Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Enterprise, Scaleup
Crypto.com Canada Gains Canadian Regulatory Approval
Crypto | May 15, 2025
Image from Crypto.com Canada website
Crypto.com Canada Receives Restricted Dealer Registration to Continue Serving Customers
On May 12, 2025, Crypto.com Canada announced that on May 8 they received a restricted dealer registration across all Canadian provinces and territories, allowing the platform to continue offering crypto asset products and services while it works toward full investment dealer registration and CIRO membership.
This regulatory milestone aligns with Crypto.com’s earlier commitment to the Canadian Securities Administrators and Ontario Securities Commission in August 2022, when it became the first crypto trading platform to sign a Pre-registration Undertaking (PRU). The PRU was created to provide a temporary path for firms to continue operations while meeting Canada’s robust regulatory standards.
See: Stablecoin Payments Have Wings – Are You Ready?
Eric Anziani, President and Chief Operating Officer at Crypto.com:
“We have strong protocols for our Canadian operations which were put in place or strengthened during the course of the registration process and are designed to enhance the protection of our customers and their asset. We have invested heavily in our compliance infrastructure around the world, and specifically in relation to Canada, because we want our customers to have greater peace of mind knowing that they are dealing with a regulated firm in Canada.”
Crypto.com Custody Trust Company (chartered trust company licensed in New Hampshire) will be the primary digital asset custodian for Canadian clients.
According to Joe Anzures, President of the custody unit, “Crypto.com Custody Trust Company looks forward to providing secure custody services to the Canadian market and to registered cryptocurrency trading platforms who will operate in accordance with the high standards established by Canadian securities regulators.”
See: Robinhood Acquires WonderFi for C$250M
Crypto.com’s Canadian registration adds to a growing global portfolio of licenses including:
- MiCA license in the European Union
- Money Transmitter Licenses (MTLs) in multiple U.S. states
- Designated Contracts Market (DCM) and Derivatives Clearing Organization (DCO) status in the U.S.
- Major Payment Institution (MPI) license in Singapore
- Electronic Money Institution (EMI) license in the UK
- Virtual Asset Service Provider (VASP) license in Dubai
Outlook
Crypto.com’s restricted dealer registration highlights regulatory progress and a maturing market in Canada’s crypto sector. As more platforms become licensed and registered to operate in Canada both retail and institutional clients will benefit from more competition and improved confidence and safeguards. It also shows that top global crypto players are willing to meet Canada's high compliance standards, if there is a clear path to registration and market opportunities.
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
 |  |  |
|---|---|---|
 |  |  |
Payoneer Seeking A Buyer As It Suspends Its 2025 Financial Guidance
May 15, 2025
Payoneer, a global company specializing in cross-border transactions for small to medium businesses, is reportedly seeking a buyer. This comes after it suspended its already issued full-year 2025 guidance.
This also comes at a very interesting time, given that fintech and global payment processing are more in demand than ever before. Take the world of gambling, for example. In the past, payment options for online gambling were quite limited, and consumers were left in a tough spot. Now, these online casinos offer a myriad of payment methods, and this has only drawn in more customers. As Alex Hoffmann writes, many of the apps for seamless gaming for gambling lovers also come with multiple fintech-enabled payment methods.
The Woes of Payoneer?
Payoneer seems to be facing issues behind the scenes that critics and customers are struggling to make sense of. On the one hand, its Q1 report shows a valuation of five cents per share, which is significantly less than the nine cents per share that analysts had predicted. But on the other hand, its revenue rose by 8% to $246.6 million, which was higher than analysts' initial predictions.
Despite this, the company announced that it would be suspending its full-year 2025 guidance.
“There are a broad range of potential outcomes and as a company supporting cross-border businesses that may be negatively impacted, we face substantial risks which could impact our financial results,” said Bea Ordonez, Payoneer’s CFO, noting the decision.
But the real scandal seems to be Payoneer's decision to seek an acquisition. According to some executives who chose not to identify themselves, the company is looking for a buyer and has hired a financial advisor to this effect.
Payoneer So Far
So far, Payoneer has had quite the journey. It was first formed in 2005 and has become one of the most popular online payment processors with over 2 million customers. Back in 2021, it joined the likes of MoneyLion, another payment processor, which merged with a special purpose acquisition company, or SPAC, to secure public valuation. This is often seen as an easier path compared to traditional IPOs. Money Lion has also sought an acquisition and was sold to Gen Digital last year for roughly a billion dollars. Now, Payoneer is looking to do the same. It is worth noting that it will probably receive a higher buyout price, given that it was valued at $2.89 billion just recently. Even with this, it is roughly a 30% decline from its initial $3.3 billion valuation when it first merged in 2021.
