Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Voices
Kevin Durant’s Bitcoin Recovery and User Protection
Crypto | Sep 22, 2025
Image: Freepik/krakenimages.com
NBA Star’s Decade Long Highlights Risks of Account Lockouts and Customer Service
On September 20, 2025, Coinbase CEO Brian Armstrong announced that NBA star Kevin Durant had regained access to his Coinbase account nearly ten years after first buying Bitcoin, and then initially purchasing it for around $650 per Bitcoin in 2015, implying a whopping gain of more than 17,000% ten years later.
Armstrong confirmed the recovery on X, which followed Durant’s story earlier in the week at the CNBC x Boardroom Game Plan summit in Santa Monica. Durant described how he first bought Bitcoin in 2014–2015
See: Coinbase Pushes for Tokenized Equities Approval
We got this fixed. Account recovery complete! https://t.co/TWYFpQkXsb
— Brian Armstrong (@brian_armstrong) September 19, 2025
Kevin Durant’s Decade Long Bitcoin Recovery
Durant’s first exposure to Bitcoin came around 2014–2015, when he says he “started watching YouTube videos” about the emerging digital asset. Intrigued, he encouraged his agent, Rich Kleiman, to take a closer look. Their enthusiasm was quickly cooled when, according to Kleiman, their business manager “said, ‘No, don’t do that.’ So we didn’t.”
That might have been the end of the story if not for a party hosted by venture capitalist Ben Horowitz. Kleiman recounted how they heard Bitcoin mentioned repeatedly that night, and “we woke up the next day and said, ‘We have to do this.’” From there, they invested in Bitcoin and later became early backers of Coinbase through their firm Thirty Five Ventures.
See: Coinbase Breach Days Before S&P 500 Listing Milestone
According to Coindesk, Durant’s entry point was near $650 per Bitcoin in 2015, a level that makes his eventual recovery especially striking. With Bitcoin trading above $115,000 in September 2025, that original purchase reflects a gain of more than 17,000%, a staggering return on investment that Durant could only access once his Coinbase account was unlocked nearly a decade later.
Forced Hodling and Consumer Protection
Durant’s lost account access resulted in type of “forced hodling” through multiple market cycles. Chainalysis-based research on permanently lost Bitcoin estimates millions of crypto assets are out of reach because people have lost their passwords or recovery keys. That reduces the amount available to trade and makes the asset more scarce. Durant’s case shows that being locked out by accident can sometimes lead to big gains, but it also reveals the real danger for everyday users who may never regain access to their accounts.
Coinbase outlines strict processes for regaining access if emails or two factor devices are lost. Users may need to reset forgotten passwords, recover two factor authentication, or provide identity documents through account access troubleshooting. Many users report challenges completing these steps. After Durant’s recovery, social media threads filled with complaints from customers who have been locked out for years.
In response, Armstrong reposted a detailed thread from his support team on X, promising product improvements and faster support. Coinbase also maintains VIP service tiers for high volume traders. Reuters published an article in August 2025 about widespread user frustration with locked accounts and the Verge covered investigations into delays in customer support. Clearly more work needs to be done by Coinbase to support all customers, and not just celebrities that might be prioritized for obvious reasons.
Practical Takeaways for Crypto Users
Durant's experience of lost keys and account access can happen to even the most sophisticated investors, causing an incredible amount of frustration. Prevention is the best protection. Coinbase advises enabling multiple two factor authentication methods, including hardware keys, and updating recovery emails and phone numbers regularly.
See: U.S. Prepares to Count Crypto in Mortgage Rules
Also, users should evaluate the benefits and risks of storing crypto on exchanges versus self custody options using a secure wallet. Digital asset investors should only work with crypto exchanges that offer reliable recovery workflows and strong customer support.
Conclusion
Thanks to Durant's celebrity status, consumer protection from lost keys and account access is back in the news. For Durant, it's another story and a drop in the bucket but for regulators and industry leaders it's a recurring lessons that equitable account recovery and strong consumer support is essential to wider adoption. While new trading features are also being developed and released, crypto exchanges and leaders need to prioritize safeguarding access for all users.
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 aa 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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SEC Chair Backs Crypto Super Apps and AI Finance at OECD
Regulation | Sep 15, 2025
Image: Paul Atkins, SEC Chair
Atkins’ Paris Speech Puts Crypto Super Apps and AI Finance At the Heart of U.S. Capital Markets
On September 10, 2025, SEC Chair Paul S. Atkins delivered a keynote address in Paris at the OECD Roundtable on Global Financial Markets, resetting the tone for U.S. capital markets. His speech positioned the SEC not as an adversary to entrepreneurs but as an enabler of growth, advancing Project Crypto, a broad modernization initiative aimed at bringing securities regulation into the blockchain era.
