Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Fundraising, Investing, Trading
Coinbase MiCA Licence Unlocks Europe Wide Crypto Access
Coinbase | June 25, 2025
Image: Freepik/macrovector
Coinbase’s EU Licence Highlights How Unified Crypto Rules Unlock Market Access (while Canada faces pressure to modernize)
Coinbase secures a Markets in Crypto Assets (MiCA) licence in Luxembourg and unlocks access to all 27 EU member states under one regulatory framework. The licence allows Coinbase to provide regulated custody, trading, and token services across Europe without reapplying in each country.
MiCA is the EU’s first unified crypto regulation. It sets common rules for disclosures, capital requirements, and consumer protection. Coinbase is among the first major global exchanges to receive full MiCA approval, joining a wave of early adopters now operating across the EU under a unified licence. Market wide compliance in the EU is now real, and opens up a single market of 450 million people under consistent regulatory oversight.
Canada’s Regulatory Challenge
Canada uses a mix of federal registration through FINTRAC and provincial securities oversight. While there is a securities passport system under the Canadian Securities Administrators (CSA), it's not uniformly applied across all provinces. Ontario, for example, requires dual filings. The system also does not unify crypto regulation or streamline compliance across federal and provincial levels.
See: U.S. Passes First Stablecoin Law with GENIUS Act
In contrast, MiCA offers a single licence with direct access across all EU countries. For Canadian fintechs, this structural difference adds complexity and slows growth. Canada’s fintech sector must now compete with peers operating under unified rules, faster timelines, and lower costs.
Canada's Missed Opportunity
In a June 2025 opinion piece for Cointelegraph, Jillian Friedman, COO of Symbiotic, warned that Canada risks losing ground:
“While other countries move toward integrating crypto into their financial systems, Canada is lagging, costing the country capital, talent and competitiveness.”
Crypto policy was grossly missing from all federal party platforms during the 2025 election, a “missed opportunity” at a time when early-stage VC activity is dropping and top STEM talent continues to leave. Friedman doubled down on Canada's issues including:
- Canadian seed-stage VC deals hit pandemic-era lows in Q1 2025 (according to CVCA data)
- CSA’s classification of stablecoins as securities continues is 'wrong' and will restrict adoption
- Crypto firms struggle to open basic bank accounts, even when AML risk is low
- Up to two-thirds of software engineering graduates are exiting Canada
See: SEC Clears Crypto Staking. What It Means for Canada
She argues that Canada should move quickly to unlock access to capital, offer tax incentives, and remove policy barriers if it wants to remain competitive.
Other Major Crypto Firms with MiCA Licenses
Several global firms have followed Coinbase in securing MiCA licences:
- Crypto.com, OKX, and Bitpanda received MiCA authorization in early 2025
- Bybit gained approval from Austria’s FMA in May 2025
- BitGo received its licence via BaFin in Germany
- MoonPay, BitStaete, ZBD, and Hidden Road secured early approvals in the Netherlands
Now do those same crypto firms also operate in Canada?
While several MiCA-licensed firms also operate in Canada the split below shows how global players are prioritizing the EU as a unified growth market, while (possibly) treating Canada as a smaller fragmented market.
See: UK FCA Plans Full Crypto Licensing Regime by 2026
| Firm | MiCA Licence | Canadian Operation |
| Coinbase | Yes | Yes (OSC restricted dealer) |
| Crypto.com | Yes | Yes (OSC restricted dealer) |
| OKX | Yes | No active registration |
| Bitpanda | Yes | No active registration |
| Bybit | Yes | Previously fined in Ontario; no active registration |
| BitGo | Yes | No known retail presence |
Why This Matters for Canadian Competitiveness
MiCA offers a clear example of how coordinated regulation can improve access, speed, and investor confidence. Prime Minister Mark Carney’s pledge to reduce interprovincial trade barriers could open the door to change, but digital asset policy must be part of the conversation.
See: The Crisis Canada and Fintech Can’t Afford to Waste
Without reducing regulatory burden and interprovincial barriers, Canada risks falling behind not because of lack of innovation but because of unclear rules that limit scale, delay market access, and create friction for investors.
