Cato Institute | Dec 9, 2021
Cryptocurrency regulation sits at the intersection of multiple regulatory regimes: financial markets regulators and banking regulators, among many others, have asserted authority over certain aspects of crypto regulation, which has resulted in an overlapping and incomplete regulatory framework that has drawn criticism from both proponents and skeptics of crypto innovation.
So, how is cryptocurrency regulated? How should it be regulated? Who should regulate it? Cato’s Center for Monetary and Financial Alternatives is looking at these questions with a series that examines the roles of different regulators and considers what type of regulatory framework should be adopted to balance the risks and innovative potential of cryptocurrencies.
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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Crowdfund Insider | | De 8, 2021
Earlier today (December 8, 2021), the House Financial Services Committee held a hearing on digital assets. As was previously reported, the witnesses included top crypto executives and thus provided the opportunity for a unique discussion between House members and crypto entrepreneurs.
Chairwoman of the Committee, Representative Maxine Waters started her questioning with a critical question about Facebook/Meta and its Novi wallet, asking Paxos CEO Charles Cascarilla how Meta’s attempt to create a digital currency will not challenge the US dollar. Paxos said that Meta came to them because they have the most regulated product referencing its dollar-based stablecoin. Cascarilla noted that the pilot was quite limited in size (US and Guatemala) and suggested a discussion with Novi would reveal more information as to the company’s intent to expand the digital wallet.
Ranking Republican Patrick McHenry used his time to focus on the need to enable Fintech innovation in the US instead of chasing crypto startups to other, more welcoming jurisdictions. “Policymakers need to understand the nature of Web 3,” said McHenry. Bitfury Group CEO Brian Brooks explained that Web 3 enables users the ability to own the network, and this is what crypto assets represent.
Regarding prepared remarks, Alesia Jeanne Haas, CEO of Coinbase Inc., and CFO, Coinbase Global Inc, said that crypto is opening up a new financial system. “[The] foundational benefit of crypto is that it allows for innovation of new financial and non-financial applications, like non-fungible art tokens (NFTs), that are controlled by the individual.”
Sam Bankman-Fried, co-founder and CEO of FTX, one of the top crypto exchanges in the world, shared that FTX is designed to empower the individual investor and consumer:
“…because we offer products that are easily accessible and inexpensive, so investors and consumers can make simplified choices to achieve their economic goals. Easy access to financial products all in one place, in many cases on a mobile phone, without multiple gatekeepers assessing rents and posing risks to the investor along the way, is how the digital asset ecosystem is impacting the real everyday lives of those involved, and helping them achieve economic security along the journey.”
He said that a supportive and accommodating policy environment will “only empower the individual investor even further.” Bankman-Fried added that he fully supports a regulatory framework that protects investors and ensures an orderly market to “maintain US leadership.”
For most of the hearing, many members were supportive of digital assets in general, with many advocating for clear-cut rules that do not exist today.
The platforms shared how they currently adhere to strict AML/KYC rules while working closely with authorities to uncover or halt any nefarious activity. Blockchain is a public ledger making it easy to trace transactions that may be illicit in nature – unlike cash.
Brooks said that the US needs to compete on features and utility, globally.
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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Forbes | | Dec 7, 2021
The current job market is so incredibly challenging that companies are forced to “compromise” on the quality of candidates just to get the help. To compound the problem, by bringing aboard people who don’t possess all of the needed skills and experiences, it holds business back, according to a new survey conducted by AI-powered, talent management platform Beamery.
The company’s Talent Trap Report surveyed business leaders and C-suite executives to learn their thoughts about the job market. The findings indicate the need for big changes to be enacted.
The Great Resignation movement and unrelenting battle over finding, attracting, recruiting and retaining workers has created chaos for businesses. The dilemma places hiring personnel in a bind. Brutal competition over talent leaves leadership with a difficult choice: wait and hope to find the perfect candidate or act quickly, scoop up a person who may lack critically needed skills and hope for the best.
This situation results in settling for less than desirable applicants. Consider a sports team— if you have the best athletes, you’ll win games. Fielding athletes with lesser talent isn’t a recipe for success. The only time this works out is in the movies, when the Bad News Bears, Mighty Ducks and Rocky (in later films) win.
