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
Finance Canada Launches AML/ATF Consultation to Strengthen Regime (Deadline August 1, 2023)
Finance Canada | Release | Jun 7, 2023
Image: Finance Canada
The Government of Canada has launched this public consultation to examine ways to improve Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime. Submissions to this consultation will close on August 1, 2023.
- The Government of Canada is undertaking a comprehensive review of its Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime in response to evolving risks and threats in the financial sector.
- The review is particularly crucial given the increased digitization of financial transactions and the emergence of new financial technologies, which present new potential avenues for illicit activity.
- The review will examine the effectiveness of existing legislative and regulatory frameworks in combating money laundering and terrorist financing and identify necessary improvements.
- It will also assess emerging risks in certain sectors, such as digital assets, crowdfunding platforms, mortgage lending entities, and armoured car companies, among others.
See: Guide: How to spot potential money laundering
- Key objectives include improving the detection and disruption of money laundering and terrorist financing activities, addressing higher-risk vulnerabilities, positioning Canada for its next FATF evaluation, and responding to recommendations from the Cullen Commission.
- As part of this process, the government is seeking feedback on potential policy measures that could be integrated into future legislative and regulatory amendments, with the goal of strengthening Canada's AML/ATF Regime.
Who Should Participate
Stakeholders from various sectors should participate in this consultation process, given the wide-ranging impact of money laundering and terrorist financing activities on the Canadian economy and society. Specifically:
- Financial Institutions and FinTech Companies: Given their direct involvement in the financial system, these entities can provide valuable insights on the operational challenges and potential solutions in the detection and prevention of money laundering and terrorist financing activities.
- Government Agencies: Different government departments involved in Canada's AML/ATF Regime can provide insights on policy implications, regulatory enforcement, and inter-agency coordination.
- Legal and Regulatory Experts: These individuals can contribute to the discussion around legislative and regulatory changes and their impact on Canada's AML/ATF Regime.
- Public Policy Think Tanks and Research Institutions: These groups can provide a research-based perspective on potential enhancements to the AML/ATF Regime.
- General Public: Given the broader societal implications of money laundering and terrorist financing, including the potential for financial instability and reduced trust in the financial system, the public's perspective is crucial in shaping a comprehensive and effective policy response.
How to participate (deadline August 1, 2023)
Email us your comments and feedback at fcs-scf@fin.gc.ca with "Consultation Submission" as the subject line.
Comments and feedback may also be sent by mail to:
Director General
Financial Crimes and Security Division
Financial Sector Policy Branch
Department of Finance Canada
90 Elgin Street
Ottawa ON K1A 0G5
See: Financial Crime Compliance is Ripe for Innovation – What Banks Need to Do?
By contributing to this consultation, these stakeholders can play a significant role in shaping the future of Canada's AML/ATF Regime, ultimately helping to enhance the safety and integrity of the nation's financial system.
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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Demystifying Responsible AI: An Organizational Guide to Selecting AI Process Frameworks
CSET |Mina Narayanan and Christian Schoeberl |Jun, 2023
Image: CSET
This report by CSET presents a matrix that organizes approximately 40 public process frameworks according to their areas of focus and the teams that can use them. Ultimately, the matrix helps organizations select the right resources for implementing responsible AI.
- Responsible AI Framework Selection Made Easy:
- Challenge:
- Process frameworks serve as essential blueprints for organizations aiming to implement responsible AI, but the overwhelming abundance and their generally broad audiences can pose challenges for organizations seeking the most suitable fit.
- This report provides a matrix consolidating about 40 public process frameworks, categorizing them based on focus areas and potential user groups, effectively simplifying the process of selecting resources for responsible AI implementation.
- Challenge:
See: OSFI and GRI report: AI in Finance Needs Safeguards, Explainability Key For Trust
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- How the Matrix Helps:
- Many process frameworks tend to lean towards generality, aiming for flexible application, which may be daunting for organizations inexperienced in executing responsible AI.
- The report not only helps identify potential user groups for these frameworks but also delves deeper into the utility dimension, which includes an AI system's components, its lifecycle stages, and other related characteristics. This analysis enables organizations to precisely apply frameworks according to their specific needs.
- Designed with the Development and Production team and the Governance team in mind, the matrix empowers these key players to confidently choose and apply frameworks that best serve their organization's responsible AI goals.
- How the Matrix Helps:
Continue to the full article --> here
Download the 35 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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Global Regulatory Collaboration Key to Cryptocurrency Asset Oversight, Urges World Economic Forum
Forbes India | Shashank Bhardwaj | May 26, 2023
Image: Unsplash/Zoltan Tasi
The World Economic Forum has released a study scrutinizing the different regulatory methods applied to the cryptocurrency sector, in addition to offering guidance to both governmental bodies and industry participants.
- Navigating Regulatory Challenges:
- The World Economic Forum (WEF), in collaboration with its Digital Currency Governance Consortium, released a comprehensive paper emphasizing the pressing need for global regulatory consistency in the cryptocurrency sector.
