Category Archives: Legal Issues and Regulation

$5 million Equity crowdfunding extended to private companies

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Australian Financial Review | Michael Bailey | Sep 12, 2018

Businesses wishing to raise money from retail investors will no longer have to convert to an unlisted public company structure, after an amendment to 2017's equity crowdfunding legislation passed federal Parliament.

The legislation, which takes effect in 28 days from Wednesday, allows proprietary companies or unlisted public companies with annual turnover or gross assets of up to $25 million to advertise their business plans on ASIC-licensed crowdfunding portals, and raise up to $5 million a year to carry them out. Investors can put up to $10,000 a year each into an unlimited number of ideas.

Australian private companies are typically limited to a maximum of 50 non-employee shareholders. However, under these reforms, investors acquiring shares through a crowdfunding portal are excluded from this cap, allowing private companies to raise funds from potentially hundreds or thousands of investors.

See:  Australia and UK set up FinTech Bridge to deepen collaboration between governments, regulators, and industry bodies

Proprietary companies with crowdfunded shareholders will have to prepare annual financial and directors' reports in accordance with accounting standards.

Only large proprietary companies, defined as those with any two of either $25 million turnover or above, $12.5 million of gross assets or more, or 50 employees or more, have previously had to prepare such reports.

Those private companies accessing equity crowdfunding will also become subject to related party transaction rules and takeover rules, and will have to include details about the offer and the shareholders as part of their company register.

Some compliance relief has been provided to the unlisted public companies already eligible to use equity crowdfunding.

Now, all companies raising money via the crowd will only have to have their financial statements audited when they have raised $3 million or more, up from $1 million previously.

The cost and compliance of converting to an unlisted public company had previously deterred most businesses from considering equity crowdfunding, said Jonny Wilkinson, co-founder of one of the ASIC-licensed portals, Equitise.

 "Having a formalised structure and process for smaller proprietary companies to raise funds from the crowd - their customers, friends and family - will be a huge boost to small businesses and the economy, driving both growth and employment," he said.

"In turn, it also gives everyday investors the opportunity to invest in these companies and potentially make a return."

See:  Equity crowdfunding is eroding the best returns VC funds used to enjoy

The performance of equity crowdfunding has been mixed in its most established market, the UK, where it has been legal since 2011 . A 2016 study by licensed platform Seedrs of the 250 companies that had used it to raise money found they had produced an overall 14.4 per cent internal rate of return, but 41 per cent of the deals had lost money or collapsed altogether.

The quality of companies seeking funding on equity crowdfunding  platforms was questioned by 2018 research from Belgium's Ghent University and France's SKEMA School of Business, which compared data from 277 firms that sought financing on UK-based Crowdcube with two sets of similar firms that didn't list on crowdfunding platforms.

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with fintech, alternative finance, blockchain, cryptocurrency, crowdfunding and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Blockchain is here – so what next? The Blockchain Developer Opportunity If you are a software engineer interested in emerging high growth project opportunities, you’ll want to ensure your technical skills are polished and you have access to proper training and resources. There is a significant shortage of skilled Blockchain developers unable to meet the demand of emerging projects! NCFA is pleased to announce an inaugural educational partnership with the Blockchain Learning Group offering a special introductory rate to attend an immersive, 2-day Blockchain developer training course on decentralized application development to help fill the gap of skilled engineers while connecting graduates to project opportunities. According to a recent 2018 PwC survey, 84% of 600 executive responders confirmed some involvement with Blockchain technology from proof of concepts to well capitalized international scale-ups and incumbents looking to modernize legacy systems. Distributed and immutable ledger applications are evolving rapidly with uses cases that improve trust and transparency for many business processes while distributing transactions to a decentralized network in a way that reduces costs and eliminates intermediaries. While crypto markets have exceeded $200 billion in just the last 2 years alone, the underlying technology is forecasted to disrupt almost every vertical with ...
Read More
Immersive 2-day Blockchain Developer Training Course (Nov 10-11, Toronto): Decentralized Application Development
Incipient Industries | Steven Dryall | Sep 19, 2018 Incipient Industries Releases Whitepaper Describing How Cryptocommodities  Are Created and Used As The Basis For A Stable Cryptocurrency Toronto, ON, Canada, September 17, 2018 - Incipient Industries Inc. announces the release of the definitive whitepaper on the subject of cryptocommodities. Following years of development combined with the dissemination of information related to cryptocurrency viability and asset- based cryptocurrencies, an actual description of how to deploy a cryptocommodity  is now available. This is a first in the burgeoning cryptocurrency industry and represents a significant step towards a stabilized digital economy. The cryptocurrency industry is still developing and discovering ways to integrate with traditional financial systems or to replace them altogether. The introduction of cryptocoomodities into the cryptosphere creates a new category of opportunities for pioneers in the space. For those seeking a solution to a stable cryptocurrency, this is the best path to success. See:  3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith “This is a perfect use case for cryptocurrency and also follows the Three Pillars of a Viable Cryptocurrency framework.” says Steven Dryall, CEO of Incipient Industries, who has pioneered several key concepts of ...
Read More
Whitepaper Provides Information About Cryptocommodities As The Basis For A Stable Cryptocurrency
Bloomberg | Joshua Brustein | Sep 4, 2018 With fewer than 100 residents, Ocean Falls is looking for a revival after almost four decades of industrial false starts. In 1971, an 11th grader named Greg Strebel wrote the introduction to a book about Ocean Falls, the tiny town in the British Columbian hinterlands where he lived. Strebel mentioned the odd fact that many of the town’s roads were made of wood, said the weather wasn’t as bad as some people made it out to be and noted that it had just gotten a new school building. But the one thing that mattered above all, according to Strebel, was the paper mill. “To most, 'the mill’ imparts a sense of security by its presence,” he wrote. “A low throb of power is audible throughout most of the town as long as the mill runs, accompanied by voluminous exhalations of steam.” The security provided by the mill turned out to be fleeting. It went silent when Strebel was in his 20s. Most of the buildings in Ocean Falls that haven’t been demolished over the decades are crumbling in place, and Strebel, along with most everyone who once lived there, is long gone. A ...
Read More
The Bitcoin Boom Reaches a Canadian Ghost Town
Australian Financial Review | Michael Bailey | Sep 12, 2018 Businesses wishing to raise money from retail investors will no longer have to convert to an unlisted public company structure, after an amendment to 2017's equity crowdfunding legislation passed federal Parliament. The legislation, which takes effect in 28 days from Wednesday, allows proprietary companies or unlisted public companies with annual turnover or gross assets of up to $25 million to advertise their business plans on ASIC-licensed crowdfunding portals, and raise up to $5 million a year to carry them out. Investors can put up to $10,000 a year each into an unlimited number of ideas. Australian private companies are typically limited to a maximum of 50 non-employee shareholders. However, under these reforms, investors acquiring shares through a crowdfunding portal are excluded from this cap, allowing private companies to raise funds from potentially hundreds or thousands of investors. See:  Australia and UK set up FinTech Bridge to deepen collaboration between governments, regulators, and industry bodies Proprietary companies with crowdfunded shareholders will have to prepare annual financial and directors' reports in accordance with accounting standards. Only large proprietary companies, defined as those with any two of either $25 million turnover or above, $12.5 million of gross ...
Read More
$5 million Equity crowdfunding extended to private companies
NCFA Sponsored guest post | Sep 18, 2018 “You are such a worry-wart.” This is the common reaction I get whenever I tell people about how I like to plan ahead. They tell me that I’m too overreacting, that I live too much for the future and not for the present, and that I really don’t get the concept of YOLO. I really don’t give a darn about what these people say. They’re impractically wasting their time, breath, and energy trying to change how I live my life. What if I’m so gung-ho about planning for the future? What if I’m too overly prepared even my future dogs and cats will be feasting every single day? It’s still better than having no insurance. It’s still better than having my children carry my weight. Lastly, it’s still better than being ill-prepared. See:  What Can Traditional Banks Learn From Fintech? If I were to choose between too much and too little, I’d choose too much any day. After all, what’s wrong with having so much you could spare a ton? It’s a thousand times better than having to ask for financial aid because you have so little. Do you get me? I ...
Read More
Why Life Insurance Policies Matter
Forbes | Michael del Castillo | Sep 17, 2018 People keep asking me, what’s the deal with stablecoins? With two prominent regulatory approvals to issue the blockchain-based tokens, many have heralded them as the next evolution of cryptocurrency, while others say they’re perfect evidence of why no one ever needed cryptocurrency in the first place. On a basic level, a stablecoin is a token that has a mechanism in place to minimize its price fluctuations. Unlike traditional cryptocurrencies such as bitcoin and ether, which are directly tied to their wildly fluctuating demand, a stablecoin can rely on four methods to constrain its fluctuations. See:  One SEC commissioner is establishing herself as the voice of innovation for the crypto market The first and by far most popular way to achieve this stability is to peg the price of the token to a more stable asset like the U.S. dollar. This is what both the Gemini and Paxos cryptocurrency exchanges received permission to do from the New York Department of Financial Services last week. Unlike bitcoin and ethereum, which are created through a mining process that also ensures the blockchain’s accuracy, these stablecoins are only created when someone buys them with U.S. dollars. Gemini and Paxos ...
Read More
3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith
NCFA Canada | Sep 14, 2018 Ep9-Sep 14: Curexe's New SmartPay Product & Front-line of Global Digital Payments About this episode:  On this episode our host Manseeb Khan sits down with the CEO And founder of Curexe, so chat about their new product called SmartPay! They also talked about how A.I is going to touch the payments and every other industry, regulations that could be in place when accepting crypto and many more. Enjoy! Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest: Johnathan Holland, Founder and CEO, Curexe Bio:  Johnathan Holland's experience comes from a decade of learning about capital markets and a relentless pursuit of providing better customer experiences in the payments and currency exchange industry. Johnathan’s advantage has been to look at the currency exchange industry in a new light, which enabled him to create a new, better way to empower the businesses that are underserved by their current solutions.  Johnathan graduated from the 2016 cohort of the Next 36 accelerator program that helps young entrepreneurs build high impact businesses and is currently running the company out of the DMZ.  LinkedIn profile Join NCFA's weekly Podcast series 'FINTECH FRIDAY$' where we sit down with the incredible people ...
Read More
FINTECH FRIDAY$ (EP.9-Sep 14):  Curexe's New SmartPay Product & Front-line of Global Digital Payments with Johnathan Holland, Founder of Curexe
Bloomberg | By Natalie Wong and Gerrit De Vynck | June 20, 2018 A cryptocurrency baron has bought the largest and one of the most expensive condos in Canada, paying for it partly with digital money. Anthony Di Iorio purchased the three-story penthouse for C$28 million ($21 million) at the St. Regis Residences Toronto, the former Trump International Hotel & Tower in the downtown business district. The unit totals 16,178 square feet (1,502 square meters) and includes a wrap-around patio overlooking the city’s skyline at the corner of Bay and Adelaide Streets. Di Iorio didn’t take out a mortgage for the property because he doesn’t “like being in debt.” Instead, he cashed out some of his cryptocurrency and made a wire transfer to pay the price. “I don’t remember exactly which ones I cashed in but this is my safety net, real estate right?” he said in an interview with Bloomberg at his new condo. He now owns two condos units in Toronto for a total investment of about C$34 million, he said. “I decided to take a bunch out and put it in real estate.” The hotel is owned by InnVest Hotels LP and operated by Marriott International Inc. as ...
Read More
Crypto Pioneer Buys Penthouse in Former Toronto Trump Tower
Computer Weekly | Karl Flinders | Sep 13, 2018 A Tech Nation programme to support the UK's financial technology startups demonstrates the increasingly diverse range of business-to-business products and services available through the country's fintech community Financial technology (fintech) is providing a market where IT professionals in the finance sector and beyond can find answers to their business challenges through specialist tech startups. UK-based CIOs have the benefit of having these fintech startups on their doorstep. UK government-backed startup network Tech Nation has selected 20 such fintech startups to take part in a five-month programme that aims to scale up early-stage companies. The programme’s business-to-business (B2B) focus demonstrates that beyond the high-profile digital challenger banks and payments companies targeting consumers with funky apps, there is a deep source of niche financial services IT innovation in the UK. Fintech solutions begin life as an idea about how to use technology to solve a particular financial services problem. The speed of software development today means products can quickly follow. See:  UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany But the challenges really begin when it comes to turning a great idea into a commercial success. This is where the likes ...
Read More
Tech Nation startup programme demonstrates richness of UK fintech
Forbes | Enrique Dans | Sep 5, 2018 The growing popularity of fintech and the emergence of competitors in different phases of the cycle, from new banks such as Germany’s N26 to partial service providers such as Revolut and others, or niche competitors such as Shine, highlights not just the inability of traditional banking to compete with them, but even to understand the most basic implications of the phenomenon. The banks’ problem is not competing with these types of companies, or at least, not for now. We talking here about vastly different magnitudes, of scale: a service with strong growth like Revolut, for example, expects to reach three million customers by next month, which is nothing to Santander’s more than 113 million customers in more than ten countries worldwide. The idea that fintech companies represent some kind of threat seems absurd, seen in the context of size. Obviously, this does not mean that the traditional banks should ignore the phenomenon — and they aren’t. Ignoring change and hoping that size will continue to matter is risky. The big banks are aware that the growth of the fintech phenomenon is mainly due to their own shortcomings, to the strong tendency towards industry isomorphism, ...
Read More
What Can Traditional Banks Learn From Fintech?

