Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Fintech International
Manumint’s Hand-Mined Proof of Work Cryptocurrency
Crypto | April 22, 2025
Image from Manumint Release April 15, 2025
Manumint’s Manual Proof of Workmanship vs. Algorithms
On April 15 2025, Manumint announced the world's first 'hand-minded' cryptocurrency. The coin isn't produced with computers and energy-hungry servers but actual people working with pen and paper to solve cryptographic problems.
According to press release, Manumint employs people to solve complex math problems by hand to create digital coins, highlighting that the process is slow and labour intensive and designed to make the coins seem rare but the physical work appears real, raising concerns about the working conditions, although the full context isn't disclosed.
At NCFA Canada, we try our best to report on and present both sides of the innovation coin to inform and guide industry stakeholders, but on the surface the Manumint model raises questions about whether manual work is being used to create a sense of rarity and to support potential price speculation.
See: Canada’s AI Competition Report Faces Big Tech Challenges
A word of caution to consumers and investors alike, it's always good to know where, how and why a particular product/service is being produced to ensure it aligns with responsible innovation and ones ethical perspective.
How the Sector Should Be Building
Canada’s fintech sector must lead with a positive purpose bound by ethics, inclusion, integrity, and trust. It means building tools that help people access credit, manage risk, and grow wealth in ways that are fair and transparent. It means protecting personal data and designing systems where people stay in control of their financial information. It means using AI to support human judgment and making sure algorithms are transparent, can be explained and challenged. Real innovation focuses on solving problems. It invites trust by showing clearly how it works, who it helps, and who is accountable. Real innovation solves real problems and strengthens markets.
See: Data Shows Tariffs Are Threatening Early Stage Innovation
Responsible fintechs build tools and data-driven systems that are fair, transparent, and worth believing in and using. While the future of finance will be digital, it must also be accountable to the high standards that progressive, modern societies deserve.
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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Perplexity’s Security Flaws A Red Flag for Industry
AI Security | April 22, 2025
Image: Freepik/atlascompany
Why Perplexity's App Flaws Should Alarm Anyone Building with AI
Perplexity AI is growing fast with over 10 million Android downloads and is backed by tech royalty like Jeff Bezos but a new security report by a Singapore security firm AppKnox found major vulnerabilities that could be exploited by attackers. We're not talking small potatoes here. We're talking about huge issues like hardcoded API keys and significant weaknesses against any sort of malicious hacking.
See: Perplexity AI Sued for Copyright Infringement
While Perplexity's android app isn't what most fintechs run their AI service on, it's a red flag about the state of security in the quickly evolving world of artificial intelligence tools that banks, wealthtech platforms, and credit unions are exploring, embedding, investing and integrating in..
What Appknox Found in Perplexity’s Android App
Perplexity’s Android app includes private access keys that should not be exposed. These keys work like internal passwords and were stored inside the app itself. This makes it easy for anyone with technical skills to find and misuse them. These hardcoded credentials could be downloaded and used to access Perplexity's AI full system completely for free.
Another serious problem is that the app does not check if it is connecting to a real or fake server. Cybernews reports that someone on public WiFi could take advantage of this to spy on what users are doing. This might include watching what they search, type, or log in to.
The app has not fixed several known security flaws that have existed in Android for years, such as StrandHogg and Janus are still present. These are weaknesses that hackers already understand and can use to gain control or access private information.
Perplexity's app doesn't check if a phone is rooted or not, and it's less secure if it is.
The app’s code is also not protected. This means someone could open it up, look inside, and understand exactly how it works. They could then use this to find more vulnerabilities to attack or copy its features.
See: Why No Code AI Agents Matter for Fintech in Canada
The app can be tricked into letting attackers control parts of the screen without the user knowing. So, you could be typing into a pop-up form or something that looks familiar but it's actually a trap that can steal your information.