Paul S. Atkins, SEC Chair:
“It is a new day at the SEC. Policy will no longer be set by ad hoc enforcement actions. We will provide clear, predictable rules of the road so that innovators can thrive in the United States.”
SEC Project Crypto Backs U.S. Crypto Super Apps
One of the most significant parts of Atkins' remarks was his (the SEC's) endorsement of “super-app” platforms. This vision is a welcomed 180 after years of a type of regulate by enforcement approach that drove many U.S. crypto companies overseas.
See: Made in China Trump Mobile Is a Fintech Bundling Play
For fintechs, it means a future where integrated platforms can grow under clear oversight, with investors able to choose from multiple custody models.
For Canadian innovators and regulators, it further raises urgent questions about how Canada will remain competitive if the U.S. creates a friendlier landscape for capital formation and digital asset services.
“We must allow for ‘super-app’ trading platform innovation that increases choice for market participants. Platforms should be able to offer trading, lending, and staking under a single regulatory umbrella.”
Competing with MiCA and Global Frameworks
Atkins acknowledged that Europe has already moved ahead with the Markets in Crypto Assets regulation, praising the framework as a first attempt at comprehensive digital asset oversight while stressing that the U.S. will not fall behind. By declaring that America must be “second to none” in fostering innovation, he more or less confirmed that the competitive race was on.
See: SEC and CFTC Open Door to Spot Crypto Trading
For Canadian fintechs, this accelerates the competition challenge with Europe and the U.S. both moving towards clarity, while Canada’s rules remain relatively limited. This moment calls for proportionate approaches to policy that reduce friction for innovators while protecting investors, as highlighted in NCFA’s Canadian Banks and Fintechs Back Regulated Stablecoin post.
AI Finance and Agentic Markets
Beyond crypto, Atkins described the changes coming in the era of “agentic finance” where autonomous AI agents execute trades, allocate capital, and manage risk with compliance built directly into their code.
Coupled with blockchain, he argued, AI could democratize access to advanced strategies and lower costs for individuals.
The challenge for regulators is to install commonsense guardrails without overreacting.
Fintech builders heard that AI in finance is not only here to stay but will be supported if developed responsibly.
Closing Thoughts
Atkins’ Paris keynote can be taken as a statement of intent. He placed crypto super apps, AI finance, and tokenized markets front and center of U.S. strategy. Fintechs and investors have immediate takeaways. That is regulatory clarity is coming, and the players and markets that adapt quickly will benefit most.
See: UK Publishes Draft Rules for Crypto Regulation
As U.S. and Europe continue to advance crypto regulatory frameworks, it's more critical than ever that Canada expeditiously create proportionate regulation, double down on enabling frameworks, and collaborate with global peers. Canada would benefit from positioning itself as a jurisdiction that rewards responsible experimentation. As Atkins put it, “crypto’s time has come.”
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 aa 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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Europe’s Fintech Reset at Point Zero Forum
European Fintech | Sep 8, 2025
Image: Navigating the Future of Finance magazine (Point Zero Forum)
What 1,350 Leaders in Zurich Said About the Future of Fintech and What Canada Should Take From It
The 2025 Point Zero Forum (Jun 24-26) in Zurich drew 1,350 participants from 66 countries, including over 20% from public sector institutions. Across 121 sessions spanning 95 hours, 329 speakers explored the future of finance and technology. These numbers matter because the forum is where central banks, regulators, and institutions compare notes on what is implementable now, not just what's aspirational.
See: DPI Digital Finance Works. Why Is Canada Still Waiting?
For Canadian fintechs, the conversations in Zurich are a warning and an opportunity. Europe is moving quickly to reset its financial infrastructure. Canada risks lagging unless it adapts. Read the post 2025 Point Zero Forum magazine, "A Critical Call for Policy Action in Europe and Beyond" (24 page PDF)
Europe’s Sovereignty Push
Offline payments and infrastructure security were considered a matter of national sovereignty, not just technology. Danmarks Nationalbank warned: “Without power, many offline payments methods aren’t viable,” linking payments directly to energy security.
The world’s largest stablecoin Tether confirmed it will leave Europe because of reserve and regulatory requirements. This shows that Europe is treating payments, AI, and data as part of its sovereignty strategy.