 

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European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offerings

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Crowdfund Insider | | Sep 5, 2018

A recent draft of legislation by the European Parliament pertaining to European Crowdfunding Service Providers (ECSP) indicates an interest in rolling in initial coin offerings (ICOs) along with more traditional securities. While still just a draft, the document shows a clear interest in empowering online investment platforms to list ICOs with a proposed amendment stating;

“In order to allow for a competitive Union framework, crowdfunding service providers should be permitted to raise capital through their platforms using certain cryptocurrencies. Initial Coin Offerings (ICOs) offer new and innovative ways of funding but can also generate substantial market fraud and cyber security risks to investors. Therefore, crowdfunding service providers that wish to offer an ICO through their platform, should comply with specific additional requirements under this Regulation.”

The proposed regulation is viewed as an opportunity to regulate ICOs. The EP draft states that issuers can prove their legitimacy by complying with the proposed regulations. While accepting the fact the proposed rules may fall short, the draft calls it a “much needed step towards imposing standards and protections in place for what is an excellent funding stream for startups.”

See:  Gibraltar: Where Is The Best Country To Launch An ICO – Switzerland Or Gibraltar?

On Tuesday this week, Members of European Parliament (MEPs) held a meeting to discuss ICOs as part of a subset of crowdfunding. According to Hogan Lovells, a law firm that is assisting in the draft legislation, the proposal is a “step in the right direction” that should legitimize and clarify rules for ICOs. The draft legislation was entered by UK MEP Ashley Fox. In discussing ICOs, at least one MEP sees merit in creating a third category beyond securities and commodities (find new definitions).

John Salmon, Hogan Lovells Technology Partner, stated;

“Having the certainty, but also having that legitimisation, I very much welcome having a European-wide proposal. I think it would be incredibly helpful to see that: it gives people the certainty to know … but we need to be clear whether this is a utility token or a transferable security, or how the regulatory regime comes within that. But I think it makes perfect sense because an ICO is another form of crowdfunding. It is different, but it is a form of crowdfunding.”

Continue to the full article --> here


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with fintech, alternative finance, blockchain, cryptocurrency, crowdfunding and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

Blockchain is here – so what next? The Blockchain Developer Opportunity If you are a software engineer interested in emerging high growth project opportunities, you’ll want to ensure your technical skills are polished and you have access to proper training and resources. There is a significant shortage of skilled Blockchain developers unable to meet the demand of emerging projects! NCFA is pleased to announce an inaugural educational partnership with the Blockchain Learning Group offering a special introductory rate to attend an immersive, 2-day Blockchain developer training course on decentralized application development to help fill the gap of skilled engineers while connecting graduates to project opportunities. According to a recent 2018 PwC survey, 84% of 600 executive responders confirmed some involvement with Blockchain technology from proof of concepts to well capitalized international scale-ups and incumbents looking to modernize legacy systems. Distributed and immutable ledger applications are evolving rapidly with uses cases that improve trust and transparency for many business processes while distributing transactions to a decentralized network in a way that reduces costs and eliminates intermediaries. While crypto markets have exceeded $200 billion in just the last 2 years alone, the underlying technology is forecasted to disrupt almost every vertical with ...
Read More
Immersive 2-day Blockchain Developer Training Course (Nov 10-11, Toronto): Decentralized Application Development
Incipient Industries | Steven Dryall | Sep 19, 2018 Incipient Industries Releases Whitepaper Describing How Cryptocommodities  Are Created and Used As The Basis For A Stable Cryptocurrency Toronto, ON, Canada, September 17, 2018 - Incipient Industries Inc. announces the release of the definitive whitepaper on the subject of cryptocommodities. Following years of development combined with the dissemination of information related to cryptocurrency viability and asset- based cryptocurrencies, an actual description of how to deploy a cryptocommodity  is now available. This is a first in the burgeoning cryptocurrency industry and represents a significant step towards a stabilized digital economy. The cryptocurrency industry is still developing and discovering ways to integrate with traditional financial systems or to replace them altogether. The introduction of cryptocoomodities into the cryptosphere creates a new category of opportunities for pioneers in the space. For those seeking a solution to a stable cryptocurrency, this is the best path to success. See:  3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith “This is a perfect use case for cryptocurrency and also follows the Three Pillars of a Viable Cryptocurrency framework.” says Steven Dryall, CEO of Incipient Industries, who has pioneered several key concepts of ...
Read More
Whitepaper Provides Information About Cryptocommodities As The Basis For A Stable Cryptocurrency
Bloomberg | Joshua Brustein | Sep 4, 2018 With fewer than 100 residents, Ocean Falls is looking for a revival after almost four decades of industrial false starts. In 1971, an 11th grader named Greg Strebel wrote the introduction to a book about Ocean Falls, the tiny town in the British Columbian hinterlands where he lived. Strebel mentioned the odd fact that many of the town’s roads were made of wood, said the weather wasn’t as bad as some people made it out to be and noted that it had just gotten a new school building. But the one thing that mattered above all, according to Strebel, was the paper mill. “To most, 'the mill’ imparts a sense of security by its presence,” he wrote. “A low throb of power is audible throughout most of the town as long as the mill runs, accompanied by voluminous exhalations of steam.” The security provided by the mill turned out to be fleeting. It went silent when Strebel was in his 20s. Most of the buildings in Ocean Falls that haven’t been demolished over the decades are crumbling in place, and Strebel, along with most everyone who once lived there, is long gone. A ...
Read More
The Bitcoin Boom Reaches a Canadian Ghost Town
Australian Financial Review | Michael Bailey | Sep 12, 2018 Businesses wishing to raise money from retail investors will no longer have to convert to an unlisted public company structure, after an amendment to 2017's equity crowdfunding legislation passed federal Parliament. The legislation, which takes effect in 28 days from Wednesday, allows proprietary companies or unlisted public companies with annual turnover or gross assets of up to $25 million to advertise their business plans on ASIC-licensed crowdfunding portals, and raise up to $5 million a year to carry them out. Investors can put up to $10,000 a year each into an unlimited number of ideas. Australian private companies are typically limited to a maximum of 50 non-employee shareholders. However, under these reforms, investors acquiring shares through a crowdfunding portal are excluded from this cap, allowing private companies to raise funds from potentially hundreds or thousands of investors. See:  Australia and UK set up FinTech Bridge to deepen collaboration between governments, regulators, and industry bodies Proprietary companies with crowdfunded shareholders will have to prepare annual financial and directors' reports in accordance with accounting standards. Only large proprietary companies, defined as those with any two of either $25 million turnover or above, $12.5 million of gross ...
Read More
$5 million Equity crowdfunding extended to private companies
NCFA Sponsored guest post | Sep 18, 2018 “You are such a worry-wart.” This is the common reaction I get whenever I tell people about how I like to plan ahead. They tell me that I’m too overreacting, that I live too much for the future and not for the present, and that I really don’t get the concept of YOLO. I really don’t give a darn about what these people say. They’re impractically wasting their time, breath, and energy trying to change how I live my life. What if I’m so gung-ho about planning for the future? What if I’m too overly prepared even my future dogs and cats will be feasting every single day? It’s still better than having no insurance. It’s still better than having my children carry my weight. Lastly, it’s still better than being ill-prepared. See:  What Can Traditional Banks Learn From Fintech? If I were to choose between too much and too little, I’d choose too much any day. After all, what’s wrong with having so much you could spare a ton? It’s a thousand times better than having to ask for financial aid because you have so little. Do you get me? I ...
Read More
Why Life Insurance Policies Matter
Forbes | Michael del Castillo | Sep 17, 2018 People keep asking me, what’s the deal with stablecoins? With two prominent regulatory approvals to issue the blockchain-based tokens, many have heralded them as the next evolution of cryptocurrency, while others say they’re perfect evidence of why no one ever needed cryptocurrency in the first place. On a basic level, a stablecoin is a token that has a mechanism in place to minimize its price fluctuations. Unlike traditional cryptocurrencies such as bitcoin and ether, which are directly tied to their wildly fluctuating demand, a stablecoin can rely on four methods to constrain its fluctuations. See:  One SEC commissioner is establishing herself as the voice of innovation for the crypto market The first and by far most popular way to achieve this stability is to peg the price of the token to a more stable asset like the U.S. dollar. This is what both the Gemini and Paxos cryptocurrency exchanges received permission to do from the New York Department of Financial Services last week. Unlike bitcoin and ethereum, which are created through a mining process that also ensures the blockchain’s accuracy, these stablecoins are only created when someone buys them with U.S. dollars. Gemini and Paxos ...
Read More
3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith
NCFA Canada | Sep 14, 2018 Ep9-Sep 14: Curexe's New SmartPay Product & Front-line of Global Digital Payments About this episode:  On this episode our host Manseeb Khan sits down with the CEO And founder of Curexe, so chat about their new product called SmartPay! They also talked about how A.I is going to touch the payments and every other industry, regulations that could be in place when accepting crypto and many more. Enjoy! Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest: Johnathan Holland, Founder and CEO, Curexe Bio:  Johnathan Holland's experience comes from a decade of learning about capital markets and a relentless pursuit of providing better customer experiences in the payments and currency exchange industry. Johnathan’s advantage has been to look at the currency exchange industry in a new light, which enabled him to create a new, better way to empower the businesses that are underserved by their current solutions.  Johnathan graduated from the 2016 cohort of the Next 36 accelerator program that helps young entrepreneurs build high impact businesses and is currently running the company out of the DMZ.  LinkedIn profile Join NCFA's weekly Podcast series 'FINTECH FRIDAY$' where we sit down with the incredible people ...
Read More
FINTECH FRIDAY$ (EP.9-Sep 14):  Curexe's New SmartPay Product & Front-line of Global Digital Payments with Johnathan Holland, Founder of Curexe
Bloomberg | By Natalie Wong and Gerrit De Vynck | June 20, 2018 A cryptocurrency baron has bought the largest and one of the most expensive condos in Canada, paying for it partly with digital money. Anthony Di Iorio purchased the three-story penthouse for C$28 million ($21 million) at the St. Regis Residences Toronto, the former Trump International Hotel & Tower in the downtown business district. The unit totals 16,178 square feet (1,502 square meters) and includes a wrap-around patio overlooking the city’s skyline at the corner of Bay and Adelaide Streets. Di Iorio didn’t take out a mortgage for the property because he doesn’t “like being in debt.” Instead, he cashed out some of his cryptocurrency and made a wire transfer to pay the price. “I don’t remember exactly which ones I cashed in but this is my safety net, real estate right?” he said in an interview with Bloomberg at his new condo. He now owns two condos units in Toronto for a total investment of about C$34 million, he said. “I decided to take a bunch out and put it in real estate.” The hotel is owned by InnVest Hotels LP and operated by Marriott International Inc. as ...
Read More
Crypto Pioneer Buys Penthouse in Former Toronto Trump Tower
Computer Weekly | Karl Flinders | Sep 13, 2018 A Tech Nation programme to support the UK's financial technology startups demonstrates the increasingly diverse range of business-to-business products and services available through the country's fintech community Financial technology (fintech) is providing a market where IT professionals in the finance sector and beyond can find answers to their business challenges through specialist tech startups. UK-based CIOs have the benefit of having these fintech startups on their doorstep. UK government-backed startup network Tech Nation has selected 20 such fintech startups to take part in a five-month programme that aims to scale up early-stage companies. The programme’s business-to-business (B2B) focus demonstrates that beyond the high-profile digital challenger banks and payments companies targeting consumers with funky apps, there is a deep source of niche financial services IT innovation in the UK. Fintech solutions begin life as an idea about how to use technology to solve a particular financial services problem. The speed of software development today means products can quickly follow. See:  UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany But the challenges really begin when it comes to turning a great idea into a commercial success. This is where the likes ...
Read More
Tech Nation startup programme demonstrates richness of UK fintech
Forbes | Enrique Dans | Sep 5, 2018 The growing popularity of fintech and the emergence of competitors in different phases of the cycle, from new banks such as Germany’s N26 to partial service providers such as Revolut and others, or niche competitors such as Shine, highlights not just the inability of traditional banking to compete with them, but even to understand the most basic implications of the phenomenon. The banks’ problem is not competing with these types of companies, or at least, not for now. We talking here about vastly different magnitudes, of scale: a service with strong growth like Revolut, for example, expects to reach three million customers by next month, which is nothing to Santander’s more than 113 million customers in more than ten countries worldwide. The idea that fintech companies represent some kind of threat seems absurd, seen in the context of size. Obviously, this does not mean that the traditional banks should ignore the phenomenon — and they aren’t. Ignoring change and hoping that size will continue to matter is risky. The big banks are aware that the growth of the fintech phenomenon is mainly due to their own shortcomings, to the strong tendency towards industry isomorphism, ...
Read More
What Can Traditional Banks Learn From Fintech?

