activity levels in late 2021, with challenges such as high inflation and rising interest rates in 2022.
Payment Trends and Usage
- Credit and Debit Cards: Dominated transaction volume with growth in usage.
- Cash Payments: Continued to decline, ranking fourth in transaction volume.
- Cheques: Accounted for a small fraction of total volume, decreasing by 45% over the past five years.
See: Bank Consortium to Launch “Paze” to Challenge Big Tech’s Fintech Dominance
- Online Transfers: Showed strong growth with a 328% increase over the past five years.
- EFT and Cheques: Dominated transaction value, combining to represent 87% of total value. EFT value grew by 11% year-over-year in 2022.
- Contactless Payments: Remained popular, although the pandemic's impact on behavior related to these payments has been waning.
- E-commerce: Accounted for 6.5% of retail sales in 2022.
Digital Payments and Innovations
- Usage Acceleration: Significant acceleration due to the COVID-19 pandemic, with high usage of digital and contactless payments.
- Adoption Among Older Canadians: Increased usage of digital payments, including contactless cards, mobile wallets, and stored payment details on websites/apps.
- Emerging Payment Methods: Increased usage in 2022, including "buy now, pay later," digital credit/debit cards, cryptocurrency, and biometric payment technologies.
- Consumer Comfort with Digital Payments: Varied based on age group and type of payment method.
Specific Statistics and Figures
- Comfort with Payment Innovations:
- Wearable Device Payments: 33% (18-34 years), 23% (35-54 years), 12% (55+ years)
- Home Assistant Payments: 18% (18-34 years), 11% (35-54 years), 5% (55+ years)
- Social Media Payments: 17% (18-34 years), 10% (35-54 years), 6% (55+ years)
See: Autonomous IoT Transactions and Micropayments
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- Biometric Store Payments: 44% (18-34 years), 36% (35-54 years), 32% (55+ years)
- QR Code Payments: 32% (18-34 years), 23% (35-54 years), 13% (55+ years)
- Likelihood to Use Specific Payment Innovations:
- One-Click Pay: 39% likely to use
- Invisible Payments: 41% likely to use
- Scan, Pay and Go: 35% comfortable to use
- Interac e-Transfer for In-Store Purchase: 37% comfortable to use
- Digital Payment Usage Among Older Canadians (55+ years):
- Tapping Card at Store: 77% (start of pandemic) to 89% (30 months into pandemic)
- Mobile Payment for Purchase: 14% to 46%
- Stored Payment Details: 29% to 43%
- Usage Increase of Emerging Payment Methods (2022):
- Tappable Smartphone Wallet: 53% increased usage
- Cryptocurrency: 59% increased usage
- Buy Now, Pay Later: 48% increased usage
- Biometrics for Purchases: 26% used in the past year
See: Preparing for Retail Payment Act Changes
- Business and Consumer Payment Preferences:
- EFT Credits for Major Suppliers: 39% of businesses used in 2022
- Importance of Payment Innovation for Business Health and Growth: 24% of businesses believe it's extremely important
- Real-Time Payments Interest:
- Sending Payments in Real-Time: 65% of Canadians interested
- Receiving Payments in Real-Time: 66% of Canadians interested
Future Outlook
It is evident that the Canadian payment landscape is undergoing transformation. The surge in digital transactions, coupled with evolving consumer trends and preferences, is paving the way for a more inclusive, efficient, and innovative financial ecosystem.
See: McKinsey Global Payments On Cusp of ‘Decoupled Era’
Emerging payment methods such as "buy now, pay later," cryptocurrency, and biometric payment technologies are gaining traction, indicating a future where diverse payment options coexist to cater to the varied needs of consumers and businesses alike. The interest in real-time payments further highlights the demand for instantaneous and seamless transactions, a demand that is likely to shape the future of payments in Canada.