Implications Even If You Don’t Use the App
How is it possible that a high profile AI unicorn like Perplexity ships a mobile app that fails basic security checks? If they are missing the basics, how many others are? This raises a critical question for fintechs and financial institutions looking to integrate AI whether it's a chatbot, SDK, API, or embedded assistants.
Are you checking how secure your vendors really are?
It's a reality check that a soaring valuation doesn’t guarantee strong engineering discipline.
Some Security Questions You Should Be Asking
Where are the API keys stored? If they live in the mobile app code, that’s a no-go.
Does the vendor use SSL validation and pinning? If not, data can be intercepted over public WiFi.
Are known vulnerabilities patched? Run a third party scan or ask for one.
See: Is AI Going to Change Fintech Security?
Is the code protected? If it’s not, attackers can easily reverse-engineer how it works.
Does the app detect rooted or jailbroken devices? If not, it might be operating in a compromised environment.
What’s the vendor’s breach response plan? Ask how they handle disclosures, patches, and updates.
How much access are you really giving? Use API scopes, rate limits, and narrow permissions by default.
Conclusion - You Don’t Have to Use the App to Learn from It
Perplexity's Android app glaring security risks is a textbook example of what happens when security gets left behind in a rush to launch/scale products out the door. Don't ever forget that financial data isn't forgiving when it leaks. Whether you're exploring AI for customer support, product recommendations, or internal workflows, you need to prioritize the app and API security for your use case. Trust is earned but it can be lost in a heart beat.
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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Meta Faces U.S. and Canadian Legal Pressure
Antitrust | April 21, 2025
Image: Freepik/upklyak
Meta Faces U.S. Monopoly Trial and Rising Global Scrutiny
The U.S. Federal Trade Commission (FTC) first sued Facebook (now called Meta Platforms Inc.) in December 2020, claiming it broke competition laws by buying Instagram and WhatsApp to suppress competition and maintain a monopoly in personal social media markets. The case was renewed in 2021 with more evidence and the trial started on April 14, 2025, with Mark Zuckerberg already on the stand in the U.S. District Court for the District of Columbia.
The FTC argues Meta bought Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014 in what they call a 'buy or bury' strategy to dominate the market, which it now controls -see FTC opening statement slides:
- 78% of monthly active users (MAUs)
- 77% of daily active users (DAUs)
- 85% of total user time spent on social platforms in the U.S.
See: Meta to Appeal €798M EU Fine for Antitrust Violations
During the trial, FTC presented internal messages/texts in 2012 from CEO Mark Zuckerberg, saying:
“It is better to buy than compete.”
The FTC now seeks a court order that could force Meta to breaking-up or divesting Instagram and WhatsApp entirely.
Meta Says Not a Monopoly, Just Competition
On April 13, 2025 in an official Meta blog post, Meta’s Chief Legal Officer Jennifer Newstead says that the FTCs case is 'weak' and that the lawsuit is wrong, saying it ignores how competitive the tech space has become. She argues that platforms like TikTok, YouTube, Snapchat and others fiercely compete for users' time and attention and that the FTC is using a narrow definition for personal social networking. She continues to say that Instagram and WhatsApp grew under Facebook/Meta's ownership because of the investments in safety, encryption, and performance.
Canadian Legal Action Against Meta
While Canada has not filed a federal antitrust lawsuit like the FTC, there are a number of legal and regulatory actions against Meta including:
1. Canada passed the Online News Act (Bill C-18) in June 2023 to help struggling news publishers that required big tech platforms like Meta to pay Canadian outlets when they share or link to their news. The expectation is that platforms like Meta and Google are to contribute at least $100 million CAD annually to support the sustainability of the Canadian news industry. Meta responded by blocking all Canadian news content from Facebook (now Meta) and Instagram feeds. So in response, News Media Canada and CBC filed a complaint with the Competition Bureau, arguing that Meta’s move was anti-competitive and harmful to the public, which the Bureau is currently investigating.