 

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Swiss watchdog to propose looser anti-money laundering rules for fintechs

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Reuters | Brenna Hughes Neghaiwi  | Aug 28, 2018

ZURICH (Reuters) - Swiss financial regulator FINMA is planning to loosen anti-money laundering rules for smaller financial technology firms, part of a drive to boost innovation and shore up the country’s position as a leading money management hub.
The revisions, prompted by a new ‘fintech’ licensing category carved out by the Swiss parliament in June, will clarify how non-banks applying for the new license must ensure due diligence.

“As a rule, all financial institutions are subject to similar due-diligence requirements relating to combating money laundering. However, as most fintech license applicants are likely to be smaller institutions, FINMA proposes to introduce some organizational relaxations for such institutions,” the financial supervisor said in a statement on Tuesday.

Its proposal defines small institutions as those with gross revenues under 1.5 million Swiss francs ($1.5 million).

Under its terms small institutions, unlike banks, will not for instance have to establish an independent anti-money laundering unit with monitoring duties, it said.

The move comes after Switzerland’s parliament voted in June to amend the Swiss Banking Act, creating a new fintech license category to ease rules imposed on financial endeavors that take in funds and provide certain bank-like functions, but do not make money by investing or receiving interest on the funds.

See:  Comprehensive Overview of Fintech in Switzerland H1 2018

Switzerland, the world’s largest center for offshore wealth, has gained prominence in recent years as a hub for financial technology providers, such as banking software groups Temenos (TEMN.S) and Avaloq AVLN.S, as well as cryptocurrency projects.

But advocates have warned that as banks face increasing margin pressure and tougher competition from technological rivals, more must be done to promote innovation if Switzerland is to remain a leading financial hub.

The new license, intended to promote financial innovation, will apply to groups which accept public deposits of up to 100 million francs but don’t invest the funds or pay interest.

It will likely have the biggest immediate impact on activities such as crowdfunding, which under current rules could often require a banking license.

Cryptocurrency projects — which often fall under anti-money laundering or securities regulations under FINMA’s current guidelines but generally don’t require a banking license — are unlikely to be affected by the changes.

Continue to the full article --> here


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with fintech, alternative finance, blockchain, cryptocurrency, crowdfunding and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

Blockchain is here – so what next? The Blockchain Developer Opportunity If you are a software engineer interested in emerging high growth project opportunities, you’ll want to ensure your technical skills are polished and you have access to proper training and resources. There is a significant shortage of skilled Blockchain developers unable to meet the demand of emerging projects! NCFA is pleased to announce an inaugural educational partnership with the Blockchain Learning Group offering a special introductory rate to attend an immersive, 2-day Blockchain developer training course on decentralized application development to help fill the gap of skilled engineers while connecting graduates to project opportunities. According to a recent 2018 PwC survey, 84% of 600 executive responders confirmed some involvement with Blockchain technology from proof of concepts to well capitalized international scale-ups and incumbents looking to modernize legacy systems. Distributed and immutable ledger applications are evolving rapidly with uses cases that improve trust and transparency for many business processes while distributing transactions to a decentralized network in a way that reduces costs and eliminates intermediaries. While crypto markets have exceeded $200 billion in just the last 2 years alone, the underlying technology is forecasted to disrupt almost every vertical with ...
Read More
Immersive 2-day Blockchain Developer Training Course (Nov 10-11, Toronto): Decentralized Application Development
Incipient Industries | Steven Dryall | Sep 19, 2018 Incipient Industries Releases Whitepaper Describing How Cryptocommodities  Are Created and Used As The Basis For A Stable Cryptocurrency Toronto, ON, Canada, September 17, 2018 - Incipient Industries Inc. announces the release of the definitive whitepaper on the subject of cryptocommodities. Following years of development combined with the dissemination of information related to cryptocurrency viability and asset- based cryptocurrencies, an actual description of how to deploy a cryptocommodity  is now available. This is a first in the burgeoning cryptocurrency industry and represents a significant step towards a stabilized digital economy. The cryptocurrency industry is still developing and discovering ways to integrate with traditional financial systems or to replace them altogether. The introduction of cryptocoomodities into the cryptosphere creates a new category of opportunities for pioneers in the space. For those seeking a solution to a stable cryptocurrency, this is the best path to success. See:  3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith “This is a perfect use case for cryptocurrency and also follows the Three Pillars of a Viable Cryptocurrency framework.” says Steven Dryall, CEO of Incipient Industries, who has pioneered several key concepts of ...
Read More
Whitepaper Provides Information About Cryptocommodities As The Basis For A Stable Cryptocurrency
Bloomberg | Joshua Brustein | Sep 4, 2018 With fewer than 100 residents, Ocean Falls is looking for a revival after almost four decades of industrial false starts. In 1971, an 11th grader named Greg Strebel wrote the introduction to a book about Ocean Falls, the tiny town in the British Columbian hinterlands where he lived. Strebel mentioned the odd fact that many of the town’s roads were made of wood, said the weather wasn’t as bad as some people made it out to be and noted that it had just gotten a new school building. But the one thing that mattered above all, according to Strebel, was the paper mill. “To most, 'the mill’ imparts a sense of security by its presence,” he wrote. “A low throb of power is audible throughout most of the town as long as the mill runs, accompanied by voluminous exhalations of steam.” The security provided by the mill turned out to be fleeting. It went silent when Strebel was in his 20s. Most of the buildings in Ocean Falls that haven’t been demolished over the decades are crumbling in place, and Strebel, along with most everyone who once lived there, is long gone. A ...
Read More
The Bitcoin Boom Reaches a Canadian Ghost Town
Australian Financial Review | Michael Bailey | Sep 12, 2018 Businesses wishing to raise money from retail investors will no longer have to convert to an unlisted public company structure, after an amendment to 2017's equity crowdfunding legislation passed federal Parliament. The legislation, which takes effect in 28 days from Wednesday, allows proprietary companies or unlisted public companies with annual turnover or gross assets of up to $25 million to advertise their business plans on ASIC-licensed crowdfunding portals, and raise up to $5 million a year to carry them out. Investors can put up to $10,000 a year each into an unlimited number of ideas. Australian private companies are typically limited to a maximum of 50 non-employee shareholders. However, under these reforms, investors acquiring shares through a crowdfunding portal are excluded from this cap, allowing private companies to raise funds from potentially hundreds or thousands of investors. See:  Australia and UK set up FinTech Bridge to deepen collaboration between governments, regulators, and industry bodies Proprietary companies with crowdfunded shareholders will have to prepare annual financial and directors' reports in accordance with accounting standards. Only large proprietary companies, defined as those with any two of either $25 million turnover or above, $12.5 million of gross ...
Read More
$5 million Equity crowdfunding extended to private companies
NCFA Sponsored guest post | Sep 18, 2018 “You are such a worry-wart.” This is the common reaction I get whenever I tell people about how I like to plan ahead. They tell me that I’m too overreacting, that I live too much for the future and not for the present, and that I really don’t get the concept of YOLO. I really don’t give a darn about what these people say. They’re impractically wasting their time, breath, and energy trying to change how I live my life. What if I’m so gung-ho about planning for the future? What if I’m too overly prepared even my future dogs and cats will be feasting every single day? It’s still better than having no insurance. It’s still better than having my children carry my weight. Lastly, it’s still better than being ill-prepared. See:  What Can Traditional Banks Learn From Fintech? If I were to choose between too much and too little, I’d choose too much any day. After all, what’s wrong with having so much you could spare a ton? It’s a thousand times better than having to ask for financial aid because you have so little. Do you get me? I ...
Read More
Why Life Insurance Policies Matter
Forbes | Michael del Castillo | Sep 17, 2018 People keep asking me, what’s the deal with stablecoins? With two prominent regulatory approvals to issue the blockchain-based tokens, many have heralded them as the next evolution of cryptocurrency, while others say they’re perfect evidence of why no one ever needed cryptocurrency in the first place. On a basic level, a stablecoin is a token that has a mechanism in place to minimize its price fluctuations. Unlike traditional cryptocurrencies such as bitcoin and ether, which are directly tied to their wildly fluctuating demand, a stablecoin can rely on four methods to constrain its fluctuations. See:  One SEC commissioner is establishing herself as the voice of innovation for the crypto market The first and by far most popular way to achieve this stability is to peg the price of the token to a more stable asset like the U.S. dollar. This is what both the Gemini and Paxos cryptocurrency exchanges received permission to do from the New York Department of Financial Services last week. Unlike bitcoin and ethereum, which are created through a mining process that also ensures the blockchain’s accuracy, these stablecoins are only created when someone buys them with U.S. dollars. Gemini and Paxos ...
Read More
3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith
NCFA Canada | Sep 14, 2018 Ep9-Sep 14: Curexe's New SmartPay Product & Front-line of Global Digital Payments About this episode:  On this episode our host Manseeb Khan sits down with the CEO And founder of Curexe, so chat about their new product called SmartPay! They also talked about how A.I is going to touch the payments and every other industry, regulations that could be in place when accepting crypto and many more. Enjoy! Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest: Johnathan Holland, Founder and CEO, Curexe Bio:  Johnathan Holland's experience comes from a decade of learning about capital markets and a relentless pursuit of providing better customer experiences in the payments and currency exchange industry. Johnathan’s advantage has been to look at the currency exchange industry in a new light, which enabled him to create a new, better way to empower the businesses that are underserved by their current solutions.  Johnathan graduated from the 2016 cohort of the Next 36 accelerator program that helps young entrepreneurs build high impact businesses and is currently running the company out of the DMZ.  LinkedIn profile Join NCFA's weekly Podcast series 'FINTECH FRIDAY$' where we sit down with the incredible people ...
Read More
FINTECH FRIDAY$ (EP.9-Sep 14):  Curexe's New SmartPay Product & Front-line of Global Digital Payments with Johnathan Holland, Founder of Curexe
Bloomberg | By Natalie Wong and Gerrit De Vynck | June 20, 2018 A cryptocurrency baron has bought the largest and one of the most expensive condos in Canada, paying for it partly with digital money. Anthony Di Iorio purchased the three-story penthouse for C$28 million ($21 million) at the St. Regis Residences Toronto, the former Trump International Hotel & Tower in the downtown business district. The unit totals 16,178 square feet (1,502 square meters) and includes a wrap-around patio overlooking the city’s skyline at the corner of Bay and Adelaide Streets. Di Iorio didn’t take out a mortgage for the property because he doesn’t “like being in debt.” Instead, he cashed out some of his cryptocurrency and made a wire transfer to pay the price. “I don’t remember exactly which ones I cashed in but this is my safety net, real estate right?” he said in an interview with Bloomberg at his new condo. He now owns two condos units in Toronto for a total investment of about C$34 million, he said. “I decided to take a bunch out and put it in real estate.” The hotel is owned by InnVest Hotels LP and operated by Marriott International Inc. as ...
Read More
Crypto Pioneer Buys Penthouse in Former Toronto Trump Tower
Computer Weekly | Karl Flinders | Sep 13, 2018 A Tech Nation programme to support the UK's financial technology startups demonstrates the increasingly diverse range of business-to-business products and services available through the country's fintech community Financial technology (fintech) is providing a market where IT professionals in the finance sector and beyond can find answers to their business challenges through specialist tech startups. UK-based CIOs have the benefit of having these fintech startups on their doorstep. UK government-backed startup network Tech Nation has selected 20 such fintech startups to take part in a five-month programme that aims to scale up early-stage companies. The programme’s business-to-business (B2B) focus demonstrates that beyond the high-profile digital challenger banks and payments companies targeting consumers with funky apps, there is a deep source of niche financial services IT innovation in the UK. Fintech solutions begin life as an idea about how to use technology to solve a particular financial services problem. The speed of software development today means products can quickly follow. See:  UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany But the challenges really begin when it comes to turning a great idea into a commercial success. This is where the likes ...
Read More
Tech Nation startup programme demonstrates richness of UK fintech
Forbes | Enrique Dans | Sep 5, 2018 The growing popularity of fintech and the emergence of competitors in different phases of the cycle, from new banks such as Germany’s N26 to partial service providers such as Revolut and others, or niche competitors such as Shine, highlights not just the inability of traditional banking to compete with them, but even to understand the most basic implications of the phenomenon. The banks’ problem is not competing with these types of companies, or at least, not for now. We talking here about vastly different magnitudes, of scale: a service with strong growth like Revolut, for example, expects to reach three million customers by next month, which is nothing to Santander’s more than 113 million customers in more than ten countries worldwide. The idea that fintech companies represent some kind of threat seems absurd, seen in the context of size. Obviously, this does not mean that the traditional banks should ignore the phenomenon — and they aren’t. Ignoring change and hoping that size will continue to matter is risky. The big banks are aware that the growth of the fintech phenomenon is mainly due to their own shortcomings, to the strong tendency towards industry isomorphism, ...
Read More
What Can Traditional Banks Learn From Fintech?