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
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WealthTech in Asia-Pacific: A Trillion-Dollar Opportunity
McKinsey & Company Report | Oct 30, 2023
McKinsey & Company on the WealthTech Revolution in Asia-Pacific, A Trillion-Dollar Opportunity
- The Asia-Pacific wealth management market is brimming with potential, estimated to reach $81 trillion in onshore personal financial assets (PFA) by 2027, propelled by technological innovations and shifts in customer behavior.
- This translates to a staggering $1 trillion in revenue pools across the wealth continuum.
- The affluent segment is highlighted for its growth potential, with a projected CAGR of 8% from 2022 to 2027, and a wealth management penetration rate expected to increase from 15-20% to 22-27% during the same period.
See: The future of Asia: Asian flows and networks are defining the next phase of globalization
- The WealthTech sector is rapidly gaining traction with 40-45% of PFA in the region held in cash and deposits.
- Broadening access to wealth management services, especially for the untapped and underserved segments.
- The industry is moving towards providing "advice for all," enabling a wider range of customers to benefit from financial advice and investment opportunities.
- The future of wealth management in the region is expected to be dominated by digital-hybrid platforms, providing flexible and on-demand advisory services, driving a shift away from the traditional high-touch, relationship manager models.
- The report highlights the need for personalization at scale and emphasizes the importance of investor education to empower individuals to make informed financial decisions.
3 Primary Ways To Serve Customers
1. User-Friendly WealthTech Platforms (Direct-to-Consumer)
These digital platforms are easy to use and offer a variety of assets for trading, both public and private. Customers can get financial advice through online channels, either completely digital or a mix of online and in-person services. This type of WealthTech makes financial advice accessible to a wider range of customers, from everyday people to the wealthy, and provides more online interaction options for high-net-worth individuals.
- Wealthsimple: Based in Toronto, Wealthsimple is a popular digital investment platform that offers a variety of financial products and services, including robo-advisory, commission-free trading, and savings accounts. The platform is designed to be user-friendly, catering to both novice and experienced investors.
See: McKinsey Global Payments On Cusp of ‘Decoupled Era’
2. Tech Solutions for Financial Firms (Business-to-Financial Institutions)
These WealthTech companies provide technology solutions to help financial firms or other WealthTechs improve their online wealth management services. They might specialize in certain parts of the service, like sales or portfolio management, or offer complete solutions to upgrade a firm’s entire digital wealth management system, making it more functional and integrated.
- PureFacts Financial Solutions: Located in Toronto, PureFacts provides wealth management solutions for financial advisors and institutions. Their services include fee billing, performance reporting, and client portals, aiming to enhance the digital capabilities of wealth management firms.
3. Digital Tools for Financial Advisors (Business-to-Financial Advisors)
This group focuses on creating digital tools specifically for financial advisors, making their jobs more efficient and allowing them to spend more time helping customers. They also provide a platform for customers to track their investments online. Some leading platforms in this category are challenging the traditional commission-based model by offering their services to customers for free.
- Croesus: Based in Montreal, Croesus offers portfolio management and CRM solutions tailored for financial advisors. Their platform aims to streamline advisors' workflows, enhance client engagement, and provide insightful analytics.
See: Tips on Establishing Your Small Business in the Asian Market
Steffen Pauls, chief executive office, Moonfare:
We also notice that the emerging, digitally native generation no longer looks for advice from classic intermediaries, but is taking advice from peer groups. People want better access to knowledge, not only the institutional type. Banks have to do something because they do not have sustainable business models.
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
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UK Releases Digital Asset Consultation Results
Regulation | Oct 30, 2023
Image: HM Treasury Report on Crypto Asset Regulation Oct 2023
UK Government's Cryptoasset Consultation Reveals Strong Support for Clear, Phased, and Balanced Regulatory Framework
The UK government has confirmed its intention to legislate the first set of rules to regulate the crypto sector, requiring market participants to be authorized before offering services to consumers. This move is in line with global trends, as the European Union has already started implementing comprehensive rules for cryptoasset markets. The UK's finance ministry is drawing lessons from the FTX collapse, focusing on cryptoassets and the underlying distributed ledger technology (DLT) to enhance the settlement of securities.