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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eufyMake E1 Breaks Kickstarter Crowdfunding Record
Crowdfunding | June 25, 2025
Kickstarter Crowdfunding Record Over $61 Million (and counting) for eufyMake E1 Project
On June 24, 2025, the eufyMake E1 UV Printer officially became the highest funded project in Kickstarter history; raising over $61 million from more than 17,000 backers, surpassing the previous record of $41.7 million. The compact printer offers plug and print functionality and can print on a wide range of materials including metal, leather, and glass. Pricing at $499 helped attract broad consumer interest during its 30-day campaign window.
See: Innovating Crowdfunding with Bitcoin’s Network
According to the release, the campaign launched on April 29 and exceed $10 million in the first 14 hours, and then became Kickstarter's all time funding leader in less than a month. This is a monstrous achievement and moment to celebrate for non-investment crowdfunding in 2025.
Boost for Reward-Based Crowdfunding
In recent years, most attention in alternative finance has shone a spotlight on equity crowdfunding, token sales, and hybrid fintech models. Yet the record breaking and live E1 crowdfunding campaign shows that reward-based crowdfunding can still raise significant funding at global scale when a product fits the market.
Kickstarter campaigns offer backers early access to physical products without offering ownership. This lowers legal and regulatory barriers, making the model especially attractive for consumer hardware, creative tools, and design-led products.
See: The Real Story of Access to Capital
For Canadian entrepreneurs, makers, and platforms, the E1 campaign is a reminder that product-led innovation can still be funded directly by users, backers, and supporters. A strong value proposition, clear use case, and professional campaign execution with digital-first product marketing can still generate global momentum on reward-based platforms.
Closing Thought
Canadian companies that are not yet ready or suitable for venture equity funding or tokenization may find reward crowdfunding a valuable first step to validate demand, generate working capital, and build a user base. Interested in snagging one of these incredible printers? There's 66 hours to go. Be part of a record breaking campaign: https://www.kickstarter.com/projects/ankermake/eufymake-e1-the-first-personal-3d-textured-uv-printer
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Canada backs $100M Access Bank deal in Nigeria
Canada-Africa | June 24, 2025
Image: Freepik AI
FinDev Canada Joins Global Partners to Finance MSMEs and Women Entrepreneurs Across Nigeria
Canada’s development finance institution, FinDev Canada, has partnered with DEG (Germany), OeEB (Austria), and ILX (Netherlands) to provide a USD 100 million syndicated loan to Access Bank in Nigeria. This investment will directly support micro, small and medium-sized enterprises (MSMEs) and promote women’s economic empowerment.
Investing in African MSMEs to drive growth
MSMEs provide about 86% of jobs in Nigeria but still face major financing challenges. This loan facility will allow Access Bank to expand financial and non-financial services to underserved groups, including rural businesses, agribusinesses, and women-led enterprises. FinDev Canada is contributing $25 million USD towards this initiative to help increase access to credit, training, and market opportunities.
See: Africa’s Fintech Bridge Is Open for Investment
At least 30% of the loan proceeds are earmarked for women-owned businesses. Access Bank will offer reduced interest rates, business education, and networking support. This is FinDev Canada’s second investment in Access Bank (their first was a $50M loan facility in July 2024) and is fully aligned with the 2X Challenge, an international framework launched at the G7 Summit in 2018 promoting women’s participation in economic growth.
Lori Kerr, CEO of FinDev Canada:
“We can empower women entrepreneurs, develop underserved markets, and support job creation."
Strategic Impact for Canadian fintech and CAFS partners
Launching the first ever global Canada-Africa strategy in early March, and now this follow-on loan facility is a clear signal that Canada is expanding it's financial presence in Africa by supporting fintech infrastructure, sustainable finance, and inclusive business frameworks and models. Access Bank currently operates in 24 countries serving over 60 million customers and has a large digital footprint and a track record of innovation.
Recent data from the 2025 Nigeria FinTech Survey Report by Column confirms this growth: over 23% of young Nigerians now use fintech apps for saving, with digital platforms like Opay, Palmpay, and Kuda seeing wide adoption. The 18 to 44 age bracket reports more than 56% saving consistently (most use multiple apps), indicating demand for integrated financial services. This tech-savvy generation is actively budgeting and planning for their financial futures despite economic instability, making Nigeria a high-potential market for digital finance investment.