Organizations need to manage staff that are not exactly what they need, while wrestling with keeping employees from walking out the door. The survey shows that around 83% of respondents fear losing talent, which could lead to corporate stagnation.
Abakar Saidov, Beamery cofounder and CEO, said, “Most organizations are feeling the frenzy to lock candidates in, but poor hiring decisions have the potential to seriously hold the business back in the long run.”
He added, “Today’s competitive climate demands that businesses are more deliberate and strategic in their approach to talent management. The expectations of top talent have changed on everything from flexible work to speed of decision making. Businesses need to become more agile and make changes using decisions informed by real-time talent data and insights.”
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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Reuters | Pete Schroeder and Katanga Johnson | Dec 8, 2021
WASHINGTON, Dec 8 (Reuters) - Top executives from six cryptocurrency firms told Congress on Wednesday to tread lightly in imposing new rules on digital assets - or risk sending activity underground or outside the United States.
At the hearing at the U.S. House Financial Services Committee, executives leading some of the world's biggest crypto companies indicated in prepared testimony they generally support clearer rules. But they emphasized that overly restrictive ones would not stifle the activity, but merely push it away from U.S. reach.
"Without tailored legislative solutions that are openly debated with public participation, the United States risks unnecessarily onerous and chilling laws and regulations," warned Alesia Haas, chief executive of Coinbase Inc, in testimony released on Tuesday. "This could effectively push crypto activity underground or to offshore exchanges that have little or no compliance programs."
Representative Maxine Waters, the Democrat who chairs the panel, said there are "several questions" about the need for new rules for crypto, and also highlighted concerns about significant energy usage to mine and trade cryptocurrency.
"Cryptocurrency markets have no overarching or centralized regulatory framework, leading investments in the digital assets space vulnerable to fraud, manipulation and abuse," she said.
To the contrary, Representative Patrick McHenry, the top Republican on the panel, urged lawmakers to seek ways to boost cryptocurrency with sufficient safeguards. "We should embrace it, we should understand it, and we should be international leaders in this space," he said.
Executives said they would welcome regulatory clarity, but that overly restrictive rules could prove counterproductive.
"Stablecoins and internet-native capital markets are not too big to fail, but they are now too big to ignore," said Jeremy Allaire, CEO of Circle Internet Financial. "Policy frameworks need to support an open and competitive playing field, and allow new technologies to flourish."
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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BBC | Dec 1, 2021
Executives of eight major cryptocurrency firms have been called to testify before a US congressional committee on 8 December. Witnesses called to appear include Coinbase's Alesia Haas, Circle's Jeremy Allaire and Bitfury's Brian Brooks.
It will be the first time companies representing the controversial sector have been questioned in this way.
US politicians across the political spectrum have called for more scrutiny of crypto-currencies.
Elizabeth Warren on the left of the Democratic Party has called for tougher regulation of the sector and Donald Trump has described crypto-currencies as "a scam".
Mr Brooks of Bitfury previously served as a top banking regulator under the Trump administration and had a role in policy-making around crypto-currencies.
Crypto-currencies are not currencies in the traditional sense, although they can sometimes be used to make payments. They are stored online in a "digital wallet" and act more like investment vehicles or securities, often with a high degree of volatility.
The anonymity of paying using crypto-currencies means they have been favoured for criminal activities such as drug dealing and ransomware attacks. However their supporters say the view that they are predominantly for circumventing the law is outdated and that innovation in this area offers huge potential.
Countries around the world have taken radically different approaches to crypto-currencies.
China has declared crypto-currency transactions illegal, a move India looks set to follow. Many other central banks are eyeing the sector warily and discussing regulation.
However El Salvador recently declared Bitcoin - the most widely established crypto-currency - to be legal tender and its president plans to build a Bitcoin city at the base of a volcano, with the cryptocurrency used to fund the project.
Across the US, as well as many private citizens holding crypto-currencies, states and municipalities have begun toying with plans to integrate them into their operations.
The mayor of Miami and mayor elect of New York have ambitions to make their cities centres for cryptocurrency business.
