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
EU Lawmakers Approve Historic AI Regulation Act
Regulation | March 13, 2024
Image: Freepik/Rawpixel.com
EU Parliament Enacts First Major AI Regulation Globally
The European Parliament has approved the world's first comprehensive set of regulations to govern artificial intelligence (AI), setting a global standard for the ethical and safe development of AI technologies. This pioneering legislation, known as the AI Act, categorizes AI systems based on their risk levels and introduces stringent controls to mitigate potential harms, aiming to balance innovation with citizen protection.
- The legislation, endorsed by 523 votes in favor (46 against), reflects a strong consensus on the need for regulation. It was developed in response to citizens' proposals and aims to protect democracy, the rule of law, and environmental sustainability while positioning Europe as a leader in ethical AI innovation.
- The AI Act addresses a wide array of AI applications, imposing bans on systems that pose threats to citizens' rights, such as untargeted facial recognition and emotion recognition in schools and workplaces. It also sets clear obligations for high-risk AI systems in critical sectors, ensuring transparency, accuracy, and human oversight.
See: Regulating AI in Canada: The Proposed AI and Data Act (Bill C-27)
- Recent updates to the Act include provisions for generative AI models like ChatGPT, requiring developers to disclose training data summaries and comply with EU copyright laws. These models face additional scrutiny due to their potential systemic risks.
- The AI Act is expected to serve as a model for other countries grappling with AI regulation. It will officially become law by mid-2024, with phased implementation for its various provisions. Each EU country will establish an AI watchdog for enforcement, with violations attracting fines up to €35 million or 7% of global revenue.
Dragos Tudorache, co-leader of the Parliament negotiations:
"The AI Act nudges the future of AI in a direction where humans are in control."
Brando Benifei, co-leader of Parliament's work on the law:
"This isn't Brussels' last word on AI rules. More AI-related legislation could be ahead."
Outlook
The EU's Artificial Intelligence Act is a huge step forward in the global discourse on technology regulation, emphasizing the need for a balanced approach that protects citizens while promoting innovation.
See: Comparing Global Regulatory AI Strategies
As the first comprehensive legislation of its kind, it could inspire similar regulatory efforts worldwide, ensuring that AI development aligns with human rights, safety, and ethical standards. The Act's successful implementation will be closely watched as a potential blueprint for future technology governance, highlighting the EU's role as a leader in digital ethics and 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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Sam Altman’s Wisdom for Entrepreneurs and Innovators
Innovation Insights | March 12, 2024
Image: Freepik/rawpixel
Key Lessons from Sam Altman's Startup Playbook
Sam Altman, a luminary in the tech industry and driving force behind OpenAI, recently published pearls of wisdom that every entrepreneur should be aware of as they live and breath their journey of innovation in a post titled, "What I Wish Someone Had Told Me" and published on his blog. Here, we distill Altman's insights into a blueprint for success, tailored for the vibrant community of NCFA Canada.
1. The Foundation of Success
At the heart of every groundbreaking venture lies a blend of optimism, obsession, self-belief, and the raw horsepower to drive ideas forward. Altman emphasizes the critical role of personal connections in catalyzing initiatives. These elements are not just the starting blocks but the fuel that keeps the entrepreneurial spirit burning brightly against the backdrop of uncertainty and challenge.
Optimism, obsession, self-belief, raw horsepower and personal connections are how things get started.
2. The Art of Execution
The journey from an idea to a fully realized product or service is fraught with hurdles. Altman points out that cohesive teams, a balanced approach of calmness and urgency, and an "unreasonable" commitment are the cornerstones of crossing the finish line. He champions a long-term orientation, advising entrepreneurs to remain unfazed by short-term critiques and to focus on what truly matters.
Outcomes are what count; don’t let good process excuse bad results.