Canada has its own domestic payment systems operated by Payments Canada, but Canada still doesn't have live operating real-time retail payment rails. In cloud services, Canadian banks and fintechs are still dependent on American providers like AWS, Microsoft, and Google.
Central Banks Adjust to CBDCs and Stablecoins
Central banks are now focused on tokenized settlement. The Swiss National Bank said: “Price stability is our main focus also in challenging times,” while the European Central Bank stressed that central bank money must remain “available and useful” in tokenized markets.
See: Stablecoin Payments Have Wings – Are You Ready?
The Bank of England suggested that oversight of stablecoins may evolve as the “singleness of money” assumption is tested.
The Bank of Canada paused it's digital dollar research initiative. Europe and the U.K. are moving faster. Canadian fintechs should design tokenized solutions that can connect to global settlement networks, not just domestic payment systems.
Blockchain Risk and Liquidity
The Basel framework assigns a 1,250% risk weight to exposures on public blockchains compared to standard weights for permissioned systems. That number explains why institutions are cautious about public chains even as liquidity scale requires them.
Solana’s Lily Liu argued that “the 5.5bn people on the internet” can only be reached through open infrastructure, while regulators noted that immutability makes reversals and sanctions enforcement difficult. The likely outcome is a dual architecture with permissioned networks for issuance and compliance, and public networks for liquidity and settlement.
See: US Puts Economic GDP Data On Nine Blockchains
Canadian institutions face the same Basel capital rules as peers in other markets. Without clear guidance on the use of public versus permissioned networks, Canadian fintechs may find it harder to connect to global liquidity pools.
Agentic AI Adoption
68% of EU businesses say they struggle to understand their obligations under the EU AI Act, holding back investment. Global wealth manager, Julius Baer’s COO estimated that customer focused AI tools could generate revenue within 6 to 12 months.
At the forum, agentic AI systems were demoed handling insurance claims with observability features allowing human review. The key issue is still accountability with policymakers worrying about loss of control as AI systems become more autonomous.
Canada has not finalized its AI regulation but offers a voluntary AI code of conduct, giving fintechs some near term flexibility. But any deployment that scales internationally will need to comply with EU and U.S. standards. The strategic opportunity is to pilot auditable AI now while preparing for global regulatory alignment.
Private Markets and Tokenization
S&P projects global private equity will grow from $15 trillion in 2025 to $18 trillion by 2027. Citi and SIX Digital Exchange announced tokenized access to late-stage pre-IPO equities on SDX, launching in Q3 2025.
Tokenization will improve collateral usability and ownership visibility, but not resolve fundamental illiquidity or opaque valuations.
Canada has a growing private capital market but no regulated digital exchange on the scale of SIX. Canadian fintechs could position themselves as infrastructure providers for tokenized funds and secondary liquidity, complementing global platforms instead of competing directly.
Carbon Credits in Finance
At the forum, speakers pointed out that some carbon credits were issued for projects expected to reduce emissions over 30 years, even though the land rights lasted only 10 years. That kind of mismatch reduces trust in the market.
See: Stronger Teeth Needed to Protect Canada’s IP
Bringing carbon credits into mainstream finance could help spread risk and attract more investment. But for the market to work, credits must be backed by strong certification, insurance to cover project failures, and common standards that everyone follows.
Canada has compliance carbon pricing systems, but its voluntary carbon credit market is smaller and less standardized compared to Europe and Asia. Canadian fintechs could carve out a leadership role by building platforms that prioritize data integrity and risk coverage.
Key Takeaways for Fintech and Canada
- Offline payment resilience and energy dependence emerged as sovereignty challenges
- Stablecoin issuers are being pushed to localize reserves and adapt to stricter oversight
- Basel’s 1,250% risk weighting on public blockchain exposures is steering institutions toward permissioned networks even as liquidity pools remain on open chains
- In AI, accountability and observability are essential, yet 68% of EU businesses say regulatory uncertainty is holding back investment
- In climate finance, weak standards and mismatched project rights undermine confidence in carbon credits
See: Fintech Grows 3x Faster, 97% of Market Still Untapped
- Europe is changing its rules to strengthen control over its financial systems. Central banks are updating how payments and settlements work to handle tokenized markets. Access to private equity is shifting to digital exchanges. Adoption of AI is moving slowly because of legal uncertainty
- The implications for Canada are significant. Fintechs need to get ready to use AI systems that can be audited, connect to instant and offline payment systems, and plan for rules that may require reserves to be held locally. Tokenization should not be seen as a trial project, but as part of compliance and liquidity infrastructure
Closing Outlook
Canada must decide whether to keep pace with progressing markets in Europe and Asia or risk being shut out of global settlement networks. If Europe can move from pilots to architecture, Canadian fintechs must not stand still.