See: Robinhood Acquires WonderFi for C$250M
Fintech companies overall have seen a complex and often unforgiving market, and so, 2025 will be a fight for Payoneer's long-term survival. The fintech market is projected to expand over the next few years, but that also means more competition compared to 2005, when the company first started.
Its PR team has refused to confirm or deny any of the speculation, but as time goes on, the true situation at Payoneer should come to light.
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
| | |
|---|---|---|
| | |
Fintechs Face Rising SaaS Security Risks, JPMorgan CISO
Cybersecurity | May 14, 2025
Image: Freepik/DC Studio
Third-party Integration Flaws Are Exposing Fintechs to Spreading Attacks
Patrick Opet, JPMorgan Chase’s Chief Information Security Officer, has dropped a rare public warning that the modern SaaS (Software-as-a-service) model is enabling cyberattacks and embedding systemic risk into the global economy. His message is that the security architecture is breaking down, and software providers are not doing enough to fix it. Below are some urgent quotes from his discourse and why they matter for Canadian fintechs, investors, and regulators.
5 Select Quotes From Opet's Letter
1. “SaaS has become the default... embedding concentration risk into global critical infrastructure.”
Many fintechs are using the same core SaaS vendors for payments, data, and automation, exposing them to a single point of failure. If one of these vendors is compromised, the effects can spread fast like wild fire on a dry summer's night. For fintech startups, the risks may be inherited without full visibility.
See: India Biometric Data Breach Highlights Cybersecurity Risks
2. “Over the past three years, our third-party providers experienced a number of incidents... requiring us to act swiftly and decisively.”
Canadian fintechs with lean security teams need contingency plans for third party supplier compromise and must monitoring vendor behaviour or risk the full wrath of a serious attack that will disrupt operations, result in data theft or leakage, fraud and financial loss, regulatory and legal exposure, reputational damage and even cascading or 'fourth party' risks. Even a global bank must isolate vendors during incidents. Read OSFI's Guidance here: Third-Party Risk Management Guideline.
3. “Fierce competition among software providers has driven prioritization of rapid feature development over robust security.”
Security is often sacrificed for speed. Fintechs should require vendors to provide (1) strong and secure default settings, (2) regular third-party audits, and proof or evidence of strong internal security programs such as SOC 2 Type II or ISO/IEC 27001 certification.
See: Perplexity’s Security Flaws A Red Flag for Industry
4. “Modern integration patterns dismantle essential boundaries... relying on overly simplified interactions between third-party services and firms’ sensitive internal resources.”
OAuth tokens and API integrations are often misused, allowing third and unwanted parties to access internal systems. Without strong segmentation and logging, attackers can move quickly once access is gained. Microsoft Threat Intelligence recently confirmed state actors are now targeting common SaaS apps to infiltrate customers.
5. “The most effective way to begin change is to reject these integration models without better solutions.”
Canadian fintechs should ensure procurement policies require secure integration design, advanced authorization models, and greater transparency from vendors. Startups should reference the Canadian Center for Cybersecurity Top 10 IT Security Actions for implementation guidance.
What This Means for Canadian Fintechs
SaaS brought convenience and speed but also concentrated risk across fintech infrastructure. For smaller Canadian firms who often lack internal security engineering, the consequences of a poorly or unsecured SaaS integration can be severe. This warning should not be ignored.
See: New Cyber Threats Financial Service Firms Need to Know
Fintech leaders should:
- Audit all third-party SaaS integrations especially those with read or write access to sensitive systems. The CSA's Staff Notice 33-321 offers baseline expectations for registrants
- Require vendors to support multi-factor authentication, token expiration, and role-based access controls
- Push for data residency transparency and vendor dependency disclosures, including fourth-party services
- Include security breach notification clauses in service agreements
- Explore secure options such as customer-managed encryption keys, confidential computing, and bring your own cloud models
Final Thought
OSFI and the CSA have made it clear that third party oversight is now a priority, so fintechs can expect questions on cybersecurity controls and operational resilience during regular reviews. SaaS is here to stay but without stronger default security and safer integrations and oversight, it'll remain a growing liability.
See: Can Cloned Voices Crack Bank Security? Need to Know
Fintech startups and scale-ups cannot rely on vendors to lead. Security must be a shared responsibility across the ecosystem, and it begins with better architecture, more transparency, and smarter procurement.