See: Implications of Meta’s Fact-Checking Exit
2. In 2024, four Ontario school boards sued Meta, TikTok’s parent ByteDance, and Snapchat’s owner Snap Inc., asking for over $4 billion CAD in damages. They claim the platforms were designed to be addictive, harming students mental health and learning. The companies tried to get the case thrown out but an Ontario judge ruled that the case proceed which now has expanded to 14 school boards. The boards say they've had to spend more funding on mental health and classroom supports because of social media's impact, and want the platforms redesigned to reduce harm to students.
3. In 2024, Canada passed the Digital Services Tax Act, introducing a 3% tax on revenue earned in Canada by large global tech companies like Meta. It applies to companies with more than €750 million in global revenue and at least C$20 million in Canadian digital revenue. The first payments are due by June 30, 2025. The tax was delayed for years during global talks but Canada moved ahead after little progress. Meta opposes the digital services tax, and it's not a secret that President Trump dislikes the tax too, and we can expect it to be raised when renegotiating the Canada-United-States-Mexico-Agreement (CUSMA) trade agreement. Revenue collection is proceeding with its first collection in 2025.
Implications for Fintechs and Investors
We're at a regulatory turning point against big tech. From Washington to Ottawa, digital platform dominance is in the spotlight. The outcome of Meta's trial, as well as Canada's legal pressures could lead to new enforcement models, investment opportunities, and an increase in competition in areas that have been long dominated by Big Tech.
See: Meta’s Vision to Swarm Facebook With AI Users
Also, smaller firms operating in AI, digital media, and user engagement platforms may find that regulators are more willing to intervene or step in/up if complaints are made.
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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Google’s Ad Tech Monopoly Ruled Illegal by U.S. Court
Antitrust | April 21, 2025
Image: Freepik/fabrikasimf
Google Hit With Second Antitrust Ruling as Court Calls Out Monopoly
On April 17, 2025, a federal judge ruled that key parts of Google's digital advertising ecosystem is a monopoly and it broke antitrust laws. It's the second time in less than a year that Google has been found guilty of abusing market power. The case was led by the U.S. Department of Justice (DOJ) and was backed by 17 states.
Judge Leonie Brinkema ruled (115 page PDF)that the company “willfully engaged” in tactics that harmed competition and distorted prices in a way that left publishers and consumers worse off while strengthening Google's dominance. Could this result in a court ordered break-up of Google's advertising tech empire?
How Google Controls the Ad Market
The case focused on how Google linked its publisher ad server (DFP) with its ad exchange (AdX), tools used by websites to sell advertising. The court found that its an unfair combination that Google could control and steer traffic away from competitors, giving it monopolistic control over the ad ecosystem.
See: Canada Sues Google Over Anti-Competitive Ad Practices
By 2022, Google held over 90% of the publisher ad server market and between 55-65% of the ad exchange space. In Q4 2024, its advertising business brought in $72.5 billion or 75% of Alphabet's total revenue (see Alphabet's Q4 2024 Earnings). These are astonishing figures and akin to how the internet is monetized.
So Now What?
The court has ordered both parties to schedule a hearing to submit potential remedies to resolve Google's antitrust case, including ordering the break-up and divestiture of AdX and DFP. The outcome will likely change how digital ads are bought and sold on the internet.
CNN article says Google will appeal. “We won half of this case and we will appeal the other half,” said Lee-Anne Mulholland, Google’s VP of regulatory affairs.
Not Google's Only Battle
Last August 2024, a separate court ruled that Google illegally monopolized search by paying Apple over $10 billion a year to be the default engine on iPhones. The DOJ reportedly wants Google to sell Chrome and potentially it's Android operating system.
Google is also facing broad existential threats from the rise of generative AI platforms like OpenAI's ChatGPT that are upending traditional search by fundamentally changing how people access information.