See: FCA’s Expectations for UK Cryptoasset Businesses and the Travel Rule
Acknowledging the distinct nature of cryptoassets, the UK is dedicated to developing bespoke rules tailored to the specific risks and opportunities presented by digital currencies. The proposed regulations will cover a wide range of activities, including trading, investments, and custody of cryptoassets. The government has actively sought input from various stakeholders through a public consultation, ensuring a well-informed and balanced regulatory framework.
Prominent Consultation Result Themes
- The government received 131 responses from a wide range of stakeholders, including crypto native firms, traditional financial services firms, industry associations, legal and consulting firms, consumer groups, and members of the public or academia. The feedback was mostly supportive, with 79% of respondents showing support for the government’s overall approach.
- Respondents called for clearer definitions and treatment of Non-Fungible Tokens (NFTs), utility tokens, and security tokens, emphasizing the need to distinguish between financial services use cases and other applications.
- There were concerns about the treatment of overseas firms and the applicability of existing exemptions, highlighting the need for clarity on market access policies.
- Stakeholders requested a more detailed delineation between phase 1 and phase 2 activities, and suggested a phased approach to implementation, particularly for market abuse surveillance obligations.
See: UK PRA Launches Diversity and Inclusion Consultation
- The feedback underscored the importance of distinguishing between services provided to professional versus retail consumers, and called for measures to minimize barriers to entry for smaller firms.
- Respondents highlighted the need for effective cross-border enforcement mechanisms and international coordination, and urged caution in regulating Decentralised Finance (DeFi) to avoid pre-empting international efforts.
- Stakeholders emphasized the importance of fostering innovation and ensuring the regulatory framework reflects the unique risks and opportunities associated with cryptoassets, including considerations for sustainability.
Overall, the feedback reflects a desire for a balanced, clear, and phased regulatory approach that supports innovation while ensuring consumer protection and market integrity.
Download the 94 page PDF consultation results 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
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Up-and-Coming FinTech Companies in Scotland That You Need to Know About
Oct 26, 2023
Photo by Gerzon Piñata from Pexels
FinTech companies are the future of the economy in Scotland but which ones do you need to know about?
The world of finance and technology has seen remarkable growth in recent years, and Scotland is no exception to this trend. Every Scottish law firm has been witnessing the rapid rise of numerous FinTech companies in the region.
These innovative companies are not only addressing real-world financial challenges but are also experiencing substantial growth due to the increasing demand for their cutting-edge services.
Here's a closer look at some of the promising FinTech companies that you should keep an eye on.
8 Up and Coming Scottish Fintech Brands
1. Aveni AI
Aveni AI is uniquely positioned at the intersection of two of Scotland's most dynamic sectors: artificial intelligence (AI) and fintech. Headquartered in Leith, this start-up leverages cutting-edge AI technology to analyse conversational data and enhance customer experiences.
While initially catering to the financial service sector, Aveni AI has ambitious long-term plans to expand its innovative solutions into other regulated industries, such as utilities.
Co-founded by Joseph Twigg and Moray Martin, the company has achieved remarkable growth since its inception in 2018, a growth trajectory that only accelerated during the pandemic.
In June of last year, Aveni secured £1.1 million in funding, led by the Tricapital Angel syndicate. Just last month, it raised an additional £2.75 million to fast-track the expansion of its Aveni Detect platform.
2. Coastr
Coastr offers a cloud-based, all-in-one vehicle rental management system designed to help rental firms digitise their services and streamline operations. Based in Leith, this firm's innovative software is geared towards delivering cost savings and revenue optimisation for independent rental companies.
Founded by Biswajit Kundu Roy in 2018, Coastr has experienced rapid growth since its inception. In September of the previous year, the company secured £1.4 million in funding and boasts several significant partnerships.
