Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Digital Identity, Privacy, KYC, AML/ATF
Overcoming KYC: How Nodeless is Simplifying Bitcoin Transactions for Merchants
Decrypt | Alyssa Hertig | Jun 26, 2023
Nodeless, a new revolutionary platform in the Bitcoin ecosystem, is making waves for its innovative approach to facilitating transactions on the Bitcoin Lightning Network enabling merchants to accept Bitcoin payments in a seamless manner, distinguishing itself as a non-KYC service that prioritizes privacy and efficiency.
- Canadian fintech company: The platform's name, 'Nodeless', originates from its unique operating model. In a typical Lightning Network setup, users must run their own Lightning node, a process that can be challenging for non-technical users or those strapped for resources. Nodeless simplifies this process by taking over the role of the node operator.
- When a payment is made, it is sent to Nodeless, which then promptly forwards the payment to the merchant’s designated Bitcoin address. This approach enables merchants to accept payments without the need for technical knowledge or the responsibility of running a node.
- While Nodeless does technically hold the user's funds briefly during the transaction process, the platform is committed to forwarding these funds quickly to the user's Lightning or Bitcoin address, resulting in a streamlined payment experience.
See: Payments without banks goes mainstream with Twitter on Bitcoin Lightning Network
- A key differentiator for Nodeless is its non-KYC (Know Your Customer) stance. Unlike traditional financial institutions and many digital payment providers, Nodeless does not require users to share identifying information to begin accepting payments. This feature has sparked interest among merchants and users looking for increased privacy in their transactions.
- However, this business model has raised some eyebrows.
- Critics argue that as Nodeless grows, it may face increasing regulatory scrutiny, particularly around its non-KYC policy and its centralized control over transactions.
- Despite these concerns, Nodeless remains optimistic, operating legally under Canadian laws where transactions under $1,000 do not require KYC identification. The company is also considering a move to El Salvador, a country known for its welcoming attitude towards Bitcoin and cryptocurrencies.
- Outlook: Nodeless is offering a novel approach to Bitcoin Lightning payments that could reshape the way merchants and users interact with Bitcoin. By simplifying the payment process and prioritizing user privacy, Nodeless is paving the way for broader adoption of Bitcoin as a medium of exchange. While regulatory hurdles may lie ahead, the platform's innovative model has the potential to significantly impact the Bitcoin ecosystem.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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IMF Working on Global CBDC Platform to Revolutionize Global Remittances and Trade
Reuters | Ahmed Eljechtimi | Jun 19, 2022
Image: John Harrington
The International Monetary Fund (IMF) is developing a platform for central bank digital currencies (CBDCs), aiming for global interoperability and efficiency in cross-border transactions.
- CBDCs, being government-issued and having a fixed value equal to the country's fiat currency, provide a stable means of exchanging digital assets, unlike the volatile cryptocurrency market. The platform is designed to support efficiency, transparency, and interoperability of settlements, which could help enable countries to transact with one another more fairly and efficiently.
- Note, there are significant privacy-related and other risks with CBDCs, you can read here.
- This move by the IMF signifies a major step towards the digitization of currencies on a global scale.
- It could revolutionize international trade and financial transactions, making them more efficient and cost-effective. For businesses, this means the potential for smoother, quicker, and cheaper international transactions, possibly opening up new markets and opportunities.
See: Ottawa to review Crypto, Stablecoins and CBDCs; Budget promises more financial cops
- Financial Inclusion and Cost Reduction
- CBDCs could promote financial inclusion by providing access to financial services at a lower cost. The adoption of CBDCs can lower costs for those sending remittances and reduce settlement and counterparty risks for banks in cross-border transactions thus boosting profitability with the average cost of money transfers standing at 6.3%, amounting to $44 billion annually.
- For businesses, this could mean access to a wider customer base, particularly in developing markets.