Let's not forget the added pressures that President Trump' sweeping tariffs on global tech are having on Google's revenue growth. Combined, Google's dominance is now in flux with Alphabet's stock falling more than 1% after the latest ruling and down 20% year to date.
What This Means for Canada
Canada’s Competition Bureau is watching closely, and in November 2024 filed its own antitrust suit against Google, claiming the company used similar tactics in Canada’s digital advertising market.
See: Trump’s Inauguration Marks New Chapter for Tech Giants
According to Commissioner Matthew Boswell, Google’s ad tech practices prioritized its own products in ad space auctions and restricted publishers from working freely with other platforms. Similar to the U.S. case, Canada seeks a forced sale of ad tech tools, financial penalties, and an end to exclusionary behaviour.
If the Tribunal agrees, Google could face fines up to 3% of its global revenues ~$12 billion CAD. These cases can take several years to conclude but Canadian regulators have been building their case for almost a decade, and the U.S. ruling may accelerate momentum, as it provides a strong legal precedent.
One Tech Giant Wobbling. Who’s Next?
U.S. regulators are not just going after Google but also currently pursuing Meta, Amazon and Apple for various antitrust violations.
Apr 2025: Meta for acquiring Instagram and WhatsApp to eliminate rivals.
Mar 2024: Apple for using the iPhone ecosystem to block competitors in messaging, digital wallets, and more.
Nov 2023: Amazon for allegedly punishing third party sellers and distorting its own marketplace.
Conclusion
Big Tech is being forced to answer how it gained and uses power, with Google now on the chopping block who may now face a court ordered breakup. Canada and other countries are following, so this antitrust case isn't about one company but a movement and will impact who controls the infrastructure of the internet.
TedX: This is what a digital coup looks like
It doesn't matter if you're in advertising or not. It affects anyone who uses the internet and the outcome will change how online markets work, who gets to participate and compete and the future of digital power.
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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Stablecoin Payments Have Wings – Are You Ready?
Stablecoins | April 17, 2025
Image: Freepik/creativeart
With 40M+ Active Wallets and Stripe Joining In, Stablecoins Are the New Rails
Stablecoins are gaining traction and are no longer a niche bet. According to Stripe’s 2024 Annual Letter, the number of monthly active stablecoin wallets tripled to 40 million over the past year. Stripe has now successfully integrated stablecoin capabilities into its core platform by the acquisition of Bridge, an enterprise grade stablecoin infrastructure provider (like Swift but on blockchain and faster) focused on real-time treasury and cross-border flows.
See: Stablecoins Are Growing Faster Than You Think
Stripe co-founders, Patrick and John Collison see stablecoins as improving the usability of money that can lead to more prosperous economies by enabling faster, cheaper, and more accessible transactions. An evolutionary and historical shift like the move from gold to fiat currency.
“Improvements to the basic usability of money make economies more prosperous. Consider the transitions from coins to banknotes, from the gold standard to fiat currency, and from paper instruments to electronic payments. Stablecoins are a new branch of the money tree. Such transitions occur with some regularity over the centuries, and the effects tend to be large.”
a16z just shared 'Stablecoins are payments without intermediaries', highlighting that stablecoins managed over $15.6 trillion of on-chain volume in 2024, which is essentially the same as Visa's annual volume, but it's growing and accelerating.
Stablecoins are no longer an experiment and have become part of core infrastructure. Stripe uses them for real time settlements and lower cross border costs. Over 78% of the Forbes AI 50 use Stripe products, so stablecoin transactions could scale massively quickly.
The Case for Enterprise Adoption Is Now Clear
For any fintechs or financial institutions still relying on multi-day SWIFT transfers or batch ACH systems - it's time to take notice. Stablecoins offer instant settlement, programmable logic, and almost zero fees.
There's no waiting for banking hours or regional cutoffs. Stablecoin availability is open 24/7. The average transaction costs on networks like Solana are less than $0.01. Stablecoin transactions can finalize in under 5 seconds.