- This report emphasizes that the crypto industry's unique characteristics and potential risks don't always align with traditional financial regulatory models, thereby demanding novel, flexible approaches.
MiCAR: EU Crypto Regulation in the Making
Brookings: The Future of Crypto Regulation (On Demand and Transcript)
- Advocacy for Agile Regulation:
- The paper supports the implementation of "agile regulation," which encompasses a responsive, iterative approach, with multi-stakeholder input, such as regulatory sandboxes, guidance, and no-objection letters.
- It indicates that such an approach, already in place in regions like Switzerland and Japan, is more effective than a regulation-by-enforcement strategy as employed by the United States.
- Urging Cross-Jurisdictional Collaboration:
- Stressing the necessity for international cooperation and knowledge sharing, the paper strongly recommends policymakers and industry stakeholders to work in tandem across jurisdictions. The authors argue that the inherent transparency of blockchain technologies could enable more efficient and effective regulatory tools to address cross-border concerns, thereby creating a more stable and predictable crypto asset ecosystem.
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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Emerging Investors: Gen Z Canadians Take the Lead in Global Investment Trends
Wealth Professional | Steve Randall | May 26, 2023
A recent international study conducted by the CFA Institute and the FINRA Foundation focused on the investment behaviors of Gen Z individuals (aged 18-34) in Canada, the US, UK, and China.
- The study emphasized the need for governments, regulators, and investment professionals to support Gen Z by providing them with the necessary knowledge and educational tools to make informed investment decisions. It also noted the impact of macroeconomic factors, the rise of cryptocurrency, and the influence of social media "finfluencers" on the investment habits of this cohort.
See: Early-stage Investing – The Public gets a Seat at the Table
- The study revealed several key findings:
- Gen Z Canadians exhibit the highest level of investing activity among the four countries surveyed, with 74% owning at least one investment product. This figure surpasses China (57%), the US (56%), and the UK (49%).
- The fear of missing out (FOMO) was identified as the primary motivator for 40% of Canadian Gen Z individuals to start investing.
- Access to financial advice through social media and the availability of investing apps and cryptocurrencies were identified as significant factors influencing investment decisions.
- Cryptocurrencies served as the starting point for 35% of young Canadian investors, the highest proportion compared to the other countries.
- The study highlighted that 79% of Gen Z Canadians began investing before the age of 21. However, 56% of non-investors cited a lack of knowledge as the main barrier to investing.
- While Gen Z Canadians lead in many aspects, their top investing goal aligns with their international peers, with 55% aiming to save for travel or vacations. Interestingly, an equal percentage also cited paying monthly bills as their top concern.
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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OSC Publishes TestLab 2022 Report: Exploring Innovations in RegTech with Participate Solutions
OSC | Release | May 16, 2023
Image: OSC
The Ontario Securities Commission (OSC) today published its first report on OSC TestLab, the regulator’s testing environment designed to promote innovation and modernize regulation in Ontario’s capital markets.
- Promotion of RegTech Innovation:
- OSC TestLab, an initiative of the Ontario Securities Commission (OSC), has released its inaugural report outlining the importance of fostering regulatory technology (RegTech) innovation within the capital market.
- The report underscores the OSC's commitment to making product information more accessible, enhancing client relations, and improving information sharing. The TestLab initiative is designed to provide an environment for market participants and innovators to trial and refine new technologies and approaches.
See: OSC Announces New and Free SME Institute Webinars
- Collaborative Regulation:
- The OSC is transitioning from a top-down regulatory model to a more collaborative approach. By directly engaging with the capital market participants, the organization aims to better understand and address the challenges of RegTech innovation.
- The OSC has demonstrated this through their inaugural test, conducted between June and December 2022, in which seven businesses tested RegTech solutions with over 100 testers, providing invaluable insights and feedback.
- Encouraging Stakeholder Participation:
- The OSC is actively seeking public input and collaboration for future development in RegTech, underlining the importance of shared perspectives in driving innovation.
- The OSC's Innovation Office will support RegTech innovation by encouraging greater collaboration among innovators, regulators, and market participants. This includes exploring the potential for machine-readable securities regulation and encouraging capital markets testing through platforms like the OSC IdeaHub.
See: Financial Institutions and Regulators Alike are Showing Growing Interest in Fintech and Regtech Solutions.
- The following companies participated in the TestLab 2022 event
- They showcased their unique solutions designed to enhance regulatory technology (RegTech) in Ontario's capital markets. Their proposed solutions varied from wealth management to secure document storage, and they all shared a common goal to experiment, learn, and improve.
- Despite the different stages of business development, all participants agreed that the TestLab experience was beneficial in highlighting the challenges and successes in their development process. With feedback, several participants were able to enhance their solutions by adding features and functionalities to cater to the requirements of registrants.