 

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Canada Delays Regulation of Cryptocurrencies and Blockchain Companies

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Bitcoin Magazine | Jessie Willms | Aug 28, 2018

The Canadian government has postponed the release of its final regulations for cryptocurrency and blockchain companies. The final published regulations were due this fall, but the government now says they won’t be published in the Canada Gazette until late 2019.

Because the federal government is already in pre-election mode ahead of the 2019 election, the final cryptocurrency or “virtual currency” regulations have effectively been put on hold, leaving the current regulatory regime in place until well into 2020, as there is an additional 12-month period after publication for any new regulations to take effect.

Some companies in the space see this as a positive for the industry’s competitiveness as the government is effectively backing away from the stricter rules proposed in the draft version published in June 2018.

Others are concerned that this delay will harm their competitive position in the quickly growing international crypto market, where countries like Switzerland and Malta are actively encouraging crypto businesses with few regulations and a favorable tax regime.

See:  Why blockchain technology is flourishing in Metro Vancouver—and how it will change your life

The Blockchain Association of Canada (BAC) told Bitcoin Magazine that it appreciates that the government is proceeding with caution, in recognition of the complexities of this new, evolving sector.

“The decision to delay the proposed regulations bodes well for the Canadian blockchain and cryptocurrency space. The government is committed to an innovation agenda and sometimes … it may be best to observe and intervene as little as possible,” said BAC Executive Director Kyle Kemper.

Large Volume of Submissions From the Crypto Sector

According to a number of participants, the sheer volume and quality of the comments and responses by the industry to the proposed regulatory package likely contributed to the government's decision to hold off on publishing until next year.

Cryptocurrencies and blockchain companies and organizations, like the Money Services Business Association, were invited to submit comments and attend meetings with Finance Canada officials.

BRI Calls for a Central Regulatory Body Comparable to the SEC

One set of comments submitted to the federal finance department included a report from the influential Toronto-based Blockchain Research Institute (BRI).

The BRI assembled a round table of 70 participants from the industry and submitted a report with carefully thought out, detailed recommendations.

The report says there’s substantive regulatory work that needs to be done to create certainty and build a competitive industry, although the participants called for a middle ground, saying:

“... as the blockchain revolution unfolds, regulators would be wise to avoid the chainsaw when microsurgery could do. To be sure, we do not want the Wild West.”

The BRI report points out that Canada is the only developed federal democracy that does not have a securities regulatory authority at the federal government level and recommends creating a central regulatory body at the federal level like the U.S. Securities and Exchange Commission (SEC).

See:  Don Tapscott urges ‘sensible’ cryptocurrency regulations

Instead, “ten provinces, three territories, and the federal government all juggle responsibility for ensuring capital market functions efficiently and honestly — attempting to keep a watchful eye on issuers, investors, investment dealers and other market players.”

“This model was set up to oversee a much simpler world where there were actual traders on stock exchange floors, and where the pace of innovation in capital markets was glacial and regionally confined,” adds the report.

Continuing Uncertainty in the Crypto Sector

Coinsquare Exchange CEO Cole Diamond, as a member of the BRI’s Advisory Committee, made the case for more regulatory clarity. He told Bitcoin Magazine:

“I don’t think that delaying regulatory clarity is a good thing. At the same time, I understand how complex this market is. The regulators are still learning, and I can assure everyone that they are trying.”

“My hat goes off to the OSC Launchpad, the Ministry of Finance and others for their focus on the market. We look forward to continuing to work with them to bring about opportunities for Canadian businesses to lead globally in this exciting space.”

Evan Thomas, a Toronto-based lawyer working with crypto startups on regulations and compliance, also thinks that there needs to be some serious work done on regulating cryptocurrencies and blockchain companies.

See: 

Thomas told Bitcoin Magazine:

“Delay can put Canadian businesses at a competitive disadvantage. Other jurisdictions are moving more quickly to establish regulatory frameworks around crypto, to the extent those frameworks don't already exist.

“Until the regulations are final, it will be challenging for Canadian crypto businesses to establish critical banking and other relationships because many financial sector players are waiting for a regulatory framework to be in place. The longer the delay, the harder it may be for the industry to grow in the meantime.”

Continue to the full article --> here


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with fintech, alternative finance, blockchain, cryptocurrency, crowdfunding and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