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
| | |
|---|---|---|
| | |
Robinhood Acquires WonderFi for C$250M
Crypto M&A | May 13, 2025
Image from announcement Roinhood to acquire WonderFi
Robinhood Enters Canada Through Regulated Crypto Channels
Robinhood Crypto announced on May 13 that it will acquire Canadian fintech WonderFi Technologies for C$250 million (US$179 million) in an all-cash deal, giving it immediate access to Canada’s regulated crypto trading market.
WonderFi shareholders will receive C$0.36 per share in cash, reflecting a 41% premium to the May 12 closing price and a 71% premium to the 30-day volume weighted average.
See: WonderFi Faces Leadership Challenge in Boardroom Battle
The purchase includes WonderFi’s flagship platforms, Bitbuy and Coinsquare, which combined hold over C$2.1 billion in assets under custody and offer crypto trading, staking, and custody services to millions of Canadian users.
The deal is structured as an arrangement under the BC Business Corporations Act and is expected to close in the second half of 2025, subject to court, regulatory, and shareholder approvals.
Johann Kerbrat, Senior Vice President and GM of Robinhood Crypto:
“WonderFi has built a formidable family of brands serving beginner and advanced crypto users alike, making them an ideal partner to accelerate Robinhood’s mission in Canada.”
Ahead of launching or acquiring a crypto trading platform in Canada, Robinhood opened a Toronto headquarters office in 2024 with 140+ staff focused on infrastructure engineering. The WonderFi acquisition allows Robinhood to offer crypto products in a regulated market while positioning for broader retail expansion.
See: Robinhood Acquires AI Platform Pluto Capital Inc
Dean Skurka CEO of WonderFi:
“WonderFi and Robinhood are united in our visions of making crypto accessible and bringing more people into the crypto space.”
Why It Matters
Could Robinhood's acquisition of WonderFi ignite more cross border fintech consolidation in Canada? It will definitely bring more competition to Canadian fintech markets, as the deal injects global capital into the sector, establishing the bar for product, pricing, and platform innovation to crypto, digital banks, wealthtech and lifestyle finance platforms in Canada.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
DeFi Technologies Begins Nasdaq Trading in Global Expansion
Crypto | May 12, 2025
Image: Freepik/tonodiaz
DeFi Technologies Now Trading on Nasdaq and Cboe Canada
DeFi Technologies Inc. (Nasdaq: DEFT) announced that they officially began trading on the Nasdaq capital markets today May 12, 2025 via press release. This ends its previous listing on OTC markets under symbol DEFTF and its Nasdaq uplisting is a significant upgrade in visibility, credibility, and access to institutional investors. DeFi Technologies will keep its listing active on Cboe Canada (CBOE CA: DEFI) and Börse Frankfurt (GR: R9B). The company did not raise any new capital as part of the listing and held C$61.9 million (US$44.7 million) in cash and digital assets as of April 30, 2025.
See: DeFi Technologies Eyes Nasdaq Listing and Global Expansion
Olivier Roussy Newton, CEO of DeFi Technologies:
“This Nasdaq listing marks a historic moment—not just for DeFi Technologies, but for the broader digital asset industry.”
DeFi Technologies offers equity investors regulated access to decentralized finance through the various platforms it owns or has a majority stake in:
- Valour Inc. is a wholly owned subsidiary of DeFi Technologies, specializing in issuing exchange-traded products (ETPs) that provide investors with exposure to digital assets like Bitcoin and Ethereum.
- Stillman Digital, a digital asset liquidity provider, was acquired by DeFi Technologies in October 2024.
- In March 2025, DeFi Technologies increased its stake in Neuronomics AG to a 52.5% majority shareholder, a Swiss asset management firm specializing in AI quantitative trading strategies.
See: Crypto Enters the Core of Canadian Payments
- DeFi Alpha which is an internal business line of DeFi Technologies, operating a proprietary trading desk focused on low risk arbitrage opportunities across digital asset markets.
Cboe Canada’s Growing Crypto Role
DeFi Technologies will remain listed on Cboe Canada (formally NEO), a Tier 1 Canadian exchange, which now facilitates about 15% of all daily trading volume for Canadian-listed securities and is a key venue for crypto related ETFs. Some recent crypto listings on Cboe Canada include:
- iShares Bitcoin ETF (IBIT) from BlackRock Canada
- Global X Bitcoin Covered Call ETFs (BCCC, BCCL)
- Harvest HBIX and HBTE, focused on monthly income
These funds make it easier for Canadian investors to access digital asset markets through regulated and transparent instruments.