Photo by RDNE Stock project from Pexels
3. Float
Float is one of the more established companies on our list and has emerged as one of Scotland's top fintech firms in recent years. Established in 2012, Float provides cash management and online forecasting software, empowering businesses to track, monitor, and adjust their cash flow effectively.
Businesses can easily integrate Float's platform with their preferred accounting software, such as Xero, FreeAgent, or QuickBooks. Founder Colin Hewitt launched the company following his own experiences with cash flow challenges during his tenure running a digital agency.
4. Know-it
Glasgow-based fintech Know-it offers a cloud-based credit management platform designed to streamline and optimise credit control processes. Founded by CEO Lynne Darcey-Quigley, the company primarily caters to the SME market.
The Know-it platform allows businesses to conduct credit checks, monitor payments, and efficiently collect overdue unpaid invoices. In December 2021, the company was recognised among several Scottish tech companies in Tech Nation's Rising Stars 4.0 program.
5. Loveelectric
Loveelectric is another Scottish startup operating at the intersection of two dynamic sectors: fintech and electric vehicles. Founded by former Money Dashboard CEO Steve Tigar, Loveelectric aims to increase the adoption of electric vehicles by enhancing affordability and accessibility.
The firm's innovative leasing scheme seeks to encourage more businesses to embrace eco-friendly transport by significantly reducing the cost of vehicle leasing. Scottish businesses operating profitably for two years or more can participate in the scheme, allowing their staff to secure a vehicle for personal or business use.
6. Nova Finance
While relatively new to the Scottish startup scene, Nova Finance is making a significant impact. The company describes itself as a "non-custodial programmable asset protocol" built for decentralised finance (DeFi).
Nova's platform enables users to develop investment portfolios and automates traditionally complex investor and yield strategies, making cryptocurrency investments more accessible to everyday investors.
Co-founded by Adam Greenberg and Tom Sichel, the duo behind SageCity, Nova Finance secured $3 million in funding last year and is currently building its consumer-focused application, slated for an official launch later this year.
7. Nude
Getting a foothold on the property ladder is a formidable challenge for many in the UK, especially in 2022 amid rising house prices and a growing cost-of-living crisis. Glasgow-based fintech Nude lends a helping hand to first-time homebuyers, enabling them to open savings or investment accounts, bolster their deposits, and access vital government incentives.
Officially launched in 2020 after raising £3.6 million in funding, Nude has seen remarkable growth. It was recently recognised by Moneysavingexpert for offering one of the UK's top lifetime ISAs.
8. OneBanks
The problem of bank branch closures is affecting communities across Scotland, with research indicating that up to half-a-million Scots could be "left behind" as traditional banks withdraw from the high street. Glasgow-based OneBanks is on a mission to bridge the gap left by these closures and continue offering physical banking services.
Founded in 2020 by entrepreneur Duncan Cockburn, the firm provides physical banking services at selected sites across the country and currently operates three pilot 'kiosks' in towns with no bank branches.
The company has experienced rapid growth since its launch and recently appointed a new chief operations officer and non-executive director in preparation for national expansion later this year.
Why These Companies Are Up-and-Coming
These companies have garnered attention due to their innovative FinTech solutions that address critical financial issues. With the rising demand for their services, they have experienced significant growth.
Their commitment to solving real-world problems and their adaptability to changing market demands have played a pivotal role in their success.
What the Future Holds for These Companies
The future appears promising for these FinTech companies. Operating in high-growth markets, they possess the potential to become major players in the global FinTech industry. Their innovative approaches and adaptability to market dynamics make them well-positioned for sustained success.
Photo by Expect Best from Pexels
Up and Coming FinTech Companies in Scotland
Scotland's burgeoning FinTech sector is attracting attention not only locally but also on a global scale. The region's supportive ecosystem, combined with these innovative companies, is contributing to Scotland's growing prominence in the FinTech industry.