Blockchain is here – so what next? The Blockchain Developer Opportunity If you are a software engineer interested in emerging high growth project opportunities, you’ll want to ensure your technical skills are polished and you have access to proper training and resources. There is a significant shortage of skilled Blockchain developers unable to meet the demand of emerging projects! NCFA is pleased to announce an inaugural educational partnership with the Blockchain Learning Group offering a special introductory rate to attend an immersive, 2-day Blockchain developer training course on decentralized application development to help fill the gap of skilled engineers while connecting graduates to project opportunities. According to a recent 2018 PwC survey, 84% of 600 executive responders confirmed some involvement with Blockchain technology from proof of concepts to well capitalized international scale-ups and incumbents looking to modernize legacy systems. Distributed and immutable ledger applications are evolving rapidly with uses cases that improve trust and transparency for many business processes while distributing transactions to a decentralized network in a way that reduces costs and eliminates intermediaries. While crypto markets have exceeded $200 billion in just the last 2 years alone, the underlying technology is forecasted to disrupt almost every vertical with ...
Read More
Immersive 2-day Blockchain Developer Training Course (Nov 10-11, Toronto): Decentralized Application Development
Incipient Industries | Steven Dryall | Sep 19, 2018 Incipient Industries Releases Whitepaper Describing How Cryptocommodities  Are Created and Used As The Basis For A Stable Cryptocurrency Toronto, ON, Canada, September 17, 2018 - Incipient Industries Inc. announces the release of the definitive whitepaper on the subject of cryptocommodities. Following years of development combined with the dissemination of information related to cryptocurrency viability and asset- based cryptocurrencies, an actual description of how to deploy a cryptocommodity  is now available. This is a first in the burgeoning cryptocurrency industry and represents a significant step towards a stabilized digital economy. The cryptocurrency industry is still developing and discovering ways to integrate with traditional financial systems or to replace them altogether. The introduction of cryptocoomodities into the cryptosphere creates a new category of opportunities for pioneers in the space. For those seeking a solution to a stable cryptocurrency, this is the best path to success. See:  3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith “This is a perfect use case for cryptocurrency and also follows the Three Pillars of a Viable Cryptocurrency framework.” says Steven Dryall, CEO of Incipient Industries, who has pioneered several key concepts of ...
Read More
Whitepaper Provides Information About Cryptocommodities As The Basis For A Stable Cryptocurrency
Bloomberg | Joshua Brustein | Sep 4, 2018 With fewer than 100 residents, Ocean Falls is looking for a revival after almost four decades of industrial false starts. In 1971, an 11th grader named Greg Strebel wrote the introduction to a book about Ocean Falls, the tiny town in the British Columbian hinterlands where he lived. Strebel mentioned the odd fact that many of the town’s roads were made of wood, said the weather wasn’t as bad as some people made it out to be and noted that it had just gotten a new school building. But the one thing that mattered above all, according to Strebel, was the paper mill. “To most, 'the mill’ imparts a sense of security by its presence,” he wrote. “A low throb of power is audible throughout most of the town as long as the mill runs, accompanied by voluminous exhalations of steam.” The security provided by the mill turned out to be fleeting. It went silent when Strebel was in his 20s. Most of the buildings in Ocean Falls that haven’t been demolished over the decades are crumbling in place, and Strebel, along with most everyone who once lived there, is long gone. A ...
Read More
The Bitcoin Boom Reaches a Canadian Ghost Town
Australian Financial Review | Michael Bailey | Sep 12, 2018 Businesses wishing to raise money from retail investors will no longer have to convert to an unlisted public company structure, after an amendment to 2017's equity crowdfunding legislation passed federal Parliament. The legislation, which takes effect in 28 days from Wednesday, allows proprietary companies or unlisted public companies with annual turnover or gross assets of up to $25 million to advertise their business plans on ASIC-licensed crowdfunding portals, and raise up to $5 million a year to carry them out. Investors can put up to $10,000 a year each into an unlimited number of ideas. Australian private companies are typically limited to a maximum of 50 non-employee shareholders. However, under these reforms, investors acquiring shares through a crowdfunding portal are excluded from this cap, allowing private companies to raise funds from potentially hundreds or thousands of investors. See:  Australia and UK set up FinTech Bridge to deepen collaboration between governments, regulators, and industry bodies Proprietary companies with crowdfunded shareholders will have to prepare annual financial and directors' reports in accordance with accounting standards. Only large proprietary companies, defined as those with any two of either $25 million turnover or above, $12.5 million of gross ...
Read More
$5 million Equity crowdfunding extended to private companies
NCFA Sponsored guest post | Sep 18, 2018 “You are such a worry-wart.” This is the common reaction I get whenever I tell people about how I like to plan ahead. They tell me that I’m too overreacting, that I live too much for the future and not for the present, and that I really don’t get the concept of YOLO. I really don’t give a darn about what these people say. They’re impractically wasting their time, breath, and energy trying to change how I live my life. What if I’m so gung-ho about planning for the future? What if I’m too overly prepared even my future dogs and cats will be feasting every single day? It’s still better than having no insurance. It’s still better than having my children carry my weight. Lastly, it’s still better than being ill-prepared. See:  What Can Traditional Banks Learn From Fintech? If I were to choose between too much and too little, I’d choose too much any day. After all, what’s wrong with having so much you could spare a ton? It’s a thousand times better than having to ask for financial aid because you have so little. Do you get me? I ...
Read More
Why Life Insurance Policies Matter
Forbes | Michael del Castillo | Sep 17, 2018 People keep asking me, what’s the deal with stablecoins? With two prominent regulatory approvals to issue the blockchain-based tokens, many have heralded them as the next evolution of cryptocurrency, while others say they’re perfect evidence of why no one ever needed cryptocurrency in the first place. On a basic level, a stablecoin is a token that has a mechanism in place to minimize its price fluctuations. Unlike traditional cryptocurrencies such as bitcoin and ether, which are directly tied to their wildly fluctuating demand, a stablecoin can rely on four methods to constrain its fluctuations. See:  One SEC commissioner is establishing herself as the voice of innovation for the crypto market The first and by far most popular way to achieve this stability is to peg the price of the token to a more stable asset like the U.S. dollar. This is what both the Gemini and Paxos cryptocurrency exchanges received permission to do from the New York Department of Financial Services last week. Unlike bitcoin and ethereum, which are created through a mining process that also ensures the blockchain’s accuracy, these stablecoins are only created when someone buys them with U.S. dollars. Gemini and Paxos ...
Read More
3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith
NCFA Canada | Sep 14, 2018 Ep9-Sep 14: Curexe's New SmartPay Product & Front-line of Global Digital Payments About this episode:  On this episode our host Manseeb Khan sits down with the CEO And founder of Curexe, so chat about their new product called SmartPay! They also talked about how A.I is going to touch the payments and every other industry, regulations that could be in place when accepting crypto and many more. Enjoy! Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest: Johnathan Holland, Founder and CEO, Curexe Bio:  Johnathan Holland's experience comes from a decade of learning about capital markets and a relentless pursuit of providing better customer experiences in the payments and currency exchange industry. Johnathan’s advantage has been to look at the currency exchange industry in a new light, which enabled him to create a new, better way to empower the businesses that are underserved by their current solutions.  Johnathan graduated from the 2016 cohort of the Next 36 accelerator program that helps young entrepreneurs build high impact businesses and is currently running the company out of the DMZ.  LinkedIn profile Join NCFA's weekly Podcast series 'FINTECH FRIDAY$' where we sit down with the incredible people ...
Read More
FINTECH FRIDAY$ (EP.9-Sep 14):  Curexe's New SmartPay Product & Front-line of Global Digital Payments with Johnathan Holland, Founder of Curexe
Bloomberg | By Natalie Wong and Gerrit De Vynck | June 20, 2018 A cryptocurrency baron has bought the largest and one of the most expensive condos in Canada, paying for it partly with digital money. Anthony Di Iorio purchased the three-story penthouse for C$28 million ($21 million) at the St. Regis Residences Toronto, the former Trump International Hotel & Tower in the downtown business district. The unit totals 16,178 square feet (1,502 square meters) and includes a wrap-around patio overlooking the city’s skyline at the corner of Bay and Adelaide Streets. Di Iorio didn’t take out a mortgage for the property because he doesn’t “like being in debt.” Instead, he cashed out some of his cryptocurrency and made a wire transfer to pay the price. “I don’t remember exactly which ones I cashed in but this is my safety net, real estate right?” he said in an interview with Bloomberg at his new condo. He now owns two condos units in Toronto for a total investment of about C$34 million, he said. “I decided to take a bunch out and put it in real estate.” The hotel is owned by InnVest Hotels LP and operated by Marriott International Inc. as ...
Read More
Crypto Pioneer Buys Penthouse in Former Toronto Trump Tower
Computer Weekly | Karl Flinders | Sep 13, 2018 A Tech Nation programme to support the UK's financial technology startups demonstrates the increasingly diverse range of business-to-business products and services available through the country's fintech community Financial technology (fintech) is providing a market where IT professionals in the finance sector and beyond can find answers to their business challenges through specialist tech startups. UK-based CIOs have the benefit of having these fintech startups on their doorstep. UK government-backed startup network Tech Nation has selected 20 such fintech startups to take part in a five-month programme that aims to scale up early-stage companies. The programme’s business-to-business (B2B) focus demonstrates that beyond the high-profile digital challenger banks and payments companies targeting consumers with funky apps, there is a deep source of niche financial services IT innovation in the UK. Fintech solutions begin life as an idea about how to use technology to solve a particular financial services problem. The speed of software development today means products can quickly follow. See:  UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany But the challenges really begin when it comes to turning a great idea into a commercial success. This is where the likes ...
Read More
Tech Nation startup programme demonstrates richness of UK fintech
Forbes | Enrique Dans | Sep 5, 2018 The growing popularity of fintech and the emergence of competitors in different phases of the cycle, from new banks such as Germany’s N26 to partial service providers such as Revolut and others, or niche competitors such as Shine, highlights not just the inability of traditional banking to compete with them, but even to understand the most basic implications of the phenomenon. The banks’ problem is not competing with these types of companies, or at least, not for now. We talking here about vastly different magnitudes, of scale: a service with strong growth like Revolut, for example, expects to reach three million customers by next month, which is nothing to Santander’s more than 113 million customers in more than ten countries worldwide. The idea that fintech companies represent some kind of threat seems absurd, seen in the context of size. Obviously, this does not mean that the traditional banks should ignore the phenomenon — and they aren’t. Ignoring change and hoping that size will continue to matter is risky. The big banks are aware that the growth of the fintech phenomenon is mainly due to their own shortcomings, to the strong tendency towards industry isomorphism, ...
Read More
What Can Traditional Banks Learn From Fintech?

 

Share

Regulating Disruption

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Mowat Centre | Sunil Johal and Michael Crawford Urban | May 11, 2017

Governing in an era of rapid technological change:  In this report, the Mowat Centre examines the relationship between regulation and innovation in rapidly-changing technological industries. Building on this analysis and informed by examples from other jurisdictions, the authors suggest a suite of reforms to Canada’s regulatory frameworks and development processes aimed at enabling them to become more encouraging of innovation.

Executive Summary

Governments across the world are scrambling to respond to the arrival of innovative new digital services such as Uber, Netflix and Airbnb. While these services promise great benefits for Canadians, they also pose novel regulatory challenges to how governments are structured, engage with stakeholders and hire and train their staff.

How should governments regulate global services headquartered in other jurisdictions but available digitally within Canada? How can governments engage and encourage innovators and balance their needs with other stakeholders when government agencies struggle to hire and retain personnel who understand the technical issues involved? How can regulators successfully reconcile the deliberate pace of regulatory processes with the accelerating speed of innovation?

See: 

Identifying solutions to these questions will be a vital step towards securing Canada’s prosperity in the digital age. Other countries have already launched serious efforts aimed at reducing the burden of regulation as well as other measures designed to make their regulatory systems more innovation-friendly. Without renewed attention to this issue, Canada risks being left behind.

This report argues that Canadian governments can and should undertake a serious and sustained effort to bring their regulatory practices and culture out of the industrial age and into the digital age. Canadian governments have the opportunity to significantly boost innovation in several exciting ways, ranging from a greater embrace of design thinking in their regulatory design processes, to the initiation of programs for enhancing technological capacity within government, to the development of new tools to ensure vigorous competition in digital markets. By leveraging these opportunities, governments can make a significant and positive contribution to Canada’s future and ensure Canadians are well-positioned to promote and reap the benefits of innovation.