Why This Matters for CAFS 2025 and NCFA Members
This deal is aligned with one of the key impacts of the inaugural Canada-Africa Fintech Summit (CAFS) 2025 taking place in Toronto from August 5-8, 2025 to drive practical collaboration between Canadian and African partners across finance and innovation. Nigeria accounts for 28% of Africa’s fintech activity and remains one of the highest growth digital finance markets on the continent.
See: Fintech Grows 3x Faster, 97% of Market Still Untapped
Mobilizing Canadian capital to support financial infrastructure and innovative start-ups can unlock commercial opportunity. NCFA and CAFS participants attending sessions like “Purpose, Profit, Planet” or “From Strategy to Scale” can use this as a live case study of what cross-border investment looks like when it combines capital, digital access, and market growth at scale. Tickets on sale now
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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Calgary’s Modular Raises Key Insurtech Funding Round
Financing | June 24, 2025
Image: Modular Solutions (CNW Group/Tailwind Ventures Inc.)
Calgary’s Modular Solutions Closes Major Insurtech Seed Round from Strategic and Local Investors
On June 19, 2025, Modular Solutions announced closure of a big seed round led by Tailwind Ventures, with Clear North Capital and an unnamed strategic partner. Although the total financing amount wasn't disclosed, PitchBook data cited in the press release that it ranked among the top five North American insurtech seed deals, and second‑highest pre‑money valuation since January 2023.
See: Zūm Rails and Western Union Deliver Real Time Global Transfers
The funds will be used to streamline onboarding and implementation for insurers and brokers. Also to expand the platform's functionality including artificial intelligence and deepen integrations with insurers, managing general agents (MGAs) and brokers.
Braden Bosch, Founder and CEO of Modular Solutions:
"This capital raise marks a pivotal moment for Modular. We have brought an innovative software solution to the market, and with this investment, we can ensure low total cost of ownership and affordability while continuing to optimize and enhance our offering even further."
Darren Engels, Tailwind Ventures CEO:
"Tailwind is delighted to have supported Modular in securing this financing. Braden and the team at Modular are building transformative solutions for an industry in desperate need of innovation, and our capital partners share our conviction that Modular will deliver."
Other Recent Canadian Insurtech Financings and Acquisitions
Insurtech sector has been heating up for a while now. Below are a couple of recent insurtech rounds:
- PolicyMe (Toronto) raised C$30 million across equity and debt tranches since 2023, backed by Blue Cross Life and Securian Canada. That Series B‑style round supports expansion into life, health, and dental products. It also demonstrates how insurtechs are maturing and scaling B2C and embedded products.
See: Walnut Insurance Raises $4.6M for Embedded Tech Expansion
- YouSet (Montréal) closed an oversubscribed C$3.5 million seed round on August 20, 2024, using a SAFE structure. The round included existing investors such as former Intact EVP Don Fox, Marsh MD Neil Mitchell, and Canavan Capital’s Joe Canavan, as well as new angels including AXA’s Jim Texier, Aviva’s Phil Gibson, and entrepreneur Dan Robichaud. YouSet launched its home and auto-policy bundling platform via that announcement.
- BrokerLink acquisitions - mid‑June 2025, BrokerLink, subsidiary of Intact Financial, acquired three brokerages: Avergate Insurance (Markham, ON), Keyes Insurance Brokers (Gananoque, ON), and CDM Insurance Brokers (Calgary, AB), closing on May 1 and June 1 respectively. These acquisitions expand both Ontario and Alberta footprints and show consolidation activity within the broker channel, indicating that distribution networks are evolving in parallel with tech-led innovation.
Why This Matters
AI powered workflow insurtech platforms that reduce friction are getting funded and transforming the insurance sector. Modular Solutions major seed round also highlights Alberta's emerging fintech and insutech ecosystem.
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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Popular Casino Games in Canada: Which Ones Are Played the Most?
June 24, 2025
Image: Freepik/YuliiaKa
If you’ve ever dipped your toe into the world of online gambling, you already know how diverse and exciting the landscape can be, but if you’re a Canadian player, there’s a particular set of games that stand out, not just for their entertainment value but for how often they’re played.