See: Plaid’s Annual ‘Fintech Effect’ Report Shows 84% of UK Consumers Use Fintechs to Manage Money
As these companies continue to innovate and expand, they are set to make a lasting impact on the financial technology industry. Stay tuned for their exciting journey in the world of FinTech.
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
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AI and Children’s Privacy and Consent
Privacy | Oct 24, 2023
Today, children are growing up surrounded by Artificial Intelligence (AI), from interactive toys and virtual assistants to educational software and video games. AI is 'everywhere all at once' and reshaping their experiences, raising critical questions about its impact on their right to privacy.
- The CSA Group, a global leader in standards development and testing, has published a research report 'Children's Safety and Privacy in the Digital Age', funded by the Office of the Privacy Commissioner of Canada (OPC), to better understand the privacy risks associated with AI, and to recommend a course towards a safer digital future for our children.
The Pervasiveness of AI in Children's Lives
- AI technologies are deeply integrated into children's lives, providing recommendations on what to watch, read, listen to, and even whom to befriend. However, the extent of AI’s presence varies, with some applications being more visible than others.
- For instance, interactive toys like Mattel’s Hello Barbie utilize voice recognition and algorithmic data collection, while educational settings employ AI-based anti-plagiarism software and evaluation tools. While these technologies offer convenience and personalized experiences, they also raise critical questions about children's right to privacy.
See: Meta Files New Patent: Voice ID Data for User Authentication…Progress or Privacy Concern?
- The lack of transparency and oversight in these decision-making processes further exacerbates the risks. Children are particularly vulnerable as they may not fully comprehend the implications of their online interactions.
- AI systems, driven by vast amounts of data, make decisions that can significantly impact children's lives, both in the present and future.
Rethinking Consent Mechanisms
- The existing consent framework falls short in tackling AI-related privacy challenges impacting children, with Canadian policies primarily centered on adult privacy rights, neglecting children's unique needs.
- Since minors lack the legal capacity to give consent, this duty shifts to parents, a situation complicated by the intricate nature of AI systems and the far-reaching consequences of data collection.
- This necessitates a critical reevaluation of our approach to obtaining and handling consent in the context of children's interactions with AI.
Privacy by Design is Critical
- This approach entails embedding privacy safeguards into the products from the outset, minimizing the data collected, and ensuring that children's needs are prioritized. Manufacturers, many of whom may not have expertise in software design or cybersecurity, would benefit from best practices and guidance in this area.
See: Epic Games Raises $2 Billion From Lego Investors & Sony for Family-friendly Metaverse
- Addressing the privacy risks associated with AI requires a collaborative effort. Policymakers, industry leaders, children's advocates, and the children themselves must come together to develop and implement effective solutions. The creation of advisory panels and the conduct of collaborative workshops, as done by CSA Group, are steps in the right direction.
Recommendations for a Safer Digital Future
- Targeted actions are required to address the gaps in policies and solutions related to AI and children’s digital privacy.
- Privacy by Design: Intervening during the design phase of AI-based technologies can restrict unnecessary data collection and embed governance measures.
- Support for All Stakeholders: Parents, children, policymakers, regulators, and manufacturers all need support and guidance to navigate the complexities of AI and privacy.
- Engagement and Collaboration: Creating an advisory panel comprising children's advocates, researchers, and industry experts can provide diverse perspectives and drive constructive solutions.
See: ChatGPT Faces Investigation by Canadian Privacy Commissioner
- Strategic Interventions: Addressing AI-related children's privacy risks requires interventions from design and technology adoption to monitoring and accountability.
- Informed Consent and Privacy Rights: The mechanism of consent is complex, especially for children. There is a need for a more nuanced understanding of children's privacy rights, separate from their parents.
Conclusion
As AI continues to intertwine with children's daily lives, it is imperative to address the associated privacy risks proactively. By adopting a collaborative approach, involving all stakeholders, and focusing on privacy by design, we can create a digital environment that respects and protects children's privacy rights, ensuring a safer and more secure future for the next generation.