- Global Adoption and Governance Challenges
- Already, 114 countries representing more than 95% of global GDP are exploring CBDCs, with 60 in an advanced phase of development, pilot, or launch. However, if poorly designed, CBDCs could lead to financial stability risks, data privacy and legal challenges, financial integrity and cyber risks, and central bank operational risks. The implementation of CBDCs, especially the legal underpinnings and governance arrangements, is complex and challenging.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Unveiling the CBDC Human Rights Tracker at the Oslo Freedom Forum
Cointelegraph | Derek Andersen | Jun 14, 2023
Image: CBDC Tracker
The Human Rights Foundation (HRF), a pro-Bitcoin nonprofit, has initiated an 8-month fellowship to develop a Central Bank Digital Currency (CBDC) tracker.
- This online tool will track the progress of CBDCs globally and will highlight potential risks to civil liberties, especially in authoritarian regimes.
- This project results from concerns that CBDCs, by creating a direct link between citizens and central banks, could open the door to human rights concerns. The tool will be interactive, allowing visitors to explore the progress and potential civil liberties risks of CBDCs in each country.
- The CBDC tracker project is an outcome of a fellowship granted to policy analysts from the Cato Institute and other researchers.
- The tool will be used as a resource for policymakers, journalists, and activists worldwide.
- The project fellows are tasked with the development and management of the tool, with all content being approved by HRF's policy team. The tool will continue to be updated on a quarterly basis even after the completion of the fellowship, to keep track of the evolving landscape of CBDCs.
See: Digital Canadian Dollar: The Required Steps for Canada
- As of June 2023, the CBDC tracker website has announced that a new resource dedicated to tracking CBDC development and its relation to violations of civil liberties and human rights will be unveiled in November 2023. This indicates the ongoing development and future expansion of the tracker's capabilities.
The first phase of the @HRF CBDC Tracker is now live!
Just announced at the Oslo Freedom Forum, the full resource will be unveiled at the end of the year.
For now, check out the landing page (phase 1) here: https://t.co/OrZ2fNfy7l pic.twitter.com/FHB9DWXDqs
— Nick Anthony (@EconWithNick) June 13, 2023
View the 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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The Formation of the Canadian Digital Regulators Forum and its Impact on the Digital Economy and Consumer Privacy
Competition Bureau of Canada | Release | Jun 9, 2023
Image: Unsplash/Gabriel Gusmao
Canada's leading regulatory authorities, the Competition Bureau, the Canadian Radio-television and Telecommunications Commission (CRTC), and the Office of the Privacy Commissioner (OPC), have united to form the Canadian Digital Regulators Forum.
The initiative aims to amplify information exchange, research, and collaborative efforts on digital market issues such as artificial intelligence and data portability. This forum is set to bolster consumer protection in the digital economy and help Canadians harness emerging technological opportunities.
🔍Key Takeaways:
- The forum is a joint venture aimed at fostering collaboration and information sharing between the Competition Bureau, CRTC, and OPC.
- It aims to develop a comprehensive understanding of emerging digital issues.
- The focus is on ensuring consumer protection and leveraging emerging digital technologies.
Matthew Boswell, Commissioner of Competition, Competition Bureau:
“This partnership represents a fantastic opportunity for the Bureau to strengthen its relationships with the OPC and CRTC and develop a holistic understanding of emerging digital issues. I am excited to see what comes of this Forum.”
See: ISED Launches Competition Act Review: Consultation on the Future of Competition Policy in Canada
Philippe Dufresne, Privacy Commissioner of Canada, OPC:
"To best serve Canadians in today’s fast-evolving digital economy, it is critical that regulators collaborate across intersecting spheres. This forum will build on one another’s knowledge and expertise and I look forward to working with my colleagues to ensure that we leverage the benefits of emerging digital technologies to support a vibrant digital economy where the fundamental right to privacy is promoted and respected."