Continue to download PDF --> here

 


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with fintech, alternative finance, blockchain, cryptocurrency, crowdfunding and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

Blockchain is here – so what next? The Blockchain Developer Opportunity If you are a software engineer interested in emerging high growth project opportunities, you’ll want to ensure your technical skills are polished and you have access to proper training and resources. There is a significant shortage of skilled Blockchain developers unable to meet the demand of emerging projects! NCFA is pleased to announce an inaugural educational partnership with the Blockchain Learning Group offering a special introductory rate to attend an immersive, 2-day Blockchain developer training course on decentralized application development to help fill the gap of skilled engineers while connecting graduates to project opportunities. According to a recent 2018 PwC survey, 84% of 600 executive responders confirmed some involvement with Blockchain technology from proof of concepts to well capitalized international scale-ups and incumbents looking to modernize legacy systems. Distributed and immutable ledger applications are evolving rapidly with uses cases that improve trust and transparency for many business processes while distributing transactions to a decentralized network in a way that reduces costs and eliminates intermediaries. While crypto markets have exceeded $200 billion in just the last 2 years alone, the underlying technology is forecasted to disrupt almost every vertical with ...
Read More
Immersive 2-day Blockchain Developer Training Course (Nov 10-11, Toronto): Decentralized Application Development
Incipient Industries | Steven Dryall | Sep 19, 2018 Incipient Industries Releases Whitepaper Describing How Cryptocommodities  Are Created and Used As The Basis For A Stable Cryptocurrency Toronto, ON, Canada, September 17, 2018 - Incipient Industries Inc. announces the release of the definitive whitepaper on the subject of cryptocommodities. Following years of development combined with the dissemination of information related to cryptocurrency viability and asset- based cryptocurrencies, an actual description of how to deploy a cryptocommodity  is now available. This is a first in the burgeoning cryptocurrency industry and represents a significant step towards a stabilized digital economy. The cryptocurrency industry is still developing and discovering ways to integrate with traditional financial systems or to replace them altogether. The introduction of cryptocoomodities into the cryptosphere creates a new category of opportunities for pioneers in the space. For those seeking a solution to a stable cryptocurrency, this is the best path to success. See:  3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith “This is a perfect use case for cryptocurrency and also follows the Three Pillars of a Viable Cryptocurrency framework.” says Steven Dryall, CEO of Incipient Industries, who has pioneered several key concepts of ...
Read More
Whitepaper Provides Information About Cryptocommodities As The Basis For A Stable Cryptocurrency
Bloomberg | Joshua Brustein | Sep 4, 2018 With fewer than 100 residents, Ocean Falls is looking for a revival after almost four decades of industrial false starts. In 1971, an 11th grader named Greg Strebel wrote the introduction to a book about Ocean Falls, the tiny town in the British Columbian hinterlands where he lived. Strebel mentioned the odd fact that many of the town’s roads were made of wood, said the weather wasn’t as bad as some people made it out to be and noted that it had just gotten a new school building. But the one thing that mattered above all, according to Strebel, was the paper mill. “To most, 'the mill’ imparts a sense of security by its presence,” he wrote. “A low throb of power is audible throughout most of the town as long as the mill runs, accompanied by voluminous exhalations of steam.” The security provided by the mill turned out to be fleeting. It went silent when Strebel was in his 20s. Most of the buildings in Ocean Falls that haven’t been demolished over the decades are crumbling in place, and Strebel, along with most everyone who once lived there, is long gone. A ...
Read More
The Bitcoin Boom Reaches a Canadian Ghost Town
Australian Financial Review | Michael Bailey | Sep 12, 2018 Businesses wishing to raise money from retail investors will no longer have to convert to an unlisted public company structure, after an amendment to 2017's equity crowdfunding legislation passed federal Parliament. The legislation, which takes effect in 28 days from Wednesday, allows proprietary companies or unlisted public companies with annual turnover or gross assets of up to $25 million to advertise their business plans on ASIC-licensed crowdfunding portals, and raise up to $5 million a year to carry them out. Investors can put up to $10,000 a year each into an unlimited number of ideas. Australian private companies are typically limited to a maximum of 50 non-employee shareholders. However, under these reforms, investors acquiring shares through a crowdfunding portal are excluded from this cap, allowing private companies to raise funds from potentially hundreds or thousands of investors. See:  Australia and UK set up FinTech Bridge to deepen collaboration between governments, regulators, and industry bodies Proprietary companies with crowdfunded shareholders will have to prepare annual financial and directors' reports in accordance with accounting standards. Only large proprietary companies, defined as those with any two of either $25 million turnover or above, $12.5 million of gross ...
Read More
$5 million Equity crowdfunding extended to private companies
NCFA Sponsored guest post | Sep 18, 2018 “You are such a worry-wart.” This is the common reaction I get whenever I tell people about how I like to plan ahead. They tell me that I’m too overreacting, that I live too much for the future and not for the present, and that I really don’t get the concept of YOLO. I really don’t give a darn about what these people say. They’re impractically wasting their time, breath, and energy trying to change how I live my life. What if I’m so gung-ho about planning for the future? What if I’m too overly prepared even my future dogs and cats will be feasting every single day? It’s still better than having no insurance. It’s still better than having my children carry my weight. Lastly, it’s still better than being ill-prepared. See:  What Can Traditional Banks Learn From Fintech? If I were to choose between too much and too little, I’d choose too much any day. After all, what’s wrong with having so much you could spare a ton? It’s a thousand times better than having to ask for financial aid because you have so little. Do you get me? I ...
Read More
Why Life Insurance Policies Matter
Forbes | Michael del Castillo | Sep 17, 2018 People keep asking me, what’s the deal with stablecoins? With two prominent regulatory approvals to issue the blockchain-based tokens, many have heralded them as the next evolution of cryptocurrency, while others say they’re perfect evidence of why no one ever needed cryptocurrency in the first place. On a basic level, a stablecoin is a token that has a mechanism in place to minimize its price fluctuations. Unlike traditional cryptocurrencies such as bitcoin and ether, which are directly tied to their wildly fluctuating demand, a stablecoin can rely on four methods to constrain its fluctuations. See:  One SEC commissioner is establishing herself as the voice of innovation for the crypto market The first and by far most popular way to achieve this stability is to peg the price of the token to a more stable asset like the U.S. dollar. This is what both the Gemini and Paxos cryptocurrency exchanges received permission to do from the New York Department of Financial Services last week. Unlike bitcoin and ethereum, which are created through a mining process that also ensures the blockchain’s accuracy, these stablecoins are only created when someone buys them with U.S. dollars. Gemini and Paxos ...
Read More
3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith
NCFA Canada | Sep 14, 2018 Ep9-Sep 14: Curexe's New SmartPay Product & Front-line of Global Digital Payments About this episode:  On this episode our host Manseeb Khan sits down with the CEO And founder of Curexe, so chat about their new product called SmartPay! They also talked about how A.I is going to touch the payments and every other industry, regulations that could be in place when accepting crypto and many more. Enjoy! Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest: Johnathan Holland, Founder and CEO, Curexe Bio:  Johnathan Holland's experience comes from a decade of learning about capital markets and a relentless pursuit of providing better customer experiences in the payments and currency exchange industry. Johnathan’s advantage has been to look at the currency exchange industry in a new light, which enabled him to create a new, better way to empower the businesses that are underserved by their current solutions.  Johnathan graduated from the 2016 cohort of the Next 36 accelerator program that helps young entrepreneurs build high impact businesses and is currently running the company out of the DMZ.  LinkedIn profile Join NCFA's weekly Podcast series 'FINTECH FRIDAY$' where we sit down with the incredible people ...
Read More
FINTECH FRIDAY$ (EP.9-Sep 14):  Curexe's New SmartPay Product & Front-line of Global Digital Payments with Johnathan Holland, Founder of Curexe
Bloomberg | By Natalie Wong and Gerrit De Vynck | June 20, 2018 A cryptocurrency baron has bought the largest and one of the most expensive condos in Canada, paying for it partly with digital money. Anthony Di Iorio purchased the three-story penthouse for C$28 million ($21 million) at the St. Regis Residences Toronto, the former Trump International Hotel & Tower in the downtown business district. The unit totals 16,178 square feet (1,502 square meters) and includes a wrap-around patio overlooking the city’s skyline at the corner of Bay and Adelaide Streets. Di Iorio didn’t take out a mortgage for the property because he doesn’t “like being in debt.” Instead, he cashed out some of his cryptocurrency and made a wire transfer to pay the price. “I don’t remember exactly which ones I cashed in but this is my safety net, real estate right?” he said in an interview with Bloomberg at his new condo. He now owns two condos units in Toronto for a total investment of about C$34 million, he said. “I decided to take a bunch out and put it in real estate.” The hotel is owned by InnVest Hotels LP and operated by Marriott International Inc. as ...
Read More
Crypto Pioneer Buys Penthouse in Former Toronto Trump Tower
Computer Weekly | Karl Flinders | Sep 13, 2018 A Tech Nation programme to support the UK's financial technology startups demonstrates the increasingly diverse range of business-to-business products and services available through the country's fintech community Financial technology (fintech) is providing a market where IT professionals in the finance sector and beyond can find answers to their business challenges through specialist tech startups. UK-based CIOs have the benefit of having these fintech startups on their doorstep. UK government-backed startup network Tech Nation has selected 20 such fintech startups to take part in a five-month programme that aims to scale up early-stage companies. The programme’s business-to-business (B2B) focus demonstrates that beyond the high-profile digital challenger banks and payments companies targeting consumers with funky apps, there is a deep source of niche financial services IT innovation in the UK. Fintech solutions begin life as an idea about how to use technology to solve a particular financial services problem. The speed of software development today means products can quickly follow. See:  UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany But the challenges really begin when it comes to turning a great idea into a commercial success. This is where the likes ...
Read More
Tech Nation startup programme demonstrates richness of UK fintech
Forbes | Enrique Dans | Sep 5, 2018 The growing popularity of fintech and the emergence of competitors in different phases of the cycle, from new banks such as Germany’s N26 to partial service providers such as Revolut and others, or niche competitors such as Shine, highlights not just the inability of traditional banking to compete with them, but even to understand the most basic implications of the phenomenon. The banks’ problem is not competing with these types of companies, or at least, not for now. We talking here about vastly different magnitudes, of scale: a service with strong growth like Revolut, for example, expects to reach three million customers by next month, which is nothing to Santander’s more than 113 million customers in more than ten countries worldwide. The idea that fintech companies represent some kind of threat seems absurd, seen in the context of size. Obviously, this does not mean that the traditional banks should ignore the phenomenon — and they aren’t. Ignoring change and hoping that size will continue to matter is risky. The big banks are aware that the growth of the fintech phenomenon is mainly due to their own shortcomings, to the strong tendency towards industry isomorphism, ...
Read More
What Can Traditional Banks Learn From Fintech?

 

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FCA Regulatory sandbox participants – Cohort 4

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FCA Regulatory Sanbox | Aug 8, 2018

Find out about the 29 businesses that have been accepted into cohort 4 of the regulatory sandbox to test innovative products, services, business models and delivery mechanisms.

We received 69 applications for cohort 4 of the regulatory sandbox. Applications came from a diverse range of firms operating across the financial services sector including in areas such as consumer credit, automated advice and insurance.

29 firms have been accepted to develop towards testing, including 3 firms that were accepted as part of previous cohorts but did not proceed to test. Firms that have been accepted to develop towards testing are listed below, except for one firm that has asked not to be named at this point in time.

See:  Fintech: UK Financial Conduct Authority Initiates Consultation on Global Financial Innovation, Partners with 12 International Regulators

We have accepted a number of firms that will be testing propositions relating to cryptoassets. We are keen to explore whether, in a controlled environment, consumer benefits can be delivered while effectively managing the associated risks.

Tests will be conducted on a short-term and small-scale basis and the FCA is working with each firm to agree testing parameters and build in appropriate consumer safeguards.