Stablecoins like USDC are designed to be composable, so they integrate seamlessly with numerous smart contracts and decentralized applications. Financial tools can now be built directly on-chain using smart contracts and stablecoin flows.
See: GPR 2025 Shows Rise of Wallets BNPL and Real-Time Payments
That's why stablecoins are already being used for payroll (e.g., pay overseas contractors), international business payments, and even on-chain stable yield strategies.
Stripe’s 2024 update, reports that stablecoin integration is already being used in many practical ways, such as SpaceX uses Stripe's stablecoin infrastructure to repatriate funds from Starlink sales in countries like Argentina and Nigeria. The U.S. government uses Stripe's stablecoin solutions to improve efficiencies of financial operations.
Growing Global Impact
There are several real world economic cases where countries are relying on stablecoins.
Argentina for example, experienced a massive spike in annual inflation of 211.4% in 2023, which pushed many to hedge against inflation by moving funds to stablecoins like USDT and USDC.
Nigeria uses stablecoins to send funds across borders due to the inefficiencies and high costs involved with traditional remittance methods, making global transfers more affordable.
In the Philippines, a stablecoin called PHPC (pegged to the Philippine peso) is used to reduce exchange rates and transfer costs for Filipino expats sending money home to families.
Why This Matters for Canada’s Fintech Ecosystem
If Canada wants to compete in global finance, we can’t ignore what’s happening at the infrastructure level. Major tech platforms like Stripe are integrating stablecoins into programmable finance. Startups are now choosing stablecoin rails to access global markets from day one. Canada has been working to modernize it's payment infrastructure and real time rails for years but the tech overhaul has been delayed over years, and even the Bank of Canada is disappointed by the progress rate.
See: 2024 Global Payments Growth, Trends, and Fintech’s Edge
Fintechs and financial institutions should be evaluating the growing use cases of stablecoins such as cross border treasury flows, global payroll, and embedded payments. They should track the developments in upcoming stablecoin regulations, such as Canada's Retail Payment Activities Act, the U.S. efforts, the UK, and European crypto guidelines. They can begin compliance planning and readiness efforts for stablecoin transaction and consider partnering with infrastructure providers offering compliant stablecoin APIs.
Conclusion
Stablecoins have gone mainstream and are now core infrastructure settling in seconds for less than a penny, and running 24/7. Stripe, SpaceX, governments, and individuals and companies globally are using them for faster, cheaper payments. If you're still relying only on traditional payment rails, it's time to evaluate stablecoin use cases and get ready to plug into the new financial internet.
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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Join EasyA x Consensus Hackathon in Toronto | May 14–16 🚀
Consensus | April 16, 2025
Calling All Builders, Creators & Big Thinkers! Pitch. Build. Win. Get Spotted.
We’re excited to share an incredible opportunity for NCFA members and the fintech community! EasyA, one of the fastest-growing UK-based EdTech apps, is teaming up with Consensus to host an awesome hackathon + pitch competition from May 14–16 in Toronto.
5 Top Reasons to Join the EasyA Consensus Toronto Hackathon
1. Millions in prize money is up for grabs💰
2. No coding experience needed as great ideas, presentation skills, and hustle are just as valuable
3. Network with VCs, founders, and tech leaders
See: Win Free Tickets to Consensus 2025! NCFA Pitch the Future Contest
4. Free ticket(s) to Consensus 2025 (yes, where Kevin O'Leary and other unicorn founders will speak)
5. Past participants have been backed by Y Combinator, a16z etc
Whether you’re a student, founder, creative, or fintech aficionado, this is your opportunity to connect and build the next big thing. Don’t miss out check out the highlight video from the last one!
👉 Register by April 27 to Get Guaranteed Access here
Want to join a team? Contact NCFA and let us know you want to participate (info@ncfacanada.org)
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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Does CUSMA Support Fintech Services Across Borders?