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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[Event Oct 8]: Rotman Debate on Canada’s Oligopolies
Competition | Aug 28, 2025
Rotman is Hosting A Debate to Test If Corporate Oligopolies Are Limiting Canada's Growth
On October 8, 2025, the Rotman School of Management will host an in person debate on one of the most contested questions in Canada’s economy: Are Canada’s so called oligopolies standing in the way of a dynamic Canadian economy?
This debate is at the heart of whether concentrated industries in banking, telecom, airlines, and grocery are reducing competition and consumer choice or whether a few large firms are needed to sustain investment in a relatively small market.
Event Overview
Host: Rotman School of Management
Rotman Debate: Are Canada's So-Called "Oligopolies" Holding Us Back?
Date: October 8, 2025
Time/venue: 6:00 PM to 8:00 PM at Desautels Hall
Agenda: Live in-person debate followed by a networking reception
Speakers and Perspectives
Arguing For
Anthony Durocher, Deputy Commissioner of the Competition Bureau, and Robin Shaban, economist and founder of the Canadian Anti Monopoly Project. They bring a competition policy and inclusive growth lens, pressing the case that concentration stifles productivity and affordability.
See: Stronger Teeth Needed to Protect Canada’s IP
They will likely emphasize how concentrated markets in banking, telecom, grocery, and airlines restrict consumer choice, keep prices high, and hurt innovation. Both have deep expertise in competition policy, which will resonate with Canadians worried about affordability, productivity, rising costs, and declining foreign direct investment.
Arguing Against
Erin O’Toole, former Leader of the Conservative Party and now President of ADIT North America, and Dany Assaf, co chair of Torys LLP’s competition and foreign investment practice. Their case focuses on the role of scale in driving resilience, capital inflows, and global competitiveness.
Expect them to argue that scale is necessary in Canada’s small market to attract global investment, maintain resilience, and provide stability. O’Toole brings political credibility and public speaking skills, while Assaf brings legal and transactional expertise from landmark competition cases.
Moderator
The debate will be moderated by Anne Gaviola, senior broadcast journalist at Global News, who has more than 15 years covering Canada’s business and financial sectors.
Why It Matters for Fintech
For the NCFA Canada, this debate could not be more timely. The structure and size of Canada’s markets and levels of competition directly affects opportunities for new entrants in fintech and alternative finance. Concentrated industries can create barriers to entry. With productivity and affordability now central to Canada’s policy agenda, the insights from this debate will be directly relevant for startups, investors, and regulators. This is a ticketed event. Register now to secure your spot.
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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Trump Media and Crypto.com Launch Cronos Treasury Firm
Crypto | Aug 28, 2025
Trump Media and Crypto.com Push Cronos into Corporate Finance
On Aug 26, 2025, the Trump Media & Technology Group, Crypto.com and Yorkville Acquisition Corp (SPAC). announced the launch of Trump Media Group CRO Strategy Inc., a new treasury firm designed to acquire, hold and actively manage large reserves of the Cronos token (CRO).
Devin Nunes, CEO of Trump Media, said:
“We continue to be bullish on cryptocurrency, and we are excited to be partnering with a leading global cryptocurrency platform and namesake of its industry in Crypto.com and one of the most sophisticated investor groups in Yorkville for this strategic initiative.”
The Deal Structure and Funding
The company will go public on Nasdaq under the ticker MCGA. The venture combines 6.3 billion CRO tokens valued at $1 billion (approx 19% of supply)+ $200 million in cash + $220 million in warrants + $5 billion equity line of credit from a Yorkville affiliate YA II PN. In total,$6.42 billion in committed resources.
Trump Media will also buy $105 million worth of cronos for its balance sheet, and Crypto.com has agreed to invest $50 million into Trump Media stock.
See: Crypto in Your 401(k)? Trump Opens the Door
All told, the deal will be the first and largest publicly traded CRO treasury company and what is being described as the largest deal ever when compared to the total size of the token’s market. The business combination is being reinforced by a mandatory 1 year lock-up and 3 year release schedule on founding shares. See Form 8-K filing.
Kris Marszalek, CEO of Crypto.com, said:
“The sheer size and structure of this project will encompass more than the entire current market capitalization of CRO … this, combined with share lock-ups by each party and the treasury’s validator strategy, make it a unique and compelling offering compared to all other digital asset treasuries.”