Whether you're a newbie or a seasoned spinner, knowing which titles dominate the scene can help you find your footing faster and make smarter choices when picking from the best online casinos in Canada.
So, what games are Canadians loving right now? Let’s dive into the most played casino games from coast to coast.
Online Slots: The Undisputed Favourite
Unsurprisingly, online slots are the top pick across most platforms. Easy to play and packed with colourful themes, slots offer everything from classic three-reel games to highly immersive video slots.
Canadians especially enjoy titles like Book of Dead, Gates of Olympus, and Big Bass Bonanza, all of which you’ll find at many of the best online casinos in Canada.
Why the obsession? Slots are fast-paced, often loaded with exciting bonus rounds, and don’t require any prior knowledge to start spinning. You could land a free spins round or even hit a progressive jackpot without ever needing a strategy. And with themes ranging from mythology to fishing adventures, there’s something for every personality.
Blackjack: The Game of Skill and Strategy
Blackjack holds a solid spot as one of Canada’s most-played table games, and for good reason.
It’s a rare mix of skill, timing, and just enough luck to keep you on the edge of your seat. The goal is simple—get closer to 21 than the dealer without busting, but the path there is full of decisions that matter.
Live dealer versions like Power Blackjack and Infinite Blackjack are especially popular among Canadian players who crave a more authentic, real-time casino experience.
Roulette: The Classic That Never Goes Out of Style
Whether it’s European, American, or French, roulette remains a go-to game for both new and experienced players. There's something irresistible about watching that little white ball spin around the wheel, especially when you’ve placed your chips on your lucky number or favourite colour.
European Roulette remains a favourite among Canadian players thanks to its lower house edge. Lightning Roulette adds a thrilling twist with fast-paced action and random multipliers for those craving more excitement.
This timeless game is featured prominently at the best online casinos in Canada, often alongside live-streamed versions hosted by real dealers for a more immersive experience.
Poker Variants: From Texas Hold’em to Casino Hold’em
If strategy and mind games are more your style, online poker has a strong following in Canada.
While traditional Texas Hold’em is played in online tournaments, many casino platforms now offer fast-paced variants like Casino Hold’em, Three Card Poker, and Caribbean Stud.
These versions let you play against the house instead of other players, making the learning curve easier for beginners. Live poker tables, complete with real dealers and card-shuffling cameras, give Canadian players that Vegas-like vibe without leaving home.
Baccarat: Simple Rules, Big Stakes
Baccarat might not have the flashy appeal of slots or the strategy of blackjack, but it has a loyal fan base in Canada, especially among high rollers. The game is straightforward: bet on the player, banker, or a tie. That’s it.
What makes baccarat so attractive is the low house edge and the speed of the rounds. Online platforms often include popular versions like Speed Baccarat and No Commission Baccarat, perfect for those who want fast results with minimal fuss.
Crash Games and Instant Win Titles: The New Frontier
Over the past couple of years, Canadians have jumped headfirst into crash games, a genre that didn’t even exist until a few years ago. These are real-time games where you place a bet and watch a multiplier rise until it “crashes.” Your job? Cash out before it’s too late.
Titles like Aviator, JetX, and Spaceman are some of the current hottest crash games. Their popularity stems from simplicity, quick sessions, and that adrenaline rush when you beat the system.
You'll also see instant win games like scratch cards and Plinko gaining traction. These aren’t your traditional casino games, but they’re definitely among the most played in Canada due to their low stakes and high entertainment value.
Final Thoughts: Choose What Suits You Best
With so many options out there, the key is to explore and find the games that suit your style, whether that’s spinning the reels, doubling down at blackjack, or testing your nerves in crash games.
See: GameStop Joins Growing List of Bitcoin Treasury Holders
The good news? The best online casinos in Canada make it easy to jump in, with generous welcome bonuses, free demos, and plenty of variety.
So, what are you waiting for? Whether you’re in it for the fun, the thrill, or the occasional jackpot, the Canadian online casino scene has a game with your name on it.