CUSMA | April 16, 2025
Image: Freepik/rawpixel.com
Fintechs and Digital Finance Firms Can Still Scale in the U.S. and Mexico
If you’re building a fintech company in Canada, there’s a good chance you’ve thought about scaling into the U.S. or Mexico. But no doubt rising trade tensions and ever evolving regulations can raise questions about CUSMAs current status for financial technology service providers.
Earlier this month, President Trump introduced wide sweeping tariffs (he referred to as 'Liberation Day') on imports from more than 180 countries. Canada and Mexico were largely exempt (for now) thanks to the Canada-United States-Mexico Agreement (CUSMA/USMCA), which replaced the North American Free Trade Agreement (NAFTA) in 2020.
See: Digital Export Trends and Global Trade Fintech Opportunities
CUSMA includes specific rules that make it easier for digital finance providers to operate across borders. Whether you're running a payments platform or a digital lending service, CUSMA could already be working in your favour.
What Fintechs Need to Know About CUSMA
Chapter 17 – Financial Services
If you operate a regulated fintech like one that moves money, offers loans, or handles investments then Chapter 17 – Financial Services is what applies to you. It helps you access the U.S. and Mexico markets but doesn’t fully protect you from things like local data rules, and applies to financial services such as:
- Digital banking and payments
- Lending, insurance, or wealth management
- Embedded finance products tied to licensed providers
See: Overcoming Barriers to Growth in Financial Regulation
Chapter 17 legally ensures market access and fair treatment but it doesn't stop governments from requiring certain data to be stored locally. So if you're offering regulated cross border services, your operations could still face compliance hurdles around data infrastructure.
Chapter 19 – Digital Trade
If your business focuses on digital tools that support, but don’t directly provide financial services, then you might fall under Chapter 19 - Digital Trade. Chapter 19 lays out stronger protections for items like cross-border data flows and electronic transactions but it doesn’t apply to regulated financial services. Some business model examples that may qualify under Chapter 19 include:
- Digital contracting or e-signature platforms used in financial workflows, such as mortgage pre-approvals or investment account setup
- Financial literacy and education platforms that help users understand credit, debt, or budgeting without offering licensed advice or handling money
- Tax prep or compliance reminder tools that provide content or automation but don’t process payments or require regulatory oversight
See: Insights from Jamie Dimon’s 2024 Letter to Shareholders
If you’re unsure where your business fits, it’s advised to contact your export trading representative or if you need help with CUSMA compliance you can contact CanadExport CUSMA compliance support line at 1‑833‑760‑1167. Alternatively, it's worth getting legal advice to help classify your service correctly to avoid unnecessary risks under CUSMA protections.
What About the New U.S. Tariffs?
During March and April of 2025, the U.S. government announced tariffs on over 180 countries, igniting global trade anxiety. Canada and Mexico were mostly exempt but only for products and services that are compliant with CUSMA (not for sectors like Steel and energy), and the pressure has forced Ottawa and allies to diversify supply chains to protect economic sovereignty.
After speaking with President Trump, Prime Minister Mark Carney called the old U.S.–Canada trade relationship “over” and is now pushing for a broad renegotiation of CUSMA and defence security to reflect Canada’s modern priorities. He announced a 25% retaliatory tariff on U.S. autos that do not meet CUSMA standards, further escalating pressure around trade terms.
See: Carney Shakes Up Leadership and Vows to Protect Canada
For financial technology firms, the current economic environment is volatile with new tariff threats being contemplated by the Trump administration day by day, so stay current with evolving trade rules and do not assume that rules of 2020 still protect your business in the say way in 2025.
Why It Matters
For Canadian fintechs still looking to scale into the U.S. or Mexico, CUSMA still provides a foundation to operate if you know how to use it. Make sure you understand the classification of your business and revenue exposure across borders. This is a time of rising trade barriers, so any clarity around CUSMA could be a competitive advantage to support your growth.
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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