Markets reacted immediately. Cronos spiked nearly 30% in the hours after the news (currently trading at $0.3205 on CoinGecko), while Trump Media’s stock rose 5% to $18.11. Yorkville shares fell 2.4% on the day of the announcement. This is another massive deal for crypto and boost for corporate crypto treasury strategies.
Validator Node and Staking Strategy
One of the most distinctive aspects of the venture is its validator strategy. Trump Media Group CRO Strategy will establish and operate a validator node on the Cronos network, delegating CRO under management to that node. This allows the company to directly participate in the security and governance of the blockchain while generating native staking rewards that will be reinvested to grow CRO holdings and offset operational expenses.
Political and Regulatory Implications
AP reported that “the Trump family is expanding its crypto empire,” adding to a series of projects that include a proposed bitcoin ETF and a $2 billion bitcoin reserve. With the White House progressing friendly crypto policies, this venture shows how closely aligned political influence and corporate strategy can be, which raises conflict of interest and transparency questions, as Trump’s family business benefits directly from a favourable regulatory climate.
Why Canada and Its Regulators Must Pay Attention
The United States is moving fast with token-backed treasury vehicles and SPAC-financed listings, while Canada’s regulatory approach has been slower and more cautious. In Canada, a deal structured as a SPAC merger with a crypto corporate treasury at its core would likely not pass regulatory muster today.
That's a competitive gap. If American firms can put tokens on their balance sheets, raise capital through SPAC mergers, and connect those tokens to consumer platforms, they can innovate at a scale in a way that Canadian firms cannot match.
See: Canada’s Productivity Depends on Intangible Tech Adoption
The question for Canada is whether to stay on the sidelines or to create the right framework for safe experimentation. That could mean regulatory sandboxes for token-based treasuries, pilot programs to test new structures, or clearer rules that give firms confidence to innovate. Without these kinds of steps, Canada risks falling further behind (skilled jobs, innovation and global capital flows) as U.S. firms set the pace in crypto finance.
Outlook
The Trump Media and Crypto.com deal is an experiment to see if a token like cronos can play the same role in corporate reserves that bitcoin has for MicroStrategy. Investors jumped in quickly, but the approach still comes with the risks of big price swings and political baggage.
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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BIS Proposes Scoring Model for Crypto AML
AML | Aug 21, 2025
Image: Freepik/Sentavio
BIS Introduces AML Compliance Score Model for Crypto
On August 13 2025, the Bank for International Settlements (BIS) published a new bulletin proposing a fresh approach to anti money laundering (AML) compliance for cryptoassets. The paper suggests using the public record of blockchain transactions to generate AML compliance scores that could be applied when crypto is exchanged for fiat at off ramps.
Key Takeaways
- Traditional AML rules that rely on intermediaries are not effective for permissionless blockchains
- Blockchain transaction history can be used to assign AML compliance scores
- These scores could be checked at off ramps to prevent illicit funds from entering banks
- A scoring model could encourage a culture of duty of care across the crypto ecosystem
Why Traditional AML Approaches Fall Short for Crypto
Most AML rules today rely on regulated intermediaries like banks to perform customer checks, however that approach doesn't work well for permissionless blockchains, where records are maintained by decentralized validators instead of a single entity. Once crypto moves from an exchange to an unhosted wallet, conventional checks lose their reach. This gap is important as stablecoins have overtaken bitcoin as the main vehicle for illicit crypto transactions, accounting for an estimated 63% of criminal activity in 2024 according to both the Chainalysis 2025 crypto crime report.
How AML Compliance Scores Could Work
The BIS paper suggests using blockchain’s public history to assign compliance scores to cryptoassets. A higher score would indicate clean funds tied to verified wallets, while a lower score would suggest links to illicit addresses. Authorities could set thresholds for AML triggers, with banks, exchanges, or stablecoin issuers applying the rules at off ramps.
See: UK FCA Plans Full Crypto Licensing Regime by 2026
This scoring model could range from strict to permissive. A strict version would only allow coins from verified 'okay listed wallets'. A permissive version would block only those funds that have touched 'not okay listed addresses'. Intermediate models could combine multiple criteria, such as recent wallet history, periods of holding on allow listed addresses, or interaction with suspicious protocols.
This approach aligns with the Financial Action Task Force’s travel rule guidance for virtual assets and VASPs and complements Canada's domestic efforts by FINTRAC to strengthen monitoring of crypto transactions. By integrating compliance scores at conversion points, Canadian exchanges and banks could reduce risk while supporting innovation.