Why It Matters
DeFi Technologies’ dual presence on Nasdaq and Cboe Canada shows that global capital markets are adapting to decentralized finance. The company is allowing mainstream investors a gateway to digital asset exposure at scale.
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
| | |
|---|---|---|
| | |
Microsoft Blocks DeepSeek App for Employees Only
AI | May 9, 2025
Image: Freepik/iconicbestiary
Microsoft Blocks Employee Use of DeepSeek But Still Offers Its AI Model
On May 8, 2025 during a U.S. Senate testimony on 'Winning the AI Race', Microsoft Vice Chair Brad Smith said the company blocked employees from using the DeepSeek AI app because of the app’s data collection practices, risks of propaganda, and Chinese state censorship. Smith confirmed that DeepSeek “is not available on the Microsoft store” and cannot be used by staff. The full hearing coverage can be found at TechCrunch.
But at the same time Microsoft continues to offer DeepSeek’s open source AI models through its Azure cloud platform, raising questions for both the public and business users alike. According to Dataconomy, Microsoft claims that it has audited, changed, and sandboxed the models before release to remove parts they deem are risky or unsafe.
See: Fintech Leader Insights on DeepSeek’s AI Disruption
This mixed approach has raised some concerns since the AI model can be used by others without Microsoft's internal protections. Some smaller companies may also not have the tools or awareness to even evaluate these risks, whether they be related to security or reputation.
Why This Still Raises Red Flags
It's the same underlying tech. Even if Microsoft tweaks the model, the core code base still comes from DeepSeek, so any unknown, unspottable, or embedded risk could still be present.
The open source models that Microsoft offers via its Azure cloud platform, could have been adversely modified by bad actors for risks like surveillance, disinformation or phishing campaigns.
See: Waymo Plans to Train AI Using In-Car Camera Footage
It's a double standard for Microsoft to say it's unsafe for employees but okay for customers to use it. It sends a mixed message and in certain cases a reputational or regulatory risk could grow for companies that adopt it.
If governments and regulator tighten controls around AI supply chains, especially foreign ones from China, then companies could face compliance, or import/export restrictions in the the future. The State of New York has already banned DeepSeek on official devices earlier this year due to data privacy and censorship concerns.
Why It Matters
Fintechs and financial institutions need to verify AI model origins and audit what is under the hood, and understand how its being deployed while staying aware of compliance risks. Microsoft’s internal controls may reduce risk for its own teams, but the public and smaller firms are left more exposed.
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
| | |
|---|---|---|
| | |
Celsius Founder Sentenced to 12 Years for Crypto Fraud
Enforcement | May 9, 2025
Image: Freepik
Celsius Founder Alex Mashinsky Lied to Customers and Inflated His Company’s Token
Alex Mashinsky, Founder of the crypto lending platform Celsius, has been sentenced to 12 years in prison for defrauding customers and manipulating the price of his company’s digital token.
See: Unveiling the Celsius and 3 Arrows Capital implosions
According to a press release issued May 8, 2025 from the U.S. Department of Justice, Mashinsky promised people their money would be safe and earn high rewards on Celsius. However, courts found that instead he used customer deposits to make risky bets and secretly boost the price CEL, Celsius’s own token. At the company’s peak, Celsius held about $25 billion in customer assets. When Celsius collapsed in July 2022, around 600,000 customers lost access to $4.7 billion worth of crypto. The sentence came from a U.S. court after Mashinsky admitted in December 2024 that he committed fraud and misled investors.
Jay Clatyon, U.S. Attorney said:
“Mashinsky made tens of millions of dollars while his customers lost billions... The rules against fraud still apply.”
As reported by Reuters, Mashinsky also said publicly that he wasn’t selling CEL tokens, but in fact he was and made about $48 million in profit from doing so. Further, he took out $8 million of his own money just before the company blocked customer withdrawals. He told customers that Celsius was financially strong even that he knew it was failing.
See: Celsius Creditors to Return Funds Withdrawn Pre-Bankruptcy
In addition to 12 years prison time, Mashinsky must pay a fine and give up his profits from the token sales.
Conclusion
Crypto companies must follow the same rules as everyone else. Misleading customers and manipulating markets has serious consequences. As more and more people engage with digital assets, trust and transparency is critical for the future of finance.
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
| | |
|---|---|---|
| | |