3. Motivation and Incentives
Understanding and strategically setting incentives can significantly amplify a team's output and dedication. Altman encourages concentrating resources on a handful of high-conviction bets, underscoring the often-underestimated power of saying "no" to diluting efforts across too many fronts.
Incentives are superpowers; set them carefully.
4. Communication and Bureaucracy
In the quest to build and scale, clear and concise communication emerges as a non-negotiable. Altman's disdain for bureaucracy and inefficiency serves as a reminder to constantly seek and destroy anything that hampers agility and progress.
Fight bullshit and bureaucracy every time you see it and get other people to fight it too. Do not let the org chart get in the way of people working productively together.
5. The Importance of People
"Superstars" in a team can have an exponential impact on an organization's success. Altman advises investing significant time in recruiting and betting on individuals not just with stellar intellect but with a proven track record of getting things done. This approach to team composition can be a game-changer.
Superstars are even more valuable than they seem, but you have to evaluate people on their net impact on the performance of the organization.
See: Fintech Fridays EP44: The Vanguard of Digital Innovation and Ecosystems in Canada
6. Execution and Adaptability
Rapid iteration and the willingness to pivot based on feedback and results are highlighted as critical to the entrepreneurial process. Altman's philosophy of planning for decades but executing in weeks encapsulates the essence of agility in today's fast-paced market environments.
Plans should be measured in decades, execution should be measured in weeks.
6. Inspiration and Scaling
Finally, Altman touches on the ephemeral nature of inspiration and the dangers of inaction. He notes the "magic" of compounding exponentials and the surprising benefits that scaling can bring, encouraging entrepreneurs to persevere through the ups and downs.
Compounding exponentials are magic. In particular, you really want to build a business that gets a compounding advantage with scale.
Conclusion
This blueprint is not just a guide but a call to action for all of us in the entrepreneurial and fintech space to dream big, act boldly, and create the future we envision.
See: Tony Robbins: Who Are You in Business? Producer? Manager? Entrepreneur?
Together, lets take these insights to heart by applying them to our ventures and the broader ecosystem, driving forward with resilience, innovation, and an unwavering commitment to making a difference.
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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Chris Woolard’s Insights 1 Year After 2023’s Banking Turmoil
Banking Insights | March 7, 2024
Image from Christopher Woolard's Linkedin profile
Reflecting on the Banking Sector's Resilience and Regulatory Evolution
A year after the Spring 2023 banking turmoil, triggered by the failures of major institutions like Credit Suisse and three US regional banks has set the stage for a significant supervisory shift. With the Basel 3 Reforms at the forefront, financial institutions worldwide are implementing stronger capitalization and more rigorous risk management practices to ensure stability and resilience of the global banking system. In this LinkedIn pulse article, Christopher Woolard, Partner at EY, EMEIA lead financial services regulation, Chair EY Global Regulatory Network, sheds light on regulatory trends that every financial institution should be aware of.
Select Quotes and What It Means for Fintechs and Investors
"Almost a year has passed since the financial markets’ volatility was triggered by the failures of Credit Suisse and three US regional banks."
This quote highlights the interconnectedness of global financial markets and the domino effect that the failure of significant institutions can have. For fintechs, it underscores the importance of robust risk management and the need for a contingency plan. Investors should be aware of the systemic risks and consider the stability of the financial institutions within their portfolios.
"Implementation of the final part of the Basel framework, Basel 3 Reforms, updated in light of the 2007–08 global financial crisis, will be key to ensuring banks are well capitalized."
The Basel 3 Reforms represent a comprehensive set of regulatory standards designed to strengthen the regulation, supervision, and risk management within the banking sector. For fintechs, especially those in lending, payments, and regulatory technology (RegTech), this quote underscores the importance of aligning with or facilitating compliance with these enhanced capital requirements.