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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U.S. ACCESS Act Advances to Ease Crowdfunding Rules
Crowdfunding Regulation | June 23, 2025
Image: Freepik/rawpixel.com
U.S. Lawmakers Advance Bill to Boost Regulation Crowdfunding Access
As reported by Crowdfund Insider, on June 11, 2025 the U.S. House Financial Services Committee voted unanimously (51-0) to progress the ACCESS Act (H.R. 3645), a bipartisan bill seeking to modernize and expand Regulation Crowdfunding (Reg CF). The legislation would crease the cap on Reg CF offerings and reduce costly compliance obligations for early-stage businesses. Supporters say these changes are urgently needed to make equity crowdfunding more viable for smaller companies struggling with capital access and high review costs.
Key Updates in the Bill
- The bill was introduced by Rep. Dan Meuser (R-PA), formally titled the Amendment for Crowdfunding Capital Enhancement and Small-Business Support Act, passed the committee with a 51–0 vote.
- The bill wants to raise the threshold for reviewing financial statements from $100,000 to $500,000. Currently, any Reg CF issuer raising more than $100,000 must submit CPA-reviewed financials, which is a requirement often cited as prohibitive for small businesses given that legal fees can take a large chunk of the funds raised. Under the proposed change, issuers could raise up to $500,000 with self-certified financials.
- The bill wants to double the annual Reg CF offering cap from $5 million to $10 million to provide scaling startups more room to raise growth capital through regulated crowdfunding platforms.
See: Equity Crowdfunding Breaks Records in Canada
Rep. Dan Meuser, House Financial Services Committee:
“America’s entrepreneurs shouldn’t have to choose between raising the capital they need and paying accountants more than they plan to raise. The ACCESS Act updates outdated thresholds so the next great neighborhood brewery, tech start-up, or Main Street retailer can spend its first dollars on growth—not paperwork.”
Implications
Small businesses and startups often say that raising capital is a top barrier to growth. In the U.S., Regulation Crowdfunding allows private companies to raise money from the general public through SEC-registered broker-dealer platforms but expensive compliance costs can limit use of the pathway. According to everyone who unanimously voted for the bill on the House Financial Services Committee, increasing the exemption threshold for reviewed statements will reduce costs, improve the uptake of Reg CF, and provide early-stage smaller firms a fairer path to funding.
On the other hand, invest advocates like NASAA, warn that loosening reporting requirements could raise investor risk, but supporters say platforms and disclosure rules already provide sufficient baseline protection.
See: How Fintechs Are Unlocking Value in Private Markets 2024
Given the current economic climate and the unanimous and the fact that both major parties support the bill means there's a good chance of being approved. If adopted by the full U.S. House and Senate, the ACCESS Act could significantly increase the use of equity crowdfunding by small businesses across the U.S.
The Canadian equivalent to Reg CF in the U.S. is National Instrument 45-110 (startup crowdfunding), which has a $1.5 million issuer cap per 12 month period without any requirement to provide reviewed or audited financial statements.
Closing Outlook
The ACCESS Act is a rare bipartisan effort to reduce friction in Reg CF capital formation for small businesses, and if passed, could significantly boost the utility of the instrument and reduce compliance burdens holding back many early stage fundraising efforts in the U.S. Canadian regulators and industry should be closely following these changes to see how they can strengthen their own equity crowdfunding frameworks under Ni 45-110.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Canada to Implement Digital Tax Despite U.S. Pushback
Digital Tax | June 23, 2025
Freepik - Rawpixel.com, taxes
Ottawa to Enforce 3% Digital Tax Despite U.S. and Industry Pushback
*Update: On June 29, 2025, the federal government of Canada rescinded it's DST tax, a good faith tactic ahead of CUSMA negotiations.
As reported by CTV News, the Minister of Innovation, Science and Industry François-Philippe Champagne said on June 19, 2025 that Canada will not delay or pause the 3% Digital Service Tax (DST), even as U.S. lawmakers and Canadian business groups continue to voice strong opposition, setting the stage for further potential trade retaliation from the United States.
What Is the DST and Who Does It Affect?
Canada's Digital Service Tax act passed into law in 2024 and will be retroactively applied from January 1, 2022, with initial payments due by June 30, 2025. It targets tech giants earning over €750 million globally and at least $20 million CAD in annual Canadian digital revenues from online advertising, digital marketplaces, and user data monetization.
Why Is the U.S. Pushing Back?
Critics argue the DST unfairly targets American firms like Meta, Amazon, Google, Uber, and Airbnb and risks violating Canada’s commitments under the OECD/G20 Inclusive Framework and the Canada-US-Mexico Agreement (CUSMA).
See: U.S. Tax Bill Could Drive Capital Back to Canada
On July 11, 2024, members of U.S. Congress in a bitpartisan letter, urged the Biden administration to consider punitive tariffs, if Canada proceeded unilaterally with the tax. American tech lobby groups, including the Information Technology Industry Council and the Computer and Communications Industry Association, have issued statements warning of double taxation and negative impacts on investment.
How Are Canadian Businesses Responding?
Canadian organizations including the Chamber of Commerce and the Retail Council have also raised alarm about economic consequences. They say the DST will increase consumer prices, destabilize bilateral trade, and hurt Canadian competitiveness.
What Is the Government’s Rationale?
Yet the federal government insists the measure is necessary to ensure fair tax treatment and close loopholes for global digital firms operating in Canada. Champagne said Canada is prepared to defend its position and stressed that domestic companies must not be disadvantaged by outdated tax systems.
What Does This Mean for Canadian Fintechs?
NCFA recently wrote an article about the DST compounding pressure points for Canadian fintechs, already facing increased costs from Trump's tariffs. The combined regulatory and trade barriers could slow growth, raise compliance burdens, and weaken investment flows in a critical sector to Canada’s innovation strategy.
Which Other Countries Have Imposed Similar Taxes?
Canada is not alone. Countries including France, Italy, Spain, Austria, the United Kingdom, Turkey, and India have also enacted unilateral digital services taxes, citing similar concerns about tax fairness in the face of untaxed digital revenues.
These countries share several traits. They have large and growing digital user bases, limited ability to tax foreign digital giants under the current rules, and political pressure to rebalance domestic tax fairness. And many of these nations have grown impatient with the slow pace of OECD reform and acted independently.
See: Who Will Canada’s New 3% Digital Services Tax Impact?
Multinational firms like Google, Meta, and Amazon often avoid local corporate tax obligations by recording revenue in lower tax jurisdictions, even when earning substantial income from users in countries with no physical business presence. DST programs in these countries are their attempt to capture their share of this otherwise untaxed activity.
Why Have Germany and Japan Held Back?
In contrast, countries like Germany and Japan have avoided unilateral DSTs. Despite facing the same digital tax gap, they prioritize maintaining stable trade and diplomatic relations with the United States and remain committed to resolving the issue through OECD-led multilateral reform. They fear that unilateral DSTs could provoke retaliatory tariffs or disrupt broader trade relationships. Their restraint is shaped by economic strategy, geopolitical alignment, and their deeper integration with U.S. supply chains.
Where Does Canada Stand Among DST Critics?
By pushing forward with a DST in 2025 despite U.S. threats, Canada is one of the more assertive jurisdictions globally and at the forefront of U.S. DST activities. Its approach reflects growing domestic political pressure to tax digital activity fairly, even if it risks short-term diplomatic tension. However, it also positions Canada as a potential target for trade retaliation if a negotiated OECD solution is not reached soon.
Are There Alternatives to Canada’s DST?
Instead of enforcing a unilateral DST, Canada could explore alternative policy paths. One option is to delay implementation and condition it on measurable progress in OECD multilateral negotiations. This approach could defuse trade tensions while preserving Canada’s leverage. Another path is a bilateral tax agreement with the United States targeting large digital firms.
See: Canada’s Rising Tax Burden and Fintech Opportunities
Canada could also consider expanding existing corporate tax rules to capture significant economic presence in the digital space, without relying on a standalone DST.
A final alternative is to introduce temporary digital levies that phase out automatically once an OECD framework is enacted, aligning political accountability with global reform timelines.
Why It Matters
The digital services tax and U.S. trade threats are now intertwined, creating uncertainty for fintechs operating in or expanding into Canada. Companies should monitor policy developments closely. As geopolitical and regulatory pressures escalate, nimbleness and smart coordinated action will be key to maintaining innovation, competitiveness, and market access.
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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