Cohort 4 firms

Description

BlockEx Platform that facilitates the issuance and manages the lifecycle of regulated bonds using DLT.
Capexmove

 

Platform that uses DLT to allow small companies to raise capital in a more efficient and streamlined way.
Chasing Returns

 

Psychology-based risk platform that promotes good money management discipline and improves outcomes for customers that trade Contracts for Difference (CfDs). It acts like a digital coach, encouraging adherence to money management and risk exposure levels.
Community First Credit Union

 

Initiative to facilitate creation of an identity token that supports customers who lack traditional forms of ID, in order to assist them in accessing bank account services in the UK.
Creativity Software

 

RegTech solution that supports regulated activities in the UK to achieve more secure customer authentication via mobile phone network based geolocation services. The intention is to draw on geolocation technology to protect UK bank customers from fraud and crime.
CreditSCRIPT

 

Investment platform that gives professional and institutional investors access to a wide range of online lending markets through a single access point. Investors will be able to gain exposure to consumer, SME and real estate loans via CreditSCRIPT.
Dashly

 

Fully autonomous, ‘always-on’ mortgage advice platform that continuously tracks and compares a borrower’s existing mortgage, alerting them the moment it pays to switch.
Etherisc

 

Service that uses smart contracts on a blockchain to provide fully automated, decentralised flight delay insurance.
Fineqia

 

Blockchain-based digital platform that enables companies to issue and administer debt and equity securities, including bonds backed by cryptoassets.
Fractal

 

Insights platform using distributed ledger and artificial intelligence technology to power SME financing by digitising credit applications and connecting loan issuances to the underlying financial data.
Globacap

 

Capital raising platform for SMEs and institutional investors which facilitates the issuance process of debt and equity securities. Globacap use DLT to simplify and streamline the issuance process.

 

 

Continue to the full cohort --> here

 


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with fintech, alternative finance, blockchain, cryptocurrency, crowdfunding and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

Blockchain is here – so what next? The Blockchain Developer Opportunity If you are a software engineer interested in emerging high growth project opportunities, you’ll want to ensure your technical skills are polished and you have access to proper training and resources. There is a significant shortage of skilled Blockchain developers unable to meet the demand of emerging projects! NCFA is pleased to announce an inaugural educational partnership with the Blockchain Learning Group offering a special introductory rate to attend an immersive, 2-day Blockchain developer training course on decentralized application development to help fill the gap of skilled engineers while connecting graduates to project opportunities. According to a recent 2018 PwC survey, 84% of 600 executive responders confirmed some involvement with Blockchain technology from proof of concepts to well capitalized international scale-ups and incumbents looking to modernize legacy systems. Distributed and immutable ledger applications are evolving rapidly with uses cases that improve trust and transparency for many business processes while distributing transactions to a decentralized network in a way that reduces costs and eliminates intermediaries. While crypto markets have exceeded $200 billion in just the last 2 years alone, the underlying technology is forecasted to disrupt almost every vertical with ...
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Immersive 2-day Blockchain Developer Training Course (Nov 10-11, Toronto): Decentralized Application Development
Incipient Industries | Steven Dryall | Sep 19, 2018 Incipient Industries Releases Whitepaper Describing How Cryptocommodities  Are Created and Used As The Basis For A Stable Cryptocurrency Toronto, ON, Canada, September 17, 2018 - Incipient Industries Inc. announces the release of the definitive whitepaper on the subject of cryptocommodities. Following years of development combined with the dissemination of information related to cryptocurrency viability and asset- based cryptocurrencies, an actual description of how to deploy a cryptocommodity  is now available. This is a first in the burgeoning cryptocurrency industry and represents a significant step towards a stabilized digital economy. The cryptocurrency industry is still developing and discovering ways to integrate with traditional financial systems or to replace them altogether. The introduction of cryptocoomodities into the cryptosphere creates a new category of opportunities for pioneers in the space. For those seeking a solution to a stable cryptocurrency, this is the best path to success. See:  3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith “This is a perfect use case for cryptocurrency and also follows the Three Pillars of a Viable Cryptocurrency framework.” says Steven Dryall, CEO of Incipient Industries, who has pioneered several key concepts of ...
Read More
Whitepaper Provides Information About Cryptocommodities As The Basis For A Stable Cryptocurrency
Bloomberg | Joshua Brustein | Sep 4, 2018 With fewer than 100 residents, Ocean Falls is looking for a revival after almost four decades of industrial false starts. In 1971, an 11th grader named Greg Strebel wrote the introduction to a book about Ocean Falls, the tiny town in the British Columbian hinterlands where he lived. Strebel mentioned the odd fact that many of the town’s roads were made of wood, said the weather wasn’t as bad as some people made it out to be and noted that it had just gotten a new school building. But the one thing that mattered above all, according to Strebel, was the paper mill. “To most, 'the mill’ imparts a sense of security by its presence,” he wrote. “A low throb of power is audible throughout most of the town as long as the mill runs, accompanied by voluminous exhalations of steam.” The security provided by the mill turned out to be fleeting. It went silent when Strebel was in his 20s. Most of the buildings in Ocean Falls that haven’t been demolished over the decades are crumbling in place, and Strebel, along with most everyone who once lived there, is long gone. A ...
Read More
The Bitcoin Boom Reaches a Canadian Ghost Town
Australian Financial Review | Michael Bailey | Sep 12, 2018 Businesses wishing to raise money from retail investors will no longer have to convert to an unlisted public company structure, after an amendment to 2017's equity crowdfunding legislation passed federal Parliament. The legislation, which takes effect in 28 days from Wednesday, allows proprietary companies or unlisted public companies with annual turnover or gross assets of up to $25 million to advertise their business plans on ASIC-licensed crowdfunding portals, and raise up to $5 million a year to carry them out. Investors can put up to $10,000 a year each into an unlimited number of ideas. Australian private companies are typically limited to a maximum of 50 non-employee shareholders. However, under these reforms, investors acquiring shares through a crowdfunding portal are excluded from this cap, allowing private companies to raise funds from potentially hundreds or thousands of investors. See:  Australia and UK set up FinTech Bridge to deepen collaboration between governments, regulators, and industry bodies Proprietary companies with crowdfunded shareholders will have to prepare annual financial and directors' reports in accordance with accounting standards. Only large proprietary companies, defined as those with any two of either $25 million turnover or above, $12.5 million of gross ...
Read More
$5 million Equity crowdfunding extended to private companies
NCFA Sponsored guest post | Sep 18, 2018 “You are such a worry-wart.” This is the common reaction I get whenever I tell people about how I like to plan ahead. They tell me that I’m too overreacting, that I live too much for the future and not for the present, and that I really don’t get the concept of YOLO. I really don’t give a darn about what these people say. They’re impractically wasting their time, breath, and energy trying to change how I live my life. What if I’m so gung-ho about planning for the future? What if I’m too overly prepared even my future dogs and cats will be feasting every single day? It’s still better than having no insurance. It’s still better than having my children carry my weight. Lastly, it’s still better than being ill-prepared. See:  What Can Traditional Banks Learn From Fintech? If I were to choose between too much and too little, I’d choose too much any day. After all, what’s wrong with having so much you could spare a ton? It’s a thousand times better than having to ask for financial aid because you have so little. Do you get me? I ...
Read More
Why Life Insurance Policies Matter
Forbes | Michael del Castillo | Sep 17, 2018 People keep asking me, what’s the deal with stablecoins? With two prominent regulatory approvals to issue the blockchain-based tokens, many have heralded them as the next evolution of cryptocurrency, while others say they’re perfect evidence of why no one ever needed cryptocurrency in the first place. On a basic level, a stablecoin is a token that has a mechanism in place to minimize its price fluctuations. Unlike traditional cryptocurrencies such as bitcoin and ether, which are directly tied to their wildly fluctuating demand, a stablecoin can rely on four methods to constrain its fluctuations. See:  One SEC commissioner is establishing herself as the voice of innovation for the crypto market The first and by far most popular way to achieve this stability is to peg the price of the token to a more stable asset like the U.S. dollar. This is what both the Gemini and Paxos cryptocurrency exchanges received permission to do from the New York Department of Financial Services last week. Unlike bitcoin and ethereum, which are created through a mining process that also ensures the blockchain’s accuracy, these stablecoins are only created when someone buys them with U.S. dollars. Gemini and Paxos ...
Read More
3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith
NCFA Canada | Sep 14, 2018 Ep9-Sep 14: Curexe's New SmartPay Product & Front-line of Global Digital Payments About this episode:  On this episode our host Manseeb Khan sits down with the CEO And founder of Curexe, so chat about their new product called SmartPay! They also talked about how A.I is going to touch the payments and every other industry, regulations that could be in place when accepting crypto and many more. Enjoy! Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest: Johnathan Holland, Founder and CEO, Curexe Bio:  Johnathan Holland's experience comes from a decade of learning about capital markets and a relentless pursuit of providing better customer experiences in the payments and currency exchange industry. Johnathan’s advantage has been to look at the currency exchange industry in a new light, which enabled him to create a new, better way to empower the businesses that are underserved by their current solutions.  Johnathan graduated from the 2016 cohort of the Next 36 accelerator program that helps young entrepreneurs build high impact businesses and is currently running the company out of the DMZ.  LinkedIn profile Join NCFA's weekly Podcast series 'FINTECH FRIDAY$' where we sit down with the incredible people ...
Read More
FINTECH FRIDAY$ (EP.9-Sep 14):  Curexe's New SmartPay Product & Front-line of Global Digital Payments with Johnathan Holland, Founder of Curexe
Bloomberg | By Natalie Wong and Gerrit De Vynck | June 20, 2018 A cryptocurrency baron has bought the largest and one of the most expensive condos in Canada, paying for it partly with digital money. Anthony Di Iorio purchased the three-story penthouse for C$28 million ($21 million) at the St. Regis Residences Toronto, the former Trump International Hotel & Tower in the downtown business district. The unit totals 16,178 square feet (1,502 square meters) and includes a wrap-around patio overlooking the city’s skyline at the corner of Bay and Adelaide Streets. Di Iorio didn’t take out a mortgage for the property because he doesn’t “like being in debt.” Instead, he cashed out some of his cryptocurrency and made a wire transfer to pay the price. “I don’t remember exactly which ones I cashed in but this is my safety net, real estate right?” he said in an interview with Bloomberg at his new condo. He now owns two condos units in Toronto for a total investment of about C$34 million, he said. “I decided to take a bunch out and put it in real estate.” The hotel is owned by InnVest Hotels LP and operated by Marriott International Inc. as ...
Read More
Crypto Pioneer Buys Penthouse in Former Toronto Trump Tower
Computer Weekly | Karl Flinders | Sep 13, 2018 A Tech Nation programme to support the UK's financial technology startups demonstrates the increasingly diverse range of business-to-business products and services available through the country's fintech community Financial technology (fintech) is providing a market where IT professionals in the finance sector and beyond can find answers to their business challenges through specialist tech startups. UK-based CIOs have the benefit of having these fintech startups on their doorstep. UK government-backed startup network Tech Nation has selected 20 such fintech startups to take part in a five-month programme that aims to scale up early-stage companies. The programme’s business-to-business (B2B) focus demonstrates that beyond the high-profile digital challenger banks and payments companies targeting consumers with funky apps, there is a deep source of niche financial services IT innovation in the UK. Fintech solutions begin life as an idea about how to use technology to solve a particular financial services problem. The speed of software development today means products can quickly follow. See:  UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany But the challenges really begin when it comes to turning a great idea into a commercial success. This is where the likes ...
Read More
Tech Nation startup programme demonstrates richness of UK fintech
Forbes | Enrique Dans | Sep 5, 2018 The growing popularity of fintech and the emergence of competitors in different phases of the cycle, from new banks such as Germany’s N26 to partial service providers such as Revolut and others, or niche competitors such as Shine, highlights not just the inability of traditional banking to compete with them, but even to understand the most basic implications of the phenomenon. The banks’ problem is not competing with these types of companies, or at least, not for now. We talking here about vastly different magnitudes, of scale: a service with strong growth like Revolut, for example, expects to reach three million customers by next month, which is nothing to Santander’s more than 113 million customers in more than ten countries worldwide. The idea that fintech companies represent some kind of threat seems absurd, seen in the context of size. Obviously, this does not mean that the traditional banks should ignore the phenomenon — and they aren’t. Ignoring change and hoping that size will continue to matter is risky. The big banks are aware that the growth of the fintech phenomenon is mainly due to their own shortcomings, to the strong tendency towards industry isomorphism, ...
Read More
What Can Traditional Banks Learn From Fintech?