See: KOHO’s Strategic Push Towards A Banking License
It signals a need for innovative solutions that can help banks meet these standards efficiently. For investors, the implementation of Basel 3 Reforms is a critical factor in assessing the risk profile and stability of banks. Investments in banks that are proactive in adopting these reforms may be seen as more secure, given their strengthened capital positions and reduced risk of failure. This focus is on capitalization to ensure financial institutions are more capable of withstanding future financial stresses.
"Supervisors are increasingly acting on previous warnings and action points asked of their supervised firms, closely monitoring banks’ efforts to remediate known risk management weaknesses."
This quote suggests a shift towards more proactive and stringent regulatory oversight. Fintechs should anticipate and prepare for increased scrutiny, particularly in areas of risk management and compliance. For investors, this could mean that banks and financial institutions are becoming safer investment options, albeit possibly facing higher compliance costs.
"The 2023 banking turmoil showed that central bank support is crucial during a bank run."
The role of central banks in providing liquidity support during crises is crucial. Fintechs, especially those in the payments and lending spaces, should consider the implications of central bank policies on their operations and liquidity management strategies. Investors might see central bank readiness to support the banking sector as a safety net that mitigates some of the risks associated with bank runs.
See: From Collapse to Reinvention: The Emergence of a Decentralized Crypto Banking Ecosystem
"The European Banking Authority (EBA) Chair Campa echoed the growing regulatory concerns of the linkages between banks and the non-banking financial institutions (NBFIs), including hedge funds, private equity, and cryptocurrencies."
This highlights the growing importance of NBFIs and the crypto sector in the broader financial ecosystem. Fintechs operating in or with these sectors should be mindful of the evolving regulatory landscape and its implications for their business models. Investors should consider the potential for regulatory changes to impact the valuation and risk profile of their investments in these areas.
Why It Matters
The events of Spring 2023 serve as a crucial reminder of the interconnectedness of global financial systems and the importance of robust regulatory frameworks. The focus on implementing Basel 3 Reforms and enhancing liquidity risk management practices is to safeguard financial system against future crises.
See: Open Banking Insights: Decoding Canada’s Financial Future
Understanding these events helps stakeholders prepare for future challenges, ensuring a more resilience banking sector against unforeseen crises.
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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United Efforts to Expand Access to Private Markets
Advocacy | March 5, 2024
Image: Crowdfund Insider, SBCFAC meeting Feb 27, 2024
SBCFAC, SBIA, Peirce, and Uyeda Push for Inclusive Accredited Investor Criteria
As featured by Crowdfund Insider, the Securities and Exchange Commission's (SEC) Small Business Capital Formation Advisory Committee (SBCFAC), the Small Business Investor Alliance (SBIA), Commissioner Hester M. Peirce, and Commissioner Mark T. Uyeda have collectively voiced strong opposition to the current restrictive wealth thresholds for accredited investors. Advocating for a more inclusive definition, these entities and individuals are against raising the current wealth thresholds for accredited investors, and are aiming to lower the barriers to investment opportunities, emphasizing the importance of knowledge, risk awareness, and the potential for broader economic participation over financial benchmarks alone.
- On February 27, 2024, the Securities and Exchange Commission's (SEC) Small Business Capital Formation Advisory Committee (SBCFAC) met and voiced strong concern against raising the wealth thresholds for accredited investors. This recommendation aims to keep the door open for a broader spectrum of investors to participate in private securities offerings, challenging the traditional wealth-based criteria. The committee's approach reflects a shift towards inclusivity and opportunity in the investment landscape, emphasizing the importance of knowledge and risk awareness over mere financial benchmarks.
See: AOIP Advocates for Enhanced Capital Formation and Investment Opportunities for SMEs
- Prior to the SBCFAC meeting, the SBIA submitted a comment letter advocating for the expansion of the accredited investor definition to include more individuals based on understanding risks and rewards, rather than just wealth metrics.
- Commissioner Peirce highlighted the importance of not restricting Americans from investing in private markets, noting the potential devastating impact on local angel networks and the broader principle of individual freedom to invest.