View the original release --> here
Read the terms of reference of the Canadian Digital Regulators Forum --> here
#CanadianDigitalRegulatorsForum #CompetitionBureau #CRTC #OPC #DigitalEconomy #ConsumerProtection #DataPortability #AI #Canada
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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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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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Sam Altman’s Worldcoin is Making Waves with Iris-Scanning Tech for Orb Operators
Fortune Crypto | Ben Weiss | May 15, 2023
OpenAI's CEO Sam Altman is nearing $100 million in funding for his cryptocurrency project, Worldcoin.
- Worldcoin's Unique Approach to Identity Verification: Spearheaded by Sam Altman, the ambitious Worldcoin project integrates an innovative iris scanning technology for human identity verification, making it stand out in the burgeoning crypto marketplace.
- Public Launch and Wallet Application:
- With the planned public launch in H1 2023, the Worldcoin project aims to make a splash in the crypto world.
- The recent release of World App, a crypto wallet supporting major cryptocurrencies such as Bitcoin, Ethereum, and of course Worldcoin, paves the way for a smooth user onboarding experience.
- Investment: Despite a sharp drop in crypto venture funding from 2022 to 2023, Worldcoin stands as a beacon of optimism in the sector, attracting a total of $100 million in funding from new and prior backers, including a16z crypto and Khosla Ventures.
See: Digital Identity Protection is Critical for Metaverse Innovation
- The project's documentation says:
- "It is core to the mission of Worldcoin that the network is not built and run by a single entity, but instead by entrepreneurial individuals all around the world who apply to receive an Orb to run independent operations in their communities.
- We call these individuals Orb Operators and give them the autonomy to build their operations from the ground up, doing everything from running their own marketing campaigns to collaborating with local partners."
- "Worldcoin was conceived from the belief that universal basic income (UBI) will play a crucial role in the future, and gaining access to the internet economy will grow increasingly vital, as articulated by CEO Alex Blania to TechCrunch.
- This outlook, shared by Blania and Sam Altman, implies a future where automation displaces conventional jobs, leading to a uniform financial status for all, regardless of individual aptitudes, abilities, interests, and knowledge.
- While this concept is intriguing, it suggests a future where financial equality might overshadow personal uniqueness and expertise."
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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Bank of Canada Announces Consultations for a Potential Canadian Digital Dollar (Until Jun 19)
Bank of Canada | Release | May 8, 2023
Join the Conversation: Bank of Canada Seeks Public Input on Potential Features of Digital Canadian Dollar
- The Bank of Canada is seeking to design a digital Canadian dollar that caters to the needs of Canadians. To achieve this, the Bank is conducting an online consultation to gather input from the public. The Bank is particularly interested in understanding which features are most important to Canadians, including their opinions on related topics such as the usage of the digital currency, necessary security features, and concerns related to accessibility and privacy.
- how people would likely use it
- what security features are important
- what concerns you have about accessibility and privacy
See: Digital Canadian Dollar: The Required Steps for Canada
- While the Bank of Canada plans to continue providing bank notes for those who prefer them, it's possible that bank notes may become less common in day-to-day transactions in the future.
- This could potentially exclude some Canadians from participating in the economy.
- Additionally, the widespread use of private cryptocurrencies or central bank digital currencies issued by other countries could threaten the stability of Canada's financial system and the role of the Canadian dollar.
- To counteract these potential issues, the Bank is exploring the possibility of issuing a digital Canadian dollar, which would offer Canadians an official, secure, and stable digital payment option.
- If a digital Canadian dollar is issued in the future, the Bank will continue to provide bank notes for those who want them. Cash isn’t going anywhere. At this time, a digital Canadian dollar is not needed. And any decision to issue one rests with Parliament and the Government of Canada.
- The Bank plans to release a report summarizing the results of the ongoing consultation later this year.
- The following link to the consultation page can be embedded in your stories: https://bit.ly/429uV0M.
See: Digital Dollar and Tensions Over Transaction-Monitoring
- For more information on the Bank of Canada’s work on a digital Canadian dollar, see https://www.bankofcanada.ca/digitaldollar/.
- The public consultation will be accessible on the Bank’s website until June 19, 2023, at 23:59 Pacific time.
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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