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
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Canada New AI Copyright Policy Consultation
AI Consultation | Oct 23, 2023
Image: Pixabay/Geralt
The Canadian government's Strategic Policy Sector has released the latest 2023 consultation paper addressing the copyright law challenges and opportunities presented by quickly emerging generative artificial intelligence (AI).
This current consultation builds upon perspectives gathered during the previous consultation in 2021 and the 2018-19 parliamentary review of the Copyright Act. The Canadian government's Strategic Policy Sector has outlined three main areas of policy concern in its consultation paper on copyright in the age of generative artificial intelligence (AI).
Below is a detailed list of these areas, including previous stakeholder perspectives (from the 2021 consultation) and the latest questions and scope for which the government seeks input:
1. Authorship and Ownership of AI-Assisted and AI-Generated Works
Previous Stakeholder Perspectives
- A range of views were expressed, with some stakeholders from the creative industries open to exploring 'thin' copyright protection for AI-generated works.
- Only a small number of submissions genuinely supported copyright protection for AI-generated works.
- Concerns were raised about the registration of AI-generated works by the Canadian Intellectual Property Office.
See: Generative AI: A Primer On Canadian AI and IP
Latest Questions
- Is the uncertainty surrounding authorship or ownership of AI-assisted and AI-generated works impacting the development and adoption of AI technologies? If so, how?
- Should the government propose any clarification or modification of the copyright ownership and authorship regimes in light of AI-assisted or AI-generated works? If so, how?
- Are there approaches in other jurisdictions that could inform a Canadian consideration of this issue?
2. Infringement and Liability Surrounding AI-Generated Works
Previous Stakeholder Perspectives
- During the 2021 consultation, only 12 submissions briefly discussed this question.
- Some stakeholders believed existing liability rules in the Act are sufficient, while others called for more evidence on how AI technology is used before reviewing copyright infringement and liability regimes.
- Suggestions included implementing record-keeping requirements for those involved in AI development and deployment, and control mechanisms to remove infringing AI-generated content.
See: FCA’s Emerging Regulatory Strategy for Big Tech and Artificial Intelligence
Latest Questions
- Are there concerns about existing legal tests for demonstrating that an AI-generated work infringes copyright (e.g. AI-generated works including complete reproductions or a substantial part of the works that were used in TDM, licensed or otherwise)?
- What are the barriers to determining whether an AI system accessed or copied a specific copyright-protected content when generating an infringing output?
- When commercialising AI applications, what measures are businesses taking to mitigate risks of liability for infringing AI-generated works?
- Should there be greater clarity on where liability lies when AI-generated works infringe existing copyright-protected works?
- Are there approaches in other jurisdictions that could inform a Canadian consideration of this issue?
3. Potential Impact on the AI Marketplace
Previous Stakeholder Perspectives
- The previous consultations and discussions have highlighted the need for a balanced approach that supports innovation in AI while protecting the rights of creators and stakeholders in the creative industries.
See: Comparing Global Regulations on ChatGPT: Italy Sets Precedent with Ban
Latest Questions
- The consultation paper does not explicitly list questions under this category, but the entire document and the questions listed under the other two categories implicitly address the potential impact on the AI marketplace.
- The government is seeking input on how to balance support for innovation and investment in AI with the protection of creative industries and copyright owners' rights.
Consultation Deadline December 4, 2023
To engage in this important dialogue and share your insights, we invite you to contribute through our online consultation form before the deadline on December 4, 2023. Utilizing this form is crucial as it ensures the swift and accessible processing of your feedback. Please note that all submissions made via this platform will become publicly accessible once the consultation period concludes.
For any inquiries or further clarification, feel free to reach out to us at copyrightconsultations-consultationsdroitdauteur@ised-isde.gc.ca. Your participation is invaluable in shaping the future of copyright in the age of generative AI in Canada.
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
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