- Commissioner Uyeda suggested a more nuanced approach to the accredited investor definition, proposing investment caps based on a percentage of an individual's securities investments, promoting a more inclusive and flexible framework.
Why It Matters
The collaborative push by the SBCFAC, SBIA, and Commissioners Peirce and Uyeda to expand the definition of accredited investors challenges the traditional wealth-based criteria, aiming to open up new avenues for wealth accumulation among a broader group of investors, reduce economic inequality, and provide early-stage companies with a wider pool of potential backers. This initiative reflects a shift towards a more democratic financial system.
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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Investors Launch Argo Digital Gold to Tokenize Gold
Investing | March 4, 2024
Image: Freepik/lcd2020
Sprott Family and Peter Grosskopf Announce the Founding of Argo Digital Gold Ltd.
The Sprott Family, alongside Peter Grosskopf and a skilled management team led by Michael Petch, have announced the founding of Argo Digital Gold Ltd. This is an exciting development in the world of precious metals. The innovative platform is set to offer secure, digital access to physical gold in a way that fuses traditional assets with modern technology.
The platform's vision extends beyond mere trading; it aims to be at the forefront of crypto-to-gold transactions and the asset tokenization of gold. This approach not only promises to enhance the liquidity and accessibility of gold but also to unlock new use cases for this $5 trillion industry. By leveraging asset tokenization, Argo can fractionalize gold ownership, allowing investors to trade and store gold with greater flexibility and efficiency.
- Scheduled for launch in Q2 2024, Argo aims to provide a suite of benefits previously unseen in the precious metals market.
- Among these are enhanced security measures for gold storage and custody, the convenience of 24/7 trading, the flexibility of fractional ownership, and a commitment to low, transparent fees.
- Argo has chosen the Royal Canadian Mint as the initial custodian for the gold purchased on its platform, with plans to expand to other secure vaults globally.
See: Crypto Banking Crisis Props Hard Assets as Tokenized Diamond Sales Surge
- Backing this ambitious project are the Sprott family and Peter Grosskopf, whose names are synonymous with expertise and trust in precious metals investing. Their combined decades of experience and innovative leadership in the gold market have been instrumental in the multi-billion-dollar growth of global alternative investments focused on precious metals.
- Michael Petch, the President of Argo Digital Gold, brings a wealth of experience in digital assets and blockchain technology to the venture. His track record includes launching the CoinShares Gold and Cryptoassets Index (CGCI) and one of the first gold-backed stablecoins (DGLD) in Switzerland. Under his leadership, Argo is poised to drive significant digital innovation in the ownership of physical precious metals assets.
Peter Grosskopf, Chairman of Argo Digital Gold:
"Gold is the original alternative asset, and we believe that precious metals should continue to anchor a diverse portfolio of alternative investments. We are embracing new technologies which allow investors to store and trade gold outside of the financial system it is designed to hedge against. The vision of Argo is to offer institutional-grade direct ownership to all investors in a safe, and technologically enhanced manner."
Outlook
Argo's mission is to democratize gold investing, making it more accessible to a broader, tech-savvy audience while maintaining the trust and security that investors expect from physical gold.
See: Citi’s PoC Success in Private Market Tokenization
As we await the launch of Argo, it's pretty clear that this platform is set to play a key role in the future of gold investment by bridging the gap between traditional precious metals and the digital age.
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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Conservative Backlash Leads to DEI Retreat on Wall Street
DEI | March 4, 2024
Image: Freepik/rawpixel.com
Wall Street Pulls Back on DEI Initiatives Due to Growing Conservative Backlash and Internal Pressures
Wall Street has begun to quietly pull back from its Diversity, Equity, and Inclusion (DEI) commitments, marking a corporate shift in America's approach to diversity. This retreat is attributed to a growing conservative backlash and internal pressures, leading to a reevaluation of DEI strategies across major financial institutions.