There are also implications for monetary policy and sovereignty. The BIS notes that widespread cross border use of stablecoins can undermine local regulations. Differentiating coins based on where they come from could help Canada maintain stronger controls over its financial system. In practice, clean stablecoins could trade at a premium over those with a questionable history, creating incentives for compliance.
Building a Duty of Care Culture
If compliance scores were the standard, all ecosystem participants from retail wallet holders to major exchanges would need to exercise a duty of care. That alone could spur growth of third party compliance services as the market moves to support cleaner transactions.
See: OSC Crypto Trading Platform Compliance Review Findings
Compliance scoring would increase new technical requirements for fintechs while opening the door for services and tools that help users assess risk. As Canadian and global regulators weigh next steps in crypto regulation, the BIS compliance scoring model offers an approach that combines blockchain transparency with regulatory safeguards. NCFA members can stay ahead of these changes by subscribing to the weekly NCFA newsletter for updates on compliance, policy, and fintech innovation.
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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FCA Outlines Governance for Open Banking Standards Body
Open Banking | Aug 13, 2025
Image: Freepik
FCA Releases Governance Plan for UK’s new Industry-led Open Banking Standards Body
On August 8, 2025, the UK’s Financial Conduct Authority (FCA) published its FS25/4 feedback statement outlining the governance framework for a new Future Entity to oversee the open banking standards in the UK. The plan details how the Future Entity will be funded, governed, and held accountable. It will be industry led and operated, not a government agency, but will function under the FCA’s oversight. For Canada, the model demonstrates how industry expertise can be combined with regulatory accountability to support innovation and trust.
From Temporary Oversight to a Permanent Industry Framework
Since 2017, open banking in the UK has been run by Open Banking Limited, a government run entity created by the UK’s Competition and Markets Authority (CMA) to deliver its order requiring the nine largest banks to create interoperable APIs. Known earlier as the Open Banking Implementation Entity (OBIE), it was a time limited role to boost competition in banking, and not designed to be a permanent governance model.
See: Open Banking Delayed But Back in the Legislative Radar
The FCA’s plan replaces OBIE with the Future Entity, which will have a long term, industry wide mandate. This change moves open banking oversight from a CMA specific enforcement body to an independent standards setter governed under the Data (Use and Access) Act 2025. This legal framework means the Future Entity can later expand into open finance and other areas of data portability.
Industry led with Regulator Oversight
The Future Entity will be a not for profit company limited by guarantee, funded by contributions from its users and beneficiaries including banks, fintechs, and other participants. Its board will be appointed by an independent appointments committee, not directly by the government or the FCA. The FCA will regulate it as an interface body under the Data (Use and Access) Act, but will not manage its day to day operations. This allows industry to lead on technical standards while the FCA can intervene if those standards do not protect consumers or the market.
The governance approach is similar to a self regulatory organisation (SRO). It is run by industry, sets technical and operational API standards, and monitors compliance. Like an SRO, it will send reports to the regulator. The key difference is that the Future Entity will not have enforcement powers. All formal enforcement remains with the FCA. This keeps legal authority with the regulator while allowing the industry to deliver the technical work.
Read: Global Open Finance Lessons for Canada’s Rulebook
Commercial operators will use the Future Entity’s standards to create products and services to meet interoperability while leaving space for competition and innovation. The Future Entity itself will only operate directly if there is no commercial incentive or there is a proven market failure.
Industry participants are already working on variable recurring payments for uses such as bill payments, which is planned for 2025. The FCA will hold workshops this summer and fall 2025 to finalize operational details, with a full plan expected by the end of the year.
Why This Matters for Open Banking in Canada
Canada currently has no permanent open banking standards body. The UK approach shows how Canada could move a temporary regulatory order to a more permanent industry led framework without losing accountability or slowing progress.
An industry led and funded non-profit organization, supported by contributions from all users and beneficiaries, can create shared responsibility and boost financial sustainability. With an SRO style approach, industry leads on technical delivery while the regulator retains enforcement powers, can speed innovation while protecting consumers and market stability.
See: DPI Digital Finance Works. Why Is Canada Still Waiting?
Important to keep the standards setting body separate from commercial operators to streamline interoperability and ensure a level playing field (reducing risk of favouritism towards certain providers). Applying these principles from the start could help Canada avoid disruptive governance changes later and build a system that supports both innovation and public trust. Learn more about Canada's open banking journey.
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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