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 Economist | Nov 29, 2021
Source: JMManzanedo, Personal Artwork
THE RIVALRY between China and America will intensify in 2022 as each side strives to demonstrate the superiority of its system of government. As China uses its stage-managed Communist Party congress to cement Xi Jinping in power, Joe Biden and the Democratic Party are expected to face a drubbing in America’s mid-term elections.
Editor-in-Chief Zanny Minton Beddoes, US editor John Prideaux and host Tom Standage assess the competition between the two superpowers. Runtime: 22 min.
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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FGS | Surinderjit Kaur Bhatti | Nov 25, 2021
Challenger Banks are the players that offer digital-only alternatives to traditional financial institutions’ banking products and services. As per FGS database, there are 40 such players in Canada, and we categorize them into the following 4 categories based on the status of their banking license. Top players under each category include:
Over the years, these players have seen tremendous growth in their adoption through launch of innovative value propositions for Canadian consumers. Following are some of the recent trends seen in space:
While challenger bank for small and medium businesses was a white space for a very long time in Canada, this year we have seen four players enter the space - Carry, Float, Benji, Jeeves. While most of these solutions are in beta stage right now, they have amazing value propositions for Canadian SMEs like no fee, no personal guarantee corporate cards, unlimited one-time use virtual cards, one-click accounting sync and spend management.
While these are the solutions for small businesses, Moves is a player that has recently launched Moves Spending Account, a banking solution for gig workers. Uber, Lyft and DoorDash have also partnered with Payfare to offer instant payments to their gig workers through a prepaid card. Apart from these, there are expected launches of SME banking solutions in Canada from Shopify (Shopify Balance) and Quickbooks (Quickbooks Cash), which are live south of the border.
In the past couple of years, we have seen a new niche of challenger banks appear on the Canadian landscape - Challenger Bank for Kids/Teens. Treasure, Walo and Wingocard are some of the players in this space. RBC Ventures has also launched a kid banking app called Mydoh. These solutions not only enable parents to digitally give money to their children, they also help them to track children's spending, set tasks that need to be completed for earning allowance, and help kids learn about savings. While most of these apps are meant for kids and teens for earning allowance from their parents, we have seen a new player, SideKick, which is meant for international students in Canada. SideKick helps international students to receive money from their family in different currencies and enables spending in Canada through a prepaid card.
Challengers are innovating the rewards space which is no longer limited to the traditional loyalty programs. The new players are offering a range of reward options from cashbacks that are immediately accessible for spending to personalized discounts at a curated list of retailers. Mogo has given the rewards a completely different twist by offering a cashback in bitcoins. For every purchase through a Mogo account, you earn 1-2% bitcoin cashback which is accessible through Mogo’s bitcoin account (Mogo also has a bitcoin investing product). STACK has created a community called World Stream where STACK users can share their purchases and STACKHacks to earn best rewards and save money.
PC Financial, on the other hand, is staying strong on its loyalty program game through its PC Optimum points program. The program has more than 18 million members and is in fact the layer behind most of the Loblaw offerings - PC Money, Credit Cards, PC Health and beyond.
Additionally, challenger banks are enabling Canadians to better manage their finances by offering tools like automated savings, spending limits, sub-accounts for saving goals, transaction round-up savings and spending insights. Some of the players also offer credit score monitoring and building solutions. These use-cases will further grow with the advent of Open Banking in Canada as users would then be able to link all their accounts to a single app and get a full view of their financial standing which will enable informed financial decisions.
Non-banks are entering the financial space through the launch of ‘bank like’ solutions which are mainly enabled by a prepaid card. The categories of these non-bank players launching challenger banking solutions for their customers range from tech giants to e-commerce players to major retailers.
Prepaid enables these players to quickly enter the financial industry and start capturing the banking relationship of their customers with minimal regulatory requirements and skipping the need for getting a bank license. The non-bank players are thus able to not just offer an end-to-end experience to their customers but also capture their spending data which helps them to learn more about the consumer and further innovate to offer predictive services.
Surinderjit Kaur Bhatti, Co-CEO at FGS, is a FinTech expert with experience ranging from the venture capital world to leading an innovation lab of a financial institution to innovation consulting. At present, she is a leader at FinTech Growth Syndicate and helping Canadian Financial Institutions build their FinTech strategies through market intelligence services.
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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