- Goldman Sachs has notably opened its "Possibilities Summit" for Black college students to White students, reflecting a broader trend of inclusivity. Similarly, Bank of America and Bank of New York Mellon are rethinking their DEI-focused programs and diversity metrics, respectively, under legal advisories to avoid accusations of reverse discrimination.
- The retreat is partly in response to legal challenges and the potential for lawsuits alleging reverse discrimination. This cautious approach follows the U.S. Supreme Court's rejection of affirmative action in colleges, fueling concerns over corporate diversity initiatives' legality. There's an undercurrent of resentment among some White employees, contributing to the reassessment of DEI efforts. This internal pushback is a quiet yet significant force influencing corporate decisions.
See: Fast Company Survey Finds Capitalism at Crossroads
- Despite efforts to improve diversity, the representation of Black senior executives in major banks like Goldman Sachs (3.7%), JPMorgan Chase (5%), and Citigroup (8.7%) remains low compared to their overall U.S. population percentage (about 14%).
- While public declarations remain supportive of DEI, internal adjustments suggest that companies are reworking recruitment programs and reviewing diversity targets to address the evolving legal and social landscape.
Why It Matters
This shift in Wall Street's DEI approach signals a broader reevaluation of corporate diversity strategies amidst changing legal interpretations and societal attitudes. The retreat from previously ambitious DEI commitments reflects the complex interplay between legal risks, internal dynamics, and external pressures.
See: McKinsey Report: Diversity in Global Private Markets 2022 and Institutional Investors as Catalysts for Change
The future of workplace diversity and inclusion efforts remains uncertain. There's a need for a balanced approach that addresses legal concerns while striving for genuine inclusivity.
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’s Lagging AI Adoption Needs to Accelerate to Compete
AI | Feb 29, 2024
Image: Unsplash/Matteo Vistocco
Canada's tech sector voices concern over slow AI adoption, risking its global AI leadership status
Canada's reputation as a frontrunner in artificial intelligence (AI) is under threat due to its sluggish pace in adopting AI technologies, according to voices within the country's tech community. At the MaRS Impact AI conference in Toronto, experts discussed the critical need for Canada to embrace AI more rapidly to sustain its position as a leader in this innovative field. Krista Jones, Chief Delivery Officer at MaRS Discovery District, highlighted the slow adoption of Canadian-made AI technologies as a significant challenge, potentially jeopardizing Canada's leadership in AI. Note, Canada ranked 5th on last year's Global AI Index and Deloitte reported that there were 670 Canadian AI startups with good potential.
See: How AI is Shaping the Future of Financial Services in Canada
- A KPMG study revealed that only 35% of Canadian companies had adopted AI by last February, compared to 72% of U.S. businesses, underscoring the urgency for Canada to close this gap.
- Canadian companies face several obstacles in embracing AI, including funding shortages, risk aversion, and a lack of clear starting points for implementing AI technologies.
- Catherine Fortin LeFaivre from the Canadian Chamber of Commerce advocates for starting with small, manageable AI applications to overcome the paralysis caused by aiming for large-scale AI strategies.
- Tomi Poutanen, head of AI health company Signal 1, pointed out the difficulties in AI adoption within healthcare due to regulatory hurdles and funding constraints, emphasizing the need for innovation-friendly policies.
- Elissa Strome of the Canadian Institute for Advanced Research called for government action as procurers or first customers of AI technologies and suggested incentives for domestic companies purchasing Canadian AI to stimulate the local market.
Why It Matters
The urgency for Canada to enhance its AI adoption is about securing a future where innovation, economic growth, and societal well-being are intrinsically linked to technological advancement. Canada's ability to keep pace will determine its role on the global stage, impacting everything from job creation to healthcare, and beyond. As Canada faces the risk of falling behind, the call to action is clear: embrace AI more broadly and swiftly, or risk losing its esteemed position on the global AI stage.
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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