 

Share

Fintech Regulations

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Blockchain and Crypto

Equity Crowdfunding and Fintech Legal Issues

 


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with fintech, alternative finance, blockchain, cryptocurrency, crowdfunding and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

Blockchain is here – so what next? The Blockchain Developer Opportunity If you are a software engineer interested in emerging high growth project opportunities, you’ll want to ensure your technical skills are polished and you have access to proper training and resources. There is a significant shortage of skilled Blockchain developers unable to meet the demand of emerging projects! NCFA is pleased to announce an inaugural educational partnership with the Blockchain Learning Group offering a special introductory rate to attend an immersive, 2-day Blockchain developer training course on decentralized application development to help fill the gap of skilled engineers while connecting graduates to project opportunities. According to a recent 2018 PwC survey, 84% of 600 executive responders confirmed some involvement with Blockchain technology from proof of concepts to well capitalized international scale-ups and incumbents looking to modernize legacy systems. Distributed and immutable ledger applications are evolving rapidly with uses cases that improve trust and transparency for many business processes while distributing transactions to a decentralized network in a way that reduces costs and eliminates intermediaries. While crypto markets have exceeded $200 billion in just the last 2 years alone, the underlying technology is forecasted to disrupt almost every vertical with ...
Read More
Immersive 2-day Blockchain Developer Training Course (Nov 10-11, Toronto): Decentralized Application Development
Incipient Industries | Steven Dryall | Sep 19, 2018 Incipient Industries Releases Whitepaper Describing How Cryptocommodities  Are Created and Used As The Basis For A Stable Cryptocurrency Toronto, ON, Canada, September 17, 2018 - Incipient Industries Inc. announces the release of the definitive whitepaper on the subject of cryptocommodities. Following years of development combined with the dissemination of information related to cryptocurrency viability and asset- based cryptocurrencies, an actual description of how to deploy a cryptocommodity  is now available. This is a first in the burgeoning cryptocurrency industry and represents a significant step towards a stabilized digital economy. The cryptocurrency industry is still developing and discovering ways to integrate with traditional financial systems or to replace them altogether. The introduction of cryptocoomodities into the cryptosphere creates a new category of opportunities for pioneers in the space. For those seeking a solution to a stable cryptocurrency, this is the best path to success. See:  3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith “This is a perfect use case for cryptocurrency and also follows the Three Pillars of a Viable Cryptocurrency framework.” says Steven Dryall, CEO of Incipient Industries, who has pioneered several key concepts of ...
Read More
Whitepaper Provides Information About Cryptocommodities As The Basis For A Stable Cryptocurrency
Bloomberg | Joshua Brustein | Sep 4, 2018 With fewer than 100 residents, Ocean Falls is looking for a revival after almost four decades of industrial false starts. In 1971, an 11th grader named Greg Strebel wrote the introduction to a book about Ocean Falls, the tiny town in the British Columbian hinterlands where he lived. Strebel mentioned the odd fact that many of the town’s roads were made of wood, said the weather wasn’t as bad as some people made it out to be and noted that it had just gotten a new school building. But the one thing that mattered above all, according to Strebel, was the paper mill. “To most, 'the mill’ imparts a sense of security by its presence,” he wrote. “A low throb of power is audible throughout most of the town as long as the mill runs, accompanied by voluminous exhalations of steam.” The security provided by the mill turned out to be fleeting. It went silent when Strebel was in his 20s. Most of the buildings in Ocean Falls that haven’t been demolished over the decades are crumbling in place, and Strebel, along with most everyone who once lived there, is long gone. A ...
Read More
The Bitcoin Boom Reaches a Canadian Ghost Town
Australian Financial Review | Michael Bailey | Sep 12, 2018 Businesses wishing to raise money from retail investors will no longer have to convert to an unlisted public company structure, after an amendment to 2017's equity crowdfunding legislation passed federal Parliament. The legislation, which takes effect in 28 days from Wednesday, allows proprietary companies or unlisted public companies with annual turnover or gross assets of up to $25 million to advertise their business plans on ASIC-licensed crowdfunding portals, and raise up to $5 million a year to carry them out. Investors can put up to $10,000 a year each into an unlimited number of ideas. Australian private companies are typically limited to a maximum of 50 non-employee shareholders. However, under these reforms, investors acquiring shares through a crowdfunding portal are excluded from this cap, allowing private companies to raise funds from potentially hundreds or thousands of investors. See:  Australia and UK set up FinTech Bridge to deepen collaboration between governments, regulators, and industry bodies Proprietary companies with crowdfunded shareholders will have to prepare annual financial and directors' reports in accordance with accounting standards. Only large proprietary companies, defined as those with any two of either $25 million turnover or above, $12.5 million of gross ...
Read More
$5 million Equity crowdfunding extended to private companies
NCFA Sponsored guest post | Sep 18, 2018 “You are such a worry-wart.” This is the common reaction I get whenever I tell people about how I like to plan ahead. They tell me that I’m too overreacting, that I live too much for the future and not for the present, and that I really don’t get the concept of YOLO. I really don’t give a darn about what these people say. They’re impractically wasting their time, breath, and energy trying to change how I live my life. What if I’m so gung-ho about planning for the future? What if I’m too overly prepared even my future dogs and cats will be feasting every single day? It’s still better than having no insurance. It’s still better than having my children carry my weight. Lastly, it’s still better than being ill-prepared. See:  What Can Traditional Banks Learn From Fintech? If I were to choose between too much and too little, I’d choose too much any day. After all, what’s wrong with having so much you could spare a ton? It’s a thousand times better than having to ask for financial aid because you have so little. Do you get me? I ...
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Why Life Insurance Policies Matter
Forbes | Michael del Castillo | Sep 17, 2018 People keep asking me, what’s the deal with stablecoins? With two prominent regulatory approvals to issue the blockchain-based tokens, many have heralded them as the next evolution of cryptocurrency, while others say they’re perfect evidence of why no one ever needed cryptocurrency in the first place. On a basic level, a stablecoin is a token that has a mechanism in place to minimize its price fluctuations. Unlike traditional cryptocurrencies such as bitcoin and ether, which are directly tied to their wildly fluctuating demand, a stablecoin can rely on four methods to constrain its fluctuations. See:  One SEC commissioner is establishing herself as the voice of innovation for the crypto market The first and by far most popular way to achieve this stability is to peg the price of the token to a more stable asset like the U.S. dollar. This is what both the Gemini and Paxos cryptocurrency exchanges received permission to do from the New York Department of Financial Services last week. Unlike bitcoin and ethereum, which are created through a mining process that also ensures the blockchain’s accuracy, these stablecoins are only created when someone buys them with U.S. dollars. Gemini and Paxos ...
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3 Clever Ways To Reach Crypto Price Stability, And One Giant Leap Of Faith
NCFA Canada | Sep 14, 2018 Ep9-Sep 14: Curexe's New SmartPay Product & Front-line of Global Digital Payments About this episode:  On this episode our host Manseeb Khan sits down with the CEO And founder of Curexe, so chat about their new product called SmartPay! They also talked about how A.I is going to touch the payments and every other industry, regulations that could be in place when accepting crypto and many more. Enjoy! Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest: Johnathan Holland, Founder and CEO, Curexe Bio:  Johnathan Holland's experience comes from a decade of learning about capital markets and a relentless pursuit of providing better customer experiences in the payments and currency exchange industry. Johnathan’s advantage has been to look at the currency exchange industry in a new light, which enabled him to create a new, better way to empower the businesses that are underserved by their current solutions.  Johnathan graduated from the 2016 cohort of the Next 36 accelerator program that helps young entrepreneurs build high impact businesses and is currently running the company out of the DMZ.  LinkedIn profile Join NCFA's weekly Podcast series 'FINTECH FRIDAY$' where we sit down with the incredible people ...
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FINTECH FRIDAY$ (EP.9-Sep 14):  Curexe's New SmartPay Product & Front-line of Global Digital Payments with Johnathan Holland, Founder of Curexe
Bloomberg | By Natalie Wong and Gerrit De Vynck | June 20, 2018 A cryptocurrency baron has bought the largest and one of the most expensive condos in Canada, paying for it partly with digital money. Anthony Di Iorio purchased the three-story penthouse for C$28 million ($21 million) at the St. Regis Residences Toronto, the former Trump International Hotel & Tower in the downtown business district. The unit totals 16,178 square feet (1,502 square meters) and includes a wrap-around patio overlooking the city’s skyline at the corner of Bay and Adelaide Streets. Di Iorio didn’t take out a mortgage for the property because he doesn’t “like being in debt.” Instead, he cashed out some of his cryptocurrency and made a wire transfer to pay the price. “I don’t remember exactly which ones I cashed in but this is my safety net, real estate right?” he said in an interview with Bloomberg at his new condo. He now owns two condos units in Toronto for a total investment of about C$34 million, he said. “I decided to take a bunch out and put it in real estate.” The hotel is owned by InnVest Hotels LP and operated by Marriott International Inc. as ...
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Crypto Pioneer Buys Penthouse in Former Toronto Trump Tower
Computer Weekly | Karl Flinders | Sep 13, 2018 A Tech Nation programme to support the UK's financial technology startups demonstrates the increasingly diverse range of business-to-business products and services available through the country's fintech community Financial technology (fintech) is providing a market where IT professionals in the finance sector and beyond can find answers to their business challenges through specialist tech startups. UK-based CIOs have the benefit of having these fintech startups on their doorstep. UK government-backed startup network Tech Nation has selected 20 such fintech startups to take part in a five-month programme that aims to scale up early-stage companies. The programme’s business-to-business (B2B) focus demonstrates that beyond the high-profile digital challenger banks and payments companies targeting consumers with funky apps, there is a deep source of niche financial services IT innovation in the UK. Fintech solutions begin life as an idea about how to use technology to solve a particular financial services problem. The speed of software development today means products can quickly follow. See:  UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany But the challenges really begin when it comes to turning a great idea into a commercial success. This is where the likes ...
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Tech Nation startup programme demonstrates richness of UK fintech
Forbes | Enrique Dans | Sep 5, 2018 The growing popularity of fintech and the emergence of competitors in different phases of the cycle, from new banks such as Germany’s N26 to partial service providers such as Revolut and others, or niche competitors such as Shine, highlights not just the inability of traditional banking to compete with them, but even to understand the most basic implications of the phenomenon. The banks’ problem is not competing with these types of companies, or at least, not for now. We talking here about vastly different magnitudes, of scale: a service with strong growth like Revolut, for example, expects to reach three million customers by next month, which is nothing to Santander’s more than 113 million customers in more than ten countries worldwide. The idea that fintech companies represent some kind of threat seems absurd, seen in the context of size. Obviously, this does not mean that the traditional banks should ignore the phenomenon — and they aren’t. Ignoring change and hoping that size will continue to matter is risky. The big banks are aware that the growth of the fintech phenomenon is mainly due to their own shortcomings, to the strong tendency towards industry isomorphism, ...
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What Can Traditional Banks Learn From Fintech?

 

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