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
CSA Review of EMD Selling Groups Exemption
Capital Raising | Dec 2, 2025
Regulators Launch Consultation to Assess Temporary EMD Selling Groups Exemption
On November 27 2025, Canadian securities regulators released CSA Multilateral Staff Notice 31-367, confirming that the temporary rule under Coordinated Blanket Order 31-930 will end on December 20, 2025 (see release). The consultation remains open until January 26, 2026, which creates a timing gap that matters for exempt market dealers, founders and investors who want clarity on whether a revised model may support stronger capital raising across Canada.
The EMD Selling Groups exemption started in June 2024. It enabled exempt market dealers to join selling groups in prospectus offerings. The policy goal looked straightforward. Most Canadian companies start in the exempt market. Many later raise growth capital under a prospectus. Allowing exempt market dealers to stay involved as companies advance could strengthen continuity, expand distribution and support investor access.
See: How Fintechs Are Unlocking Value in Private Markets 2024
The results did not match that intent:
According to the Staff Notice, only 3 exempt market dealers filed the required notice to participate, and only 2 of those exempt market dealers actually joined selling groups. Each took part in two prospectus offerings. That means the entire pilot produced four transactions nationally. The low participation explains why regulators want to close the temporary rule and collect feedback on the structural issues that affected the outcome.
What EMDs, Founders and Investors Said Through the Pilot
Regulators identified four barriers that influenced participation, according to the Staff Notice.
1. Exempt market dealers cannot access electronic settlement through the Canadian Depository for Securities. Issuers that chose to work with exempt market dealers needed to use paper certificates. This added time and cost to prospectus stage financing.
2. Exempt market dealers cannot advise clients on securities purchased under a prospectus. This restriction makes it difficult for them to support clients after closing.
See: Budget 2025 Accelerates Fintech, AI, and Capital Growth
3. Compensation limits created a barrier. Exempt market dealers faced a scale back on economics when compared with other activities available to them.
4. Issuers and investment dealers were not fully aware that exempt market dealers could participate. Some exempt market dealers reported that investment dealers did not understand the conditions required to include them in selling groups.
Although most issues seem like practical challenges, companies and intermediaries tend to choose the path with the fewest obstacles. Any friction at the distribution or settlement layer reduces interest in a new route, especially if the upside is limited.
Regulators also outlined the questions they want the market to address during the consultation. They want to understand whether the compensation limits reduced interest in the exemption and whether a different structure could support fair incentives. They also want feedback on how the lack of electronic settlement access affects issuer decisions, how the advice restrictions affect client relationships, and whether issuers and investment dealers need clearer guidance on how to include exempt market dealers in selling groups.
Why This Outcome Matters to the Market
Founders want financing routes that feel clear and predictable. Investors value trusted relationships and efficient execution.
Exempt market dealers want a model that supports their clients as they grow, along with fair compensation.
Read: DealMaker Raises $20M to Expand AI Capital Platform
The exemption tried to bridge the exempt market with the prospectus market but with only four completed transactions under the temporary exemption, data suggests that the approach wasn't sustainable for both issues and dealers who want reliable access to distribution during growth stage financing.
For founders, this means they will need to continue to rely on investment dealers when they reach the prospectus stage.
For investors, this means their EMD cannot guide them through a prospectus purchase because the rules doesn't allow exempt market dealers to advise clients on prospectus securities.
Regulators are now looking for feedback that reflects what founders, investors and dealers experience on the front line to better understand incentives, bottlenecks and market behaviour.
Regulators Look for Practical Market Insight
The Ontario Securities Commission recently launched a program offering $30,000 in grant support to academic researchers for new research work on Ontario capital markets. This program encourages research that helps regulators understand how companies raise capital and how the market supports growth. Note, NCFA previously wrote about how wider participation may better unlock the kind of innovative policies required in 2026 and beyond to support a dynamic and competitive capital market while protecting investors.
See: Market Forces Pressuring Fintech Plans For 2026
The combination of the CSA consultation and the OSC research program are signs that regulators want practical input grounded in real activity. The pilot produced limited use, so regulators now want to hear from market participants before they consider any new approach.
Outlook
Canada needs rules that help companies raise growth capital and help investors access opportunities backed by clear standards. The temporary EMD selling group exemption didn't move the needle enough in the practical world to support extension.
The CSA consultation now gives the market a chance to highlight what helps and what slows down capital formation. Founders, investors and dealers have an opportunity to provide inputs that supports growth and strengthens Canada’s competitiveness in capital markets innovation. Submit your consultation comments to the CSA here before January 26, 2026.
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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Visa Expands Stablecoin Settlement Across CEMEA
Stablecoins | Dec 1, 2025
Instant Settlement Infrastructure for Global Payment Flows
On November 26 2025, Visa announced an expansion of stablecoin settlement across Central and Eastern Europe Middle East and Africa through a new partnership with Vancouver-based fintech, Aquanow. The integration gives issuers and acquirers on the Visa network the ability to settle transactions in approved stablecoins such as USDC and introduces a settlement rail that clears value faster at lower cost and with fewer operational steps than traditional systems that rely on closing hours and multi-party workflows.
See: Aquanow Unveils the AQN Digital Ventures Fund for Nextgen Blockchain Startups
Visa first used USDC for settlement in 2023 and now records an annualized settlement volume above $2.5 billion proving that institutions are already incorporating stablecoin settlement in daily operations, moving transaction flow across markets and supporting teams that seek real-time settlement, instead of fixed windows.
Aquanow supports Visa's stablecoin expansion with digital asset infrastructure that processes billions of dollars in monthly activity. The company works with banks neobanks brokerages and payment firms, reporting a four year revenue growth rate of 3022%, earning it multi-year recognition as the 8th best Deloitte Technology Fast 50 top companies in 2024.
Faster Settlement For Global Institutions, Banks and Fintechs
Many institutions still work around systems that close on weekends, rely on several intermediaries, and delay the release of funds. These delays hold capital in transit and create uncertainty for teams that manage liquidity each day. Visa and Aquanow address this gap by offering a rail that runs at all hours and clears transactions faster than older cross border settlement paths.
This model reduces operational drag and gives financial institutions, banks and credit unions a clearer view of cash position in markets with uneven settlement conditions.
See: Visa Extends Stablecoin Settlement to Four Blockchains
This supports services that rely on dependable settlement such as global ecommerce platforms marketplace payouts and remittance flows.
- Quicker settlement means treasury teams gain more predictable access to funds
- Payment operators remove steps that slow down processing
- Global processors improve payout cycles across markets that rely on complex bank to bank networks
- Product teams can design services on top of a rail that runs by the clock rather than by local banking windows
- Customer teams can offer faster and more reliable payout times
Aquanow Builds Global Platform Under VARA Regulation
Aquanow launched in Vancouver, Canada and built a global digital asset platform that now powers part of Visa’s settlement expansion. The company maintains a publicly stated money services business registration with FINTRAC on its own website and operates a regulated entity in the United Arab Emirates through Aquanow ME FZE. The UAE entity received approval from the Virtual Assets Regulatory Authority for broker-dealer services, lending and borrowing, and management and investment services.
Read: Canada Releases The First Draft Of The Stablecoin Act
This structure shows how a Canadian born fintech can scale global settlement infrastructure by operating in markets that provide clear digital asset licensing. It's another great example of the capability of Canadian firms to contribute to global payment modernization, delivering digital settlement capacity within a regulated international environment. It also provides policymakers a reference point for how digital settlement can operate at production scale within clear regulatory frameworks.
Why It Matters
Visa's stablecoin settlement expansion across CEMEA, in partnership with Canadian fintech Aquanow, sets a new expectation for settlement speed and efficiency. Companies and institutions want faster movement of value, lower cost, and better control over liquidity. Digital asset rails deliver these results in ways legacy systems struggle to match. This partnership offers a clear example of modern settlement infrastructure that supports live cross border operations and works inside a regulated environment 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
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Market Forces Pressuring Fintech Plans For 2026
Strategic Planning | Nov 28, 2025
Image: Freepik/rawpixel.com
Fintech Considerations For 2026 Strategy
2026 is approaching and fintechs are entering the new year with clear signals on how capital is being deployed, how financial institutions are investing in automation and AI driven capabilities and which policies will shape financial infrastructure. Markets place a higher premium on efficiency, governance and resilience as financial institutions modernize data access and digital settlement. Retail investor participation also expanded as equity crowdfunding set new records in Canada, strengthening another channel of capital formation.
See: United States Genesis Mission And Canada’s Competitiveness
United States tariffs and interest rate expectations continue to influence capital costs and enterprise demand across North America. Singapore FinTech Festival 2025 recently wrapped and outlined what global leaders expect over the next decade. This article provides an overview of how these forces intersect and will impact 2026 conditions, helping fintechs define runway, product plans and investor alignment for the year ahead.
Capital Planning End of 2025
Global investors concentrated capital into fewer fintech companies through 2025. KPMG tracked $44.7B across 2,216 global fintech deals and reported stronger momentum in digital assets and AI powered platforms. The global fintech funding review for 2025 notes uneven performance across payments and infrastructure and continued strength in digital asset investment. AI influence extends across every funding stage and drives the clearest premium in investor behaviour.
Canadian fintechs raised about $1.62B across 60 deals. KPMG data reported by Lexpert shows a steep decline from record 2024 levels as investors became more selective and disciplined. KPMG’s H1 2025 report confirms the trend toward fewer large cheques and more careful deployment.
CVCA reported $2.9B across 254 Canadian VC deals with average cheque sizes near $11.4M. The VC deployment across Canada in H1 2025 reported that early stages represented more than half of deal count but only 10% of dollars. NCFA’s seed review shows AI companies raising about $24M across 12 early stage rounds and fintech attracting about $9M across pre-seed and seed combined in the seed investing trends in H1 2025.
Canadian founders also turned to retail investors through regulated equity crowdfunding channels. FrontFundr, a leading Canadian investment crowdfunding platform, enjoyed a banner year raising CAD $68.3M across 66 campaigns in 2024 with 4,226 individual investments, its strongest year on record. This growth in community capital raising speaks volumes that diversified sources of early stage capital can complement VC allocations during selective cycles. For fintechs, retail participation can help extend runway, validate demand and reduce dependence on a small number of institutional investors.
AI remains the strongest source of valuation strength across the fintech sector. NCFA’s analysis shows that AI fintechs attract a 242 valuation premium compared with non AI peers. This tells fintechs that investors reward automation, accuracy and data advantage even during slower deployment cycles. AI's impact will continue to drive product development strategy, unit economics and growth planning for 2026.
Canada Moving On Open Banking, Payments, Stablecoins, While Pausing Climate Disclosure
Open banking moves into implementation. Budget 2025 commits to a consumer driven banking framework that designates the Bank of Canada as the supervisor for accredited participants and sets rules for data access, liability, security and technical standards. The consumer driven banking framework in Budget 2025 changes data mobility from one off arrangements to regulated data rails. These data rails also support AI adoption because models require secure access to high quality data. Fintechs that prepare for accredited access and safe data workflows will gain an advantage as institutions deploy AI into risk, compliance and customer operations.
Fintechs should expect accreditation activity, testing and early stage integrations as technical standards move toward production readiness through 2026.
Retail Payment supervision is operational and supports future access to real time settlement. Under the Retail Payment Activities Act, the Bank of Canada supervises payment service providers to ensure operational resilience and safeguarding of client funds. This oversight creates the regulatory foundation required for participation in core payment systems. Payments Canada continues development of the Real Time Rail (expected Q2 2026), while the Bank’s commentary on cashing in on payments innovation explains how regulation strengthens competition and prepares the foundation for modernized settlement. It also sets the operational standards that AI systems must meet for real time fraud detection, liquidity monitoring and compliance automation. Fintechs should plan for higher compliance expectations in 2026 and a clearer pathway into national payment systems once real time settlement becomes available.
See: Canada Open Banking Commercialization Roadmap
Stablecoin regulation advances. Canada released the first draft of its federal stablecoin legislation which sets out rules for high quality reserves, custody, redemption, disclosures and prudential oversight. NCFA’s summary of the first draft of the Stablecoin Act outlines a government framework that brings fiat backed stablecoins into a supervised environment. As tokenized settlement expands, AI will move deeper into treasury, reconciliation, fraud control and settlement routing. Fintechs that design early AI enabled settlement workflows will operate more efficiently under these rules. Fintechs involved in digital money, cross border payments or tokenized settlement should expect stronger regulatory clarity across 2026.
Climate and sustainability disclosure remains paused. CSA halted its mandatory climate disclosure rule in April 2025 and signalled the pause will continue. Although the rule is on hold, enterprise buyers and investors still assess climate and transition risk data during diligence. The CSA climate disclosure update notes that existing materiality rules and OSFI Guideline B-15 still apply through 2026. AI plays a growing role in climate analytics and transition planning, which means fintechs that use AI for risk scoring and scenario work will offer enterprise buyers more actionable intelligence during diligence. Fintechs should assume voluntary disclosure is expected even without a formal mandate.
Competitiveness pressure remains. Bank of Canada leadership warns that slow progress on open data, payment modernization and digital infrastructure affects productivity and innovation. Reuters coverage of the warning on over regulation and competitiveness highlights the need to accelerate foundational reforms. AI impacts that competitiveness gap because institutions deploy AI into fraud detection, lending, treasury and customer workflows. Fintechs that use AI with strong governance will operate more efficiently, support regulated environments and scale faster when data access and payment rails modernize.
For fintechs, these signals point to regulated data access, modern payments and digital assets becoming the highest value infrastructure themes for 2026..
United States Tariffs, Rates And Capital Conditions
Fintechs operating in the North American economy are being impacted by United States tariffs, rate decisions and political volatility. United States imposed tariffs cut Canada’s projected GDP growth to about 1.4% in 2025 and 1.6% in 2026, according to IMF linked projections. These estimates reflect weaker demand and reduced investment appetite across export dependent sectors. Fintechs should treat tariffs as a structural constraint for 2026, not a short term shock.
Markets now expect the Federal Reserve to cut rates in December. Polymarket shows an 87% chance of a 25 point rate cut, based on more than $183M in trading volume, which reflects strong real time sentiment. Economists still expect only small rate cuts through 2026, with United States growth around 2% and inflation near 2.6%. Fintechs may receive some cost of capital relief but investors will continue to expect efficient spending, strong revenue performance and clear evidence of product viability at today’s cost structure.
See: Canada Expanding Economic Ties With UAE India And Africa
Canadian monetary authorities modeled the tariff impact and warned that trade friction could reduce investment by about 12% and lower output by almost 3% over two years. The Bank’s scenario work on tariffs and structural change supports planning for lower investment and slower recovery.
Fintechs should prepare for slower enterprise procurement cycles and more selective purchasing behavior.
Globally Expect Slower Trade, Fragmented Rules And AI Pressure
Global growth projections dropped to about 2.8% in 2025 as tariffs spread and trade tensions widened. Export Development Canada’s global economic outlook for 2025 and 2026 forecasts Canadian growth around 0.8% in 2025 and 1.1% in 2026. Fintechs should expect slower demand, higher operating costs and more uncertainty across key trading regions.
An MIT study released in 2025 shows that about 12% of United States jobs could be automated using current AI tools today. As AI pressure intensifies it drives enterprise demand for automation, cost control and compliance. It also accelerates talent scarcity and raises expectations for governance and model transparency across financial services.
Global regulatory fragmentation expands. The EU AI Act, United Kingdom digital regulation, Singapore AI governance frameworks and China data sovereignty rules all diverge. If fintechs want to scale internationally in 2026, they must build modular compliance, auditability and data governance into core architecture.
What SFF 2025 Says About 2026 And Beyond
SFF 2025 provided a clear view into the next cycle of fintech infrastructure and the capabilities that institutions expect. The SFF 2025 blueprint for the next decade of finance placed AI, tokenized settlement, quantum readiness and talent at the centre of global financial transformation for the coming years.
AI moved into production across onboarding, monitoring, underwriting and support. Financial institutions showed mature applications that reduce fraud, improve accuracy and accelerate customer workflows. Tokenized finance advanced as central banks and major institutions tested tokenized settlement assets, wholesale CBDCs and regulated stablecoins. These experiments are clear move from demos towards infrastructure design.
See: How Fintech Teams Move From Tools To Agents
Quantum readiness entered strategic planning as banks prepared for post quantum cryptography and assessed their high value data inventory.
Talent emerged as one of the most constrained resources, with strong demand for cybersecurity, data and AI capabilities.
2026 will reward fintechs that integrate AI into their core stack, design products that support tokenized workflows, build quantum safe readiness and hire for digital infrastructure skills that support resilience and scale.
2026 Fintech Planning Insights
| Canada Policy Shifts That Drive 2026 Strategy | ||
|---|---|---|
| Open Banking Readiness | Canada moves to regulated data rails with accreditation and Bank of Canada oversight. | Build accredited data access readiness now. This creates a major advantage when banks and credit unions adopt regulated data sharing in 2026 and gives fintechs a lead when institutional partners demand safe integration. |
| Payment Supervision Alignment | Retail Payment Activities Act supervision is active and PSPs prepare for Real Time Rail participation. | Raise operational standards to meet supervision requirements. This clears the path for Real Time Rail access when available and strengthens partnership credibility with banks that expect higher resilience from PSPs. |
| Stablecoin Compliance Design | Canada released the first draft of the Stablecoin Act with rules for reserves, custody and redemption. | Design compliance into digital money products now. This avoids costly retrofits when rules finalize and positions fintechs for early participation in tokenized settlement experiments that banks support across 2026. |
| Transition And Climate Disclosure | CSA paused mandatory climate disclosure but investors still expect transition data in diligence. | Maintain credible voluntary disclosure. This reduces diligence friction with investors and large institutions that rank climate and transition data as core risk inputs even without a mandate. |
| Capital Conditions For Canadian Fintechs | ||
| Runway Discipline | Canadian funding normalizes with more selective deployment and fewer large rounds. | Plan 18 to 24 months of runway. This protects valuations and gives Canadian fintechs flexibility during slower deployment cycles and longer diligence timelines. |
| Revenue Quality First | Investors reward revenue durability as rates in the United States and Canada change slowly. | Increase margins, retention and customer lifetime value. This strengthens funding outcomes and signals that the business performs at today cost of capital. |
| Diversified Capital Routes | Equity crowdfunding reached record levels with rising retail participation in Canada. | Use investment crowdfunding to extend runway and validate market demand. This reduces reliance on a small number of venture investors and supports growth during selective funding cycles. |
| AI As The Primary Driver Of Competitiveness | ||
| AI As Core Infrastructure | SFF 2025 showed AI runs onboarding, risk, fraud and support in production. | Automate core work and improve accuracy. This reduces cost, raises product reliability and strengthens enterprise trust when selling into Canadian banks and credit unions. Remember, AI fintechs receive a valuation premium because automation and accuracy improve economics at every growth stage. |
| Model Governance Strength | Institutions expect clear model behaviour and explainability before integration. | Document lineage and monitoring with precision. This increases procurement success and accelerates enterprise adoption when institutions face rising AI governance requirements. |
| AI Driven Efficiency | Canadian enterprises invest in automation as budgets remain tight. | Replace manual workflows with AI to lower operating cost. This strengthens margins during slower growth and improves investor confidence. |
| Tokenized Settlement And Security Readiness | ||
| Tokenized Settlement Readiness | Banks and central banks test tokenized deposits and wholesale CBDCs. | Design workflows that support tokenized settlement. This prepares Canadian fintechs for early pilot participation when infrastructure tests expand in 2026. |
| Quantum Safe Architecture | Institutions begin planning for post quantum encryption. | Inventory sensitive data and adopt cryptographic agility. This protects long term assets and reduces future migration cost for Canadian fintechs selling into regulated environments. |
| Trade, Tariffs And Canadian Procurement Conditions | ||
| Adjusted Sales Cycles | Tariffs reduce Canadian investment and slow enterprise buying. | Extend sales cycle assumptions and build conservative forecasts. This improves cash planning and prevents burn surprises when procurement slows across regulated sectors. |
| Cost And Risk Value Propositions | Global growth slows and Canadian enterprises protect budgets. | Lead with measurable savings and risk reduction. This increases purchase probability in cost constrained environments and improves sales success during slow demand cycles. |
Why It Matters For 2026
As the close of 2025 nears, fintechs operate in a world where capital rewards evidence first, and where AI driven performance gains receive premium valuation only when they improve accuracy, automation or margins. Fintech policy advancement in Canada moves forward on open banking, payments and stablecoins and these developments create new regulated rails to build on. Tariffs, interest rates and slower global growth increase the need for financial discipline and durable revenue streams. Retail investors also became more active in 2025 as equity crowdfunding set new records, giving Canadian fintechs another way to raise capital when venture funding is more selective. SFF 2025 highlighted the technologies that will shape financial infrastructure for the next decade.
See: AI Immerses Youth Today And The Real Question Of Protection
Fintechs that align their strategy with the forces that matter, including AI, regulated data access, modern payments, tokenized settlement and stronger governance, will be better positioned to raise capital, win enterprise partnerships and scale through uncertainty.
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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Australia Launches 2025 Digital Asset Framework
Digital Asset Regulation | Nov 27, 2025
Image: Australian crypto adoption 2019 2025 (Independent Reserve chart)
A Principles and Risk-based Digital Asset Framework Enters Australia’s Financial System
On November 26 2025, the Australian government led by Treasurer Jim Chalmers and Minister for Financial Services Daniel Mulino introduced the Corporations Amendment (Digital Assets Framework) Bill 2025 by official announcement New Digital Asset Laws to Unlock Innovation and Safeguard Investment.
See: Deloitte Australia’s AI Error Shakes Consulting Trust
The bill creates a clear digital asset framework that covers custody, settlement and platform operations, and it aims to raise investor protection while supporting stronger confidence across Australia’s quickly growing digital asset market. The government positions the framework as a foundation for long term innovation, including tokenization of real world assets, replacing years of uncertainty with defined expectations for operators and institutions.
Digital Assets Background In Australia
Australia has a large and active digital asset community with significant adoption, consistent user growth and a broad set of service providers, which explains the need for a clear regulatory framework. Australia also has several large crypto exchange platform operators serving mainstream users including global giants like Binance, Kraken and Coinbase to name a few.
Survey data and analysis of Australian crypto ownership in early 2025 shows that 32.5% of Australians have owned digital assets, and 70% of those investors hold Bitcoin. More than half of these investors report a profit on their activity.
Engagement continues to rise among older Australians (see chart above). Digital asset ownership among Australians over 65 reached 8.2% in 2025, up from 2% in 2019, read 'baby boomers and retirees invest in crypto'.
New Categories For Digital Asset Services
The bill creates two new financial product categories inside the Corporations Act. (1) A digital asset platform is a facility where an operator holds or controls digital tokens for clients, and (2) a tokenized custody platform is a facility where an operator holds a real world asset and links each asset to a single redeemable token.
These categories require an Australian Financial Services Licence and give operators a clear legal structure for activities that involve possession, safekeeping or management of client tokens and tokenised assets.
Principles-Based Standards For Custody And Settlement
The bill uses a principles-based approach by setting the main definitions and outcomes in the law while giving the Australian Securities and Investment Commission (ASIC), Australia’s corporate regulator, the authority to write the detailed custody and settlement standards. Parliament explains what platforms must achieve, including the need to safeguard client assets, keep accurate records, reconcile balances and manage settlement risk. ASIC then decides how platforms meet these outcomes in practice.
See: Australia Announces 10 Voluntary Responsible AI Guardrails
This approach lets ASIC update requirements as technology evolves without rewriting legislation. It keeps the focus on clear results rather than long checklists of technical steps.
Risk-Based Framework for Market Activity
The bill also uses a risk-based model that links the level of obligation to the level of exposure. Large platforms that hold significant client assets must follow stronger custody and settlement rules. Small platforms that hold less than $5,000 per customer and process less than $10 million a year qualify for a small scale exemption. This supports early pilots and lower risk use cases without placing them under the same obligations as large operators.
The Minister can also use a product intervention power when a digital asset creates clear risks for consumers or the financial system, which allows the government to place temporary limits on that product while ASIC puts longer term rules in place.
In short, the bill uses principles to define the outcomes and risk to decide how strongly those outcomes apply across the market.
Stronger Transparency For Clients
Operators must publish platform rules that act as a contract between the operator and clients. These rules must describe eligibility, settlement processes, use of external liquidity, allocation of operational risk and redemption or delivery of assets.
See: Bank of England Sets New Rules for Systemic Stablecoins
Clients receive clear information about how the service works and what risks they face, which supports informed decision making and strengthens accountability across the sector.
What Comes Next
The bill must now move through Australia’s parliamentary process, which includes further debate and committee review before a final vote. Regulators will prepare the custody standards, settlement standards and platform rule requirements once the bill becomes law. Operators will begin licensing preparation, platform rule design and compliance planning.
The next stage will also decide how the framework reaches newer parts of the market. The legislation sets the main structure, but the regulator must still fill in many operational details.
Those standards will determine how custody rules work in practice, how platforms handle execution and settlement and how services near the line between custodial and non-custodial models will operate.
There are also open questions for stablecoins, decentralized finance and some wallet services, so the practical impact of the framework will depend on how the regulator completes this work in the months ahead.
Why The Framework Matters
Digital asset custody and platform activity now follow the same regulatory expectations used across Australia's financial system. Institutions can participate with more confidence because the framework sets out clear duties for operators that hold client assets or manage tokenized activity. The government notes that digital finance innovation could generate as much as $24 billion each year in productivity and cost savings for Australia.
See: Canada Releases The First Draft Of The Stablecoin Act
The combination of principles-based standards and risk-based market obligations gives operators clear expectations as they build new tokenized real world asset projects, and supports long term innovation under rules that stay steady even as technology changes.
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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No-KYC Crypto Betting: Key Regulatory Considerations
Nov 26, 2025
Image: Unsplash/Morthy Jameson
Crypto-based betting platforms have sparked new discussions in compliance and digital finance. As activity grows, industry participants are paying closer attention to how identification standards, data practices, and risk controls operate across different models.
No-KYC Basics
Platforms that operate without identity-verification steps rely on alternative methods to manage access, transactions, and limits. Experts from Bitedge.com note that interest in no kyc betting sites in Canada often relates to speed and privacy, but these features also prompt questions about oversight and accountability. When traditional verification checkpoints are removed, other forms of monitoring tend to become more prominent, including blockchain-based tracking tools and automated controls.
Regulatory Focus
Supervision frameworks for digital assets typically emphasize transparency, reporting, and safeguards against misuse. Models that reduce identity requirements still fall under these expectations. The team at Bitedge.com highlights that regulators increasingly consider how different crypto platforms apply risk-based controls, especially when transactions move across multiple providers. Clear standards for recordkeeping, transaction thresholds, and dispute procedures remain key points of attention.
Provincial Regulation Examples
In Canada, regulatory landscapes can vary by province. Ontario has embraced a regulated iGaming market with explicit crypto gambling guidelines, while British Columbia’s BCLC integrates crypto within its PlayNow platform, offering retail sportsbooks and online services under close oversight. Quebec leverages blockchain technology for enhanced transparency in gambling regulation. These provincial nuances illustrate the dynamic compliance environment providers must steer through.
Compliance Models
Some platforms apply tiered verification, where certain features require additional screening. Others focus on on-chain analytics, allowing them to review transaction patterns without conventional documentation. Each model presents its own compliance considerations, especially around consistency and auditability. Industry specialists often discuss how automated tools can help maintain internal controls even when user data collection is limited.
Legal and Compliance Challenges
Crypto betting faces growing legal scrutiny in 2025, including unclear jurisdictional rules, AML enforcement, and licensing gaps. Platforms must tackle risks around anonymous participation, transaction monitoring, and tax reporting. Establishing sound legal strategies and compliance frameworks is critical to avoid sanctions and sustain operations.
Security Measures
Cybersecurity continues to be central in digital finance, regardless of verification method. Platforms that do not collect extensive personal data still need strong protection for deposits, withdrawals, smart contracts, and operational systems. Multi-signatures, cold-storage practices, and third-party audits are widely used to support reliability. According to analysts referenced by Bitedge.com, clear communication about these measures helps users and partners understand how risks are managed.
Data Practices
Privacy-forward models typically reduce stored personal information, which can lower exposure in a breach. However, this does not remove the need for secure handling of transaction data, logs, and system access records. Transparent data-governance policies help clarify retention periods, access protocols, and methods for responding to technical issues.
Industry Outlook
Discussions around identification requirements continue to shape digital-asset policy. As more service providers explore crypto-based betting, industry groups, legal advisors, and technology teams are reviewing how different models align with reporting expectations and operational standards. The team at Bitedge.com often observes how these conversations advance when providers, developers, and compliance experts work together to define practical approaches.
See: Investing in the Future of AI and Blockchain
In the context of ongoing sector development, many professionals follow educational sessions, roundtables, and regulatory briefings to stay current. Those seeking timely updates can review NCFA’s upcoming events, which often cover trends in digital finance, compliance practices, and emerging technologies.
Market Monitoring
As crypto betting continues to evolve, monitoring tools, audit mechanisms, and governance practices remain central topics. Providers that adopt no-KYC models frequently explore ways to combine privacy-protective features with rigorous oversight. Open dialogue between platforms, technical specialists, and policy groups helps maintain clarity as new methods gain attention.
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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Klarna Launches KlarnaUSD And Enters US Stablecoin Race
Stablecoins | Nov 25, 2025
Image generated by AI
Klarna Enters Stablecoins With Tempo-based KlarnaUSD
On November 25 2025, Klarna Group plc announced the launch of KlarnaUSD, and enters a global stablecoin market that McKinsey estimates now processes more than US$27 trillion in annual transactions and sits inside a cross border payments system that produces about US$120 billion in yearly fees.
See: PayPal Launches No Fee Pay in 4 in Canada
Klarna brings 114 million customers and US$118 billion in annual gross merchandise value to its launch. The company already operates as a licensed bank in Sweden through Klarna Bank AB, and the company continues to expand its banking services beyond that market as it builds new digital payment and settlement tools. Klarna now moves beyond buy now pay later in the US and steps into the stablecoin market with an infrastructure level product designed for scale.
Klarna Builds A New Settlement Layer With Tempo
KlarnaUSD runs on the Tempo blockchain that Stripe and Paradigm created that's designed for payments. Tempo supports fast and low cost transfers which gives the company a quicker way to move money than traditional bank systems.
The stablecoin is issued through Open Issuance by Bridge explained by Stripe. Bridge connects Tempo to apps, wallets and bank accounts so KlarnaUSD can move across the app, the merchant portal and settlement tools.
Klarna's stablecoin keeps a one-to-one value with the US dollar, and its reserves sit off chain so the service can follow local rules.
KlarnaUSD runs on Tempo’s testnet today and moves to mainnet in 2026 which gives the company time to test and build before public availability.
See: Visa Extends Stablecoin Settlement to Four Blockchains
Sebastian Siemiatkowski, co-founder and CEO of Klarna:
"Klarna has the scale to change payments globally: with Klarna’s scale and Tempo’s infrastructure, we can challenge old networks and make payments faster and cheaper for everyone,”
Here Are 5 Use Cases For KlarnaUSD
Klarna presents KlarnaUSD as a faster and cheaper settlement tool but the likely impact will reach further and impact how payments and value move inside Klarna’s ecosystem.
1. Merchant Settlement At Lower Cost
Klarna can settle payouts through KlarnaUSD which avoids long clearing cycles and reduces FX friction. Merchants that receive faster settlement at lower cost usually send more business volume to the service that provides those results because it improves cash flow and reduces operational friction. So Klarna can also expect more volume.
2. Cross-Border Consumer Payments
Shoppers can complete international purchases with KlarnaUSD and avoid the delays and FX fees that occur on card and bank networks. Merchants that convert international shoppers at lower cost often strengthen their margin and rely more on the service that supports those outcomes.
3. Faster Refunds And Buy Now Pay Later Adjustments
Refunds, reversals and buy now pay later corrections can move across KlarnaUSD flows with fewer delays.
See: Canadian Banks and Fintechs Back Regulated Stablecoin
Consumers that receive faster refunds tend to return to the service that resolves issues quickly which supports higher repeat use.
4. Token Based Balances And Savings Style Tools
KlarnaUSD can support balances, rewards and saving style tools inside the app without the company building full banking infrastructure in each region. Users that keep balances inside a single platform often deepen their engagement because their financial activity stays in one place.
5. Settlement Services For Other Fintech Companies
Fintech companies can use KlarnaUSD for their own settlement flows which reduces cost and increases speed. Platforms that provide reliable settlement rails often become part of a partner’s operational stack which expands the platform’s role in the broader ecosystem.
Risk Considerations
Stablecoin issuance introduces new responsibilities for Klarna. Regulatory risk matters because stablecoins sit under active review and issuers must meet rules on reserves, redemption and consumer protection.
Reserve management brings risk because Klarna must maintain high quality USD backing and manage liquidity for redemptions.
See: BNPL Plans Are Starting to Affect Credit in Canada
Technology risk also exists because KlarnaUSD depends on the Tempo blockchain and Stripe’s Bridge framework which must perform under load and remain secure.
Reputation risk matters because any issue with redemption, reserves or outages can affect trust across Klarna’s full product suite.
Klarna In Canada
Klarna operates in Canada today through its app and merchant partners. According to NCFA’s Canadian market overview in “Klarna’s Meteoric Rise in the Canadian Financial Ecosystem” (Aug 2023), Klarna gained 640,000 active Canadian consumers within 18 months of its Canadian launch.
Klarna notably also went public this past September 2025 on the New York Stock Exchange, IPO priced at US$40 per share and opened with a 16% jump, as outlined in the NCFA analysis of Klarna’s IPO pop. This debut placed Klarna’s valuation near US$17.5 billion and signalled strong early investor interest. The stock now trades near US$29.92 (KLAR), according to the latest public market price. Maturing crypto markets, Klarna's digital bank growth plans, and recent IPO all help explain why Klarna is investing in new digital settlement tools, and let's not forget investor expectations.
Read: Stablecorp Raises $5M+ to Accelerate QCAD Adoption
While Klarna hasn't announced a Canadian launch timeline for KlarnaUSD. The confirms that KlarnaUSD is in testnet and planned for mainnet in 2026. Plus, a Canadian rollout depends on the completion of Canada’s new stablecoin rules of which the first draft of the national stablecoin act has just been released. Also worth reviewing is the FCAC's national survey on Canadian stablecoin use and views.
Why It Matters
KlarnaUSD highlights how fintech companies can advance when they control both the customer network and the settlement rail. Klarna improves speed, lowers cost and gains room to build new financial services without relying on legacy systems. For Canada the timing is important. Stablecoin settlement is now moving into commercial use and companies that adopt token based rails can gain real cost and speed advantages. Canada’s stablecoin work gives local innovators a chance to compete as global fintechs introduce faster settlement tools.
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 Expanding Economic Ties With UAE India And Africa
Economy and Trade | Nov 24, 2025
Image generated by AI
Canada Strengthens Global Trade and Investment Partnerships to Diversify Markets
On November 23 2025, Canada announced a raft of cross-border trade partnerships after Prime Minister Carney spent the past week securing commitments in the United Arab Emirates, South Africa and India as part of a wider push to reduce reliance on the United States and expand global economic partnerships. These new openings create opportunities for Canadian fintechs and the wider innovation economy.
Carney used the G20 forum to reinforce Canada’s broader diversification strategy, pointing to U.S. tariffs and market uncertainty as direct pressures on Canadian growth, costing Canada an estimated 1.8% of GDP or the the equivalent of $50 billion or $1300 per individual. The PM's strategy aims to double exports to non-U.S. markets over the next decade, using new investment frameworks and economic partnerships to anchor that growth.
See: Africa’s Fintech Bridge Is Open for Investment
The strategy is aligned with NCFA's own cross-border initiatives to foster education, partnerships, and build economic and investment opportunities for regional fintech networks, which now sits directly on top of new trade corridors Canada is formally building. A couple of recent examples alone are NFCA Canada's collaboration with the 2025 Canada-Africa-Fintech-Summit, as well as an educational partnership with TheBlock, a Dubai-based virtual assets association, to focus on tokenization and real world assets (RWA) education.
UAE Investment Deal Opens Major Capital Channel
On November 21 2025, during a visit to Abu Dhabi, Canada signed a new Foreign Investment Promotion and Protection Agreement. The UAE also signalled plans to invest up to approx $70 billion CAD (US$50 billion) in Canadian projects focused on artificial intelligence, clean energy, mining and infrastructure, according to the government’s UAE investment announcement.
The two countries also launched negotiations toward a Comprehensive Economic Partnership Agreement, which would cover services, goods and digital trade and give Canadian firms a more stable foothold in Gulf markets.
South Africa Talks Establish An African Growth Bridge
On November 23 2025, at the G20 Leaders Summit in Johannesburg, Canada announced new investment-protection talks with South Africa and confirmed the completed Nuclear Cooperation Agreement. These developments were highlighted in the government’s South Africa investment readout.
See: Budget 2025 Accelerates Fintech, AI, and Capital Growth
Canada also confirmed that FinDev Canada will open a Cape Town office in 2026, expanding its financing presence in African markets where digital financial services and early-stage business activity continue to grow.
India And Canada Restart CEPA Negotiations
Canada and India agreed to restart talks on a Comprehensive Economic Partnership Agreement after a two-year pause. This decision was confirmed in the India–Canada CEPA update issued during the G20 meetings.
Both governments signalled interest in expanding trade through improved access in goods, services, investment and digital sectors, with a a longer term goal of increasing two-way trade toward the US$50–70 billion range by 2030 depending on final terms.
What This Means For Fintech
These agreements, while they don't specifically mention fintech directly, they will impact the trading environment and structural conditions that matter for financial technology and funding innovation firms in the following ways:
More global capital in play. The UAE’s multibillion-dollar investment envelope creates new demand for financing platforms, risk systems, payments infrastructure and digital tools that support large scaling AI, energy and infrastructure projects.
See: Fintech Grows 3x Faster, 97% of Market Still Untapped
New markets with strong digital finance adoption and upside. South Africa and broader African regions continue to scale mobile money, SME finance and digital identity rails. India remains one of the world’s largest digital payments ecosystems. Canadian fintechs offering compliance, embedded finance, alternative credit, and capital formation tools can explore more predictable and supported entry routes.
Trade agreements that impact digital rules. Investment treaties and CEPAs often influence data standards, dispute resolution, digital services access and treatment of financial technologies. Early engagement ensures fintech and alternative finance models are not overshadowed by incumbent only positions.
Outlook
NCFA encourages fintech founders, investors and innovators to take advantage of these expanding global routes. Connect with us to discuss Africa and UAE partnerships, participate in upcoming trade related roundtables, and support policy and outreach work, as Canada negotiates new digital trade and investment frameworks. These government agreements create real openings, and NCFA’s global bridge network is ready to help Canadian fintechs move into these markets.
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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