- Both start-ups and multinational enterprises took part in this event, demonstrating that RegTech innovation is not confined to any specific type of business.
| Company Name | Problem Statement | Headquarters | Year Founded | Number of Employees |
|---|---|---|---|---|
| LockDocs Inc. | Enhancing advisor-client interactions | Toronto | 2020 | <10 |
| Mako Financial Technologies Inc. | Enhancing advisor-client interactions | Montreal | 2018 | <50 |
| Syntoniq Inc. | Enhancing advisor-client interactions | Seattle | 2017 | <30 |
| PW Portfolio Analytics Inc. (Wealthscope) | Making product information more accessible | Toronto | 2017 | <10 |
| TMX Group Inc. | 1. Making product information more accessible 2. Enhancing advisor-client interactions | Toronto | 2008 | 1,500+ |
| Broadridge Investor Communications Corp. | Making product information more accessible | New York + Markham | 1962 | 14,000+ |
| Morningstar Research Inc. | Enhancing advisor-client interactions | Chicago + Toronto | 1984 | 8,500+ |
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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Celebrating 7 Years of Regulation Crowdfunding: 4100 Startups Now Valued at $60 Billion
Crowdfund Capital Advisors | Sherwood Neiss | May 16, 2023
Image: Crowdfund Capital Advisors
Today marks a significant milestone as we celebrate the 7th anniversary of Regulation Crowdfunding (Reg CF).
Regulation Crowdfunding (Reg CF) has become successful for several reasons:
- Democratization of Investment: Reg CF has significantly democratized access to capital, enabling individuals to invest in the companies they believe in. This democratization has diversified the investor pool and allowed people who might not otherwise have access to investment opportunities to participate in the financial growth of startups and small businesses.
- Promotion of Diversity and Inclusivity: Reg CF has promoted diversity and inclusivity in the entrepreneurial ecosystem. With up to 50% of the capital going to companies with at least one woman or minority founder, this type of funding is opening the doors for underrepresented groups in business.
- Job Creation: Reg CF has proven to be a significant job creator. It has been instrumental in creating or supporting over 380,000 jobs, thereby becoming an important factor in driving local economies.
See: Equity Crowdfunding Demystified: Insights from Wefunder and Equivesto
As for the impact of Regulation Crowdfunding:
- Economic Impact: To date, $1.8 billion has been invested by 1.7 million investors into over 4,100 startups and small businesses across 1,700 cities in the USA. Moreover, it has contributed approximately $4.7 billion to the overall economy through salaries, inventory, rent, professional services, and various operational expenses.
- Wealth Creation: Companies that have raised funds via Reg CF are now valued at over $60 billion, indicating that average American investors have the potential to realize substantial wealth. This democratizes wealth creation, providing an opportunity for everyday Americans to partake in the financial success of early-stage companies.
- Promotion of Entrepreneurship: By unleashing the entrepreneurial spirit of America, Reg CF has generated jobs and fostered economic growth, becoming a powerful force in supporting local businesses and driving economic prosperity.
Overall, Regulation Crowdfunding has had a significant impact on the US economy and society by democratizing capital, creating wealth, generating jobs, and boosting local economies. Its future potential remains robust, with more opportunities expected to arise for individuals to participate in this transformative investment landscape.
See: CCA 2022 Investment Crowdfunding Report: 7 Charts Highlight Growth and Impact
Sherwood Neiss, Principal at Crowdfund Capital Advisor:
Regulation Crowdfunding has unlocked an unprecedented opportunity for everyday Americans to invest in early-stage companies and participate in the creation of wealth. It has brought about a level playing field, something that the private capital markets have not been able to accomplish until Reg CF became a reality.
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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Majority of Professional Investors Yet to Embrace Crypto, But Nearly Half Might Enter Through ETPs
Blockworks | Ben Strack | May 15, 2023
Image: Trackinsights
- According to a survey by Trackinsight:
- 75% of professional investors currently have no exposure to cryptocurrencies, but around 48% would consider investing in exchange-traded products (ETPs) focused on single-token cryptocurrencies, and
- 47% would consider ETPs offering exposure to multiple cryptocurrencies. This interest stems from ETPs being a more appealing way to gain exposure to cryptocurrencies than dealing directly with digital wallets.
- Traditional investments in cryptocurrencies are less attractive to these professional investors, with only 37% expressing interest in direct investment. Still, a significant portion (23%) stated they would not consider investing in crypto at all. The survey suggests a growing interest in cryptocurrency investment via ETPs given the recent surge in Bitcoin prices.
See: Industry Thinks Feds Are Trying to Kill Crypto, White House Denies It
- Surveyed professional investors remain largely focused on Bitcoin (59%) and Ether (49%). Asset managers are responding to this trend by seeking to launch new crypto-related products, including ETPs.
- Notably, Grayscale Investments has filed for three new ETFs, one of which would invest in other ETPs that hold or are backed by Bitcoin and Bitcoin mining companies.
- However, JPMorgan Asset Management noted that while ETFs are a great tool for diversification, offering crypto ETFs is not a focus for the firm in the near 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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