Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Marketing, Strategy, Growth, Design
CSA Review of EMD Selling Groups Exemption
Capital Raising | Dec 2, 2025
Regulators Launch Consultation to Assess Temporary EMD Selling Groups Exemption
On November 27 2025, Canadian securities regulators released CSA Multilateral Staff Notice 31-367, confirming that the temporary rule under Coordinated Blanket Order 31-930 will end on December 20, 2025 (see release). The consultation remains open until January 26, 2026, which creates a timing gap that matters for exempt market dealers, founders and investors who want clarity on whether a revised model may support stronger capital raising across Canada.
The EMD Selling Groups exemption started in June 2024. It enabled exempt market dealers to join selling groups in prospectus offerings. The policy goal looked straightforward. Most Canadian companies start in the exempt market. Many later raise growth capital under a prospectus. Allowing exempt market dealers to stay involved as companies advance could strengthen continuity, expand distribution and support investor access.
See: How Fintechs Are Unlocking Value in Private Markets 2024
The results did not match that intent:
According to the Staff Notice, only 3 exempt market dealers filed the required notice to participate, and only 2 of those exempt market dealers actually joined selling groups. Each took part in two prospectus offerings. That means the entire pilot produced four transactions nationally. The low participation explains why regulators want to close the temporary rule and collect feedback on the structural issues that affected the outcome.
What EMDs, Founders and Investors Said Through the Pilot
Regulators identified four barriers that influenced participation, according to the Staff Notice.
1. Exempt market dealers cannot access electronic settlement through the Canadian Depository for Securities. Issuers that chose to work with exempt market dealers needed to use paper certificates. This added time and cost to prospectus stage financing.
2. Exempt market dealers cannot advise clients on securities purchased under a prospectus. This restriction makes it difficult for them to support clients after closing.
See: Budget 2025 Accelerates Fintech, AI, and Capital Growth
3. Compensation limits created a barrier. Exempt market dealers faced a scale back on economics when compared with other activities available to them.
4. Issuers and investment dealers were not fully aware that exempt market dealers could participate. Some exempt market dealers reported that investment dealers did not understand the conditions required to include them in selling groups.
Although most issues seem like practical challenges, companies and intermediaries tend to choose the path with the fewest obstacles. Any friction at the distribution or settlement layer reduces interest in a new route, especially if the upside is limited.
Regulators also outlined the questions they want the market to address during the consultation. They want to understand whether the compensation limits reduced interest in the exemption and whether a different structure could support fair incentives. They also want feedback on how the lack of electronic settlement access affects issuer decisions, how the advice restrictions affect client relationships, and whether issuers and investment dealers need clearer guidance on how to include exempt market dealers in selling groups.
Why This Outcome Matters to the Market
Founders want financing routes that feel clear and predictable. Investors value trusted relationships and efficient execution.
Exempt market dealers want a model that supports their clients as they grow, along with fair compensation.
Read: DealMaker Raises $20M to Expand AI Capital Platform
The exemption tried to bridge the exempt market with the prospectus market but with only four completed transactions under the temporary exemption, data suggests that the approach wasn't sustainable for both issues and dealers who want reliable access to distribution during growth stage financing.
For founders, this means they will need to continue to rely on investment dealers when they reach the prospectus stage.
For investors, this means their EMD cannot guide them through a prospectus purchase because the rules doesn't allow exempt market dealers to advise clients on prospectus securities.
Regulators are now looking for feedback that reflects what founders, investors and dealers experience on the front line to better understand incentives, bottlenecks and market behaviour.
Regulators Look for Practical Market Insight
The Ontario Securities Commission recently launched a program offering $30,000 in grant support to academic researchers for new research work on Ontario capital markets. This program encourages research that helps regulators understand how companies raise capital and how the market supports growth. Note, NCFA previously wrote about how wider participation may better unlock the kind of innovative policies required in 2026 and beyond to support a dynamic and competitive capital market while protecting investors.
See: Market Forces Pressuring Fintech Plans For 2026
The combination of the CSA consultation and the OSC research program are signs that regulators want practical input grounded in real activity. The pilot produced limited use, so regulators now want to hear from market participants before they consider any new approach.
Outlook
Canada needs rules that help companies raise growth capital and help investors access opportunities backed by clear standards. The temporary EMD selling group exemption didn't move the needle enough in the practical world to support extension.
The CSA consultation now gives the market a chance to highlight what helps and what slows down capital formation. Founders, investors and dealers have an opportunity to provide inputs that supports growth and strengthens Canada’s competitiveness in capital markets innovation. Submit your consultation comments to the CSA here before January 26, 2026.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Newfoundland Utility Ruling And Crypto Mining In Canada
Crypto Mining | Dec 1, 2025
AI generated image
Competing Demands Within Canada’s Clean Power Strategy
On November 28 2025, the Financial Post reported that the Newfoundland and Labrador Court of Appeal issued a ruling involving Blockchain Labrador Corporation (BLC) that confirmed NL Hydro can limit firm electricity service for new crypto mining operations.
BLC originally applied for 20 megawatts of guaranteed power service for a site in Wabush but NL Hydro declined to commit to that level because it needed to protect capacity for industrial, household and export priorities. Instead, NL Hydro will supply 7.75 megawatts to the company on an interim basis.
The ruling outcome confirms that NL Hydro has set boundaries on clean electricity when new digital workloads (ie. crypto mining, AI processing) add pressure to a constrained system.
National Mining Footprint In Perspective
Canada was once a notable player in global Bitcoin mining with national activity reaching close to 10% of global hashrate in 2021 but it's participation has since declined. Hashrate Index estimated that Canada held about 4% to 5% of global hashrate in their 2023 Canadian mining review, and then in a recent Q4 2025 global hashrate heatmap update benchmarked the country near 2.9%.
Canada's reduced footprint reflects a sector now concentrated in a few established companies. This smaller group of operators (see below and note, not exhaustive) also gives provinces more room to manage clean electricity across many competing needs.
See: DMG Blockchain Plans Oregon Site for AI and Mining
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- Hut 8 operates sites in southern Alberta and North Bay and previously expanded its access to electricity resources through the Medicine Hat power agreement, while continuing to build new compute and data capacity through its Vega facility expansion
- Bitfarms continues to run hydro powered installations in Quebec, as noted in the Canadian mining assessment, along with additional development in Latin America
- HIVE and DMG maintain Canadian infrastructure while building new facilities in other regions, including DMG’s plans for Oregon expansion.
Provincial Decisions On Clean Power
Several provinces with hydro based systems have taken steps to manage electricity access for mining and other high demand digital activities.
British Columbia's clean electricity announcement enabled restrictions on new mining connections. The province later confirmed a permanent limit in the 2025 energy release, and the Court of Appeal supported provincial authority to set these boundaries in the Conifex ruling summary.
Manitoba adopted a pause on new mining activity when the utility raised concerns about the scale of new load requests. The province issued this direction in the 2022 guidance on electricity connections and extended the pause through 2026 in the 2024 directive on cryptocurrency operations.
New Brunswick took a more restrictive position. The provincial Electricity Act prevents a distribution utility from extending electricity to a new crypto mining business, which appears in the current consolidation of the Act and adopted through Bill 10.
See: Corporate Crypto Treasuries Cross $137B as DATCos Multiply
Quebec continues to serve existing projects but limits new load and uses a dedicated rate class for this sector. A review commissioned by Hydro Québec found that mining produces fewer jobs for each megawatt consumed compared to data centres and industrial users, which encouraged ongoing limits.
Alberta remains an outlier, operating a deregulated, competitive market for electricity that allows mining companies and compute operators to negotiate directly for supply, supported by broader generation options.
Global Evidence On Mining Electricity Use
Global research from the Cambridge Centre for Alternative Finance (CCAF) offers insight into energy use for digital mining. Cambridge estimates that Bitcoin mining draws about one hundred thirty eight terawatt hours of electricity per year, as described in CCAF's update on sustainable energy use and detailed further in a Cambridge digital mining report.
The research shows that more than half of global mining electricity comes from sustainable sources such as hydropower, wind and nuclear.
Low cost clean electricity attracts miners, data centres, industrial electrification and long term export contracts. Provinces build policies that protect available capacity for the users that advance their long term economic priorities.
Why This Matters
Crypto mining can contribute value when it aligns with provincial priorities but utilities now apply stronger criteria when making decisions about supplying consistent clean energy.
Read: SEC Confirms Crypto PoW Mining is Not a Security
The ruling involving Blockchain Labrador Corporation is an example of how a province evaluates new digital load against industrial development, household reliability and export duties. Informative for any Canadian fintech leaders following the developments in digital finance, compute infrastructure and national (global) ambitions for clean energy growth.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Visa Expands Stablecoin Settlement Across CEMEA
Stablecoins | Dec 1, 2025
Instant Settlement Infrastructure for Global Payment Flows
On November 26 2025, Visa announced an expansion of stablecoin settlement across Central and Eastern Europe Middle East and Africa through a new partnership with Vancouver-based fintech, Aquanow. The integration gives issuers and acquirers on the Visa network the ability to settle transactions in approved stablecoins such as USDC and introduces a settlement rail that clears value faster at lower cost and with fewer operational steps than traditional systems that rely on closing hours and multi-party workflows.
See: Aquanow Unveils the AQN Digital Ventures Fund for Nextgen Blockchain Startups
Visa first used USDC for settlement in 2023 and now records an annualized settlement volume above $2.5 billion proving that institutions are already incorporating stablecoin settlement in daily operations, moving transaction flow across markets and supporting teams that seek real-time settlement, instead of fixed windows.
Aquanow supports Visa's stablecoin expansion with digital asset infrastructure that processes billions of dollars in monthly activity. The company works with banks neobanks brokerages and payment firms, reporting a four year revenue growth rate of 3022%, earning it multi-year recognition as the 8th best Deloitte Technology Fast 50 top companies in 2024.
Faster Settlement For Global Institutions, Banks and Fintechs
Many institutions still work around systems that close on weekends, rely on several intermediaries, and delay the release of funds. These delays hold capital in transit and create uncertainty for teams that manage liquidity each day. Visa and Aquanow address this gap by offering a rail that runs at all hours and clears transactions faster than older cross border settlement paths.
This model reduces operational drag and gives financial institutions, banks and credit unions a clearer view of cash position in markets with uneven settlement conditions.
See: Visa Extends Stablecoin Settlement to Four Blockchains
This supports services that rely on dependable settlement such as global ecommerce platforms marketplace payouts and remittance flows.
- Quicker settlement means treasury teams gain more predictable access to funds
- Payment operators remove steps that slow down processing
- Global processors improve payout cycles across markets that rely on complex bank to bank networks
- Product teams can design services on top of a rail that runs by the clock rather than by local banking windows
- Customer teams can offer faster and more reliable payout times
Aquanow Builds Global Platform Under VARA Regulation
Aquanow launched in Vancouver, Canada and built a global digital asset platform that now powers part of Visa’s settlement expansion. The company maintains a publicly stated money services business registration with FINTRAC on its own website and operates a regulated entity in the United Arab Emirates through Aquanow ME FZE. The UAE entity received approval from the Virtual Assets Regulatory Authority for broker-dealer services, lending and borrowing, and management and investment services.
Read: Canada Releases The First Draft Of The Stablecoin Act
This structure shows how a Canadian born fintech can scale global settlement infrastructure by operating in markets that provide clear digital asset licensing. It's another great example of the capability of Canadian firms to contribute to global payment modernization, delivering digital settlement capacity within a regulated international environment. It also provides policymakers a reference point for how digital settlement can operate at production scale within clear regulatory frameworks.
Why It Matters
Visa's stablecoin settlement expansion across CEMEA, in partnership with Canadian fintech Aquanow, sets a new expectation for settlement speed and efficiency. Companies and institutions want faster movement of value, lower cost, and better control over liquidity. Digital asset rails deliver these results in ways legacy systems struggle to match. This partnership offers a clear example of modern settlement infrastructure that supports live cross border operations and works inside a regulated environment at scale.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Market Forces Pressuring Fintech Plans For 2026
Strategic Planning | Nov 28, 2025
Image: Freepik/rawpixel.com
Fintech Considerations For 2026 Strategy
2026 is approaching and fintechs are entering the new year with clear signals on how capital is being deployed, how financial institutions are investing in automation and AI driven capabilities and which policies will shape financial infrastructure. Markets place a higher premium on efficiency, governance and resilience as financial institutions modernize data access and digital settlement. Retail investor participation also expanded as equity crowdfunding set new records in Canada, strengthening another channel of capital formation.
See: United States Genesis Mission And Canada’s Competitiveness
United States tariffs and interest rate expectations continue to influence capital costs and enterprise demand across North America. Singapore FinTech Festival 2025 recently wrapped and outlined what global leaders expect over the next decade. This article provides an overview of how these forces intersect and will impact 2026 conditions, helping fintechs define runway, product plans and investor alignment for the year ahead.
Capital Planning End of 2025
Global investors concentrated capital into fewer fintech companies through 2025. KPMG tracked $44.7B across 2,216 global fintech deals and reported stronger momentum in digital assets and AI powered platforms. The global fintech funding review for 2025 notes uneven performance across payments and infrastructure and continued strength in digital asset investment. AI influence extends across every funding stage and drives the clearest premium in investor behaviour.
Canadian fintechs raised about $1.62B across 60 deals. KPMG data reported by Lexpert shows a steep decline from record 2024 levels as investors became more selective and disciplined. KPMG’s H1 2025 report confirms the trend toward fewer large cheques and more careful deployment.
CVCA reported $2.9B across 254 Canadian VC deals with average cheque sizes near $11.4M. The VC deployment across Canada in H1 2025 reported that early stages represented more than half of deal count but only 10% of dollars. NCFA’s seed review shows AI companies raising about $24M across 12 early stage rounds and fintech attracting about $9M across pre-seed and seed combined in the seed investing trends in H1 2025.
Canadian founders also turned to retail investors through regulated equity crowdfunding channels. FrontFundr, a leading Canadian investment crowdfunding platform, enjoyed a banner year raising CAD $68.3M across 66 campaigns in 2024 with 4,226 individual investments, its strongest year on record. This growth in community capital raising speaks volumes that diversified sources of early stage capital can complement VC allocations during selective cycles. For fintechs, retail participation can help extend runway, validate demand and reduce dependence on a small number of institutional investors.
AI remains the strongest source of valuation strength across the fintech sector. NCFA’s analysis shows that AI fintechs attract a 242 valuation premium compared with non AI peers. This tells fintechs that investors reward automation, accuracy and data advantage even during slower deployment cycles. AI's impact will continue to drive product development strategy, unit economics and growth planning for 2026.
Canada Moving On Open Banking, Payments, Stablecoins, While Pausing Climate Disclosure
Open banking moves into implementation. Budget 2025 commits to a consumer driven banking framework that designates the Bank of Canada as the supervisor for accredited participants and sets rules for data access, liability, security and technical standards. The consumer driven banking framework in Budget 2025 changes data mobility from one off arrangements to regulated data rails. These data rails also support AI adoption because models require secure access to high quality data. Fintechs that prepare for accredited access and safe data workflows will gain an advantage as institutions deploy AI into risk, compliance and customer operations.
Fintechs should expect accreditation activity, testing and early stage integrations as technical standards move toward production readiness through 2026.
Retail Payment supervision is operational and supports future access to real time settlement. Under the Retail Payment Activities Act, the Bank of Canada supervises payment service providers to ensure operational resilience and safeguarding of client funds. This oversight creates the regulatory foundation required for participation in core payment systems. Payments Canada continues development of the Real Time Rail (expected Q2 2026), while the Bank’s commentary on cashing in on payments innovation explains how regulation strengthens competition and prepares the foundation for modernized settlement. It also sets the operational standards that AI systems must meet for real time fraud detection, liquidity monitoring and compliance automation. Fintechs should plan for higher compliance expectations in 2026 and a clearer pathway into national payment systems once real time settlement becomes available.
See: Canada Open Banking Commercialization Roadmap
Stablecoin regulation advances. Canada released the first draft of its federal stablecoin legislation which sets out rules for high quality reserves, custody, redemption, disclosures and prudential oversight. NCFA’s summary of the first draft of the Stablecoin Act outlines a government framework that brings fiat backed stablecoins into a supervised environment. As tokenized settlement expands, AI will move deeper into treasury, reconciliation, fraud control and settlement routing. Fintechs that design early AI enabled settlement workflows will operate more efficiently under these rules. Fintechs involved in digital money, cross border payments or tokenized settlement should expect stronger regulatory clarity across 2026.
Climate and sustainability disclosure remains paused. CSA halted its mandatory climate disclosure rule in April 2025 and signalled the pause will continue. Although the rule is on hold, enterprise buyers and investors still assess climate and transition risk data during diligence. The CSA climate disclosure update notes that existing materiality rules and OSFI Guideline B-15 still apply through 2026. AI plays a growing role in climate analytics and transition planning, which means fintechs that use AI for risk scoring and scenario work will offer enterprise buyers more actionable intelligence during diligence. Fintechs should assume voluntary disclosure is expected even without a formal mandate.
Competitiveness pressure remains. Bank of Canada leadership warns that slow progress on open data, payment modernization and digital infrastructure affects productivity and innovation. Reuters coverage of the warning on over regulation and competitiveness highlights the need to accelerate foundational reforms. AI impacts that competitiveness gap because institutions deploy AI into fraud detection, lending, treasury and customer workflows. Fintechs that use AI with strong governance will operate more efficiently, support regulated environments and scale faster when data access and payment rails modernize.
For fintechs, these signals point to regulated data access, modern payments and digital assets becoming the highest value infrastructure themes for 2026..
United States Tariffs, Rates And Capital Conditions
Fintechs operating in the North American economy are being impacted by United States tariffs, rate decisions and political volatility. United States imposed tariffs cut Canada’s projected GDP growth to about 1.4% in 2025 and 1.6% in 2026, according to IMF linked projections. These estimates reflect weaker demand and reduced investment appetite across export dependent sectors. Fintechs should treat tariffs as a structural constraint for 2026, not a short term shock.
Markets now expect the Federal Reserve to cut rates in December. Polymarket shows an 87% chance of a 25 point rate cut, based on more than $183M in trading volume, which reflects strong real time sentiment. Economists still expect only small rate cuts through 2026, with United States growth around 2% and inflation near 2.6%. Fintechs may receive some cost of capital relief but investors will continue to expect efficient spending, strong revenue performance and clear evidence of product viability at today’s cost structure.
See: Canada Expanding Economic Ties With UAE India And Africa
Canadian monetary authorities modeled the tariff impact and warned that trade friction could reduce investment by about 12% and lower output by almost 3% over two years. The Bank’s scenario work on tariffs and structural change supports planning for lower investment and slower recovery.
Fintechs should prepare for slower enterprise procurement cycles and more selective purchasing behavior.
Globally Expect Slower Trade, Fragmented Rules And AI Pressure
Global growth projections dropped to about 2.8% in 2025 as tariffs spread and trade tensions widened. Export Development Canada’s global economic outlook for 2025 and 2026 forecasts Canadian growth around 0.8% in 2025 and 1.1% in 2026. Fintechs should expect slower demand, higher operating costs and more uncertainty across key trading regions.
An MIT study released in 2025 shows that about 12% of United States jobs could be automated using current AI tools today. As AI pressure intensifies it drives enterprise demand for automation, cost control and compliance. It also accelerates talent scarcity and raises expectations for governance and model transparency across financial services.
Global regulatory fragmentation expands. The EU AI Act, United Kingdom digital regulation, Singapore AI governance frameworks and China data sovereignty rules all diverge. If fintechs want to scale internationally in 2026, they must build modular compliance, auditability and data governance into core architecture.
What SFF 2025 Says About 2026 And Beyond
SFF 2025 provided a clear view into the next cycle of fintech infrastructure and the capabilities that institutions expect. The SFF 2025 blueprint for the next decade of finance placed AI, tokenized settlement, quantum readiness and talent at the centre of global financial transformation for the coming years.
AI moved into production across onboarding, monitoring, underwriting and support. Financial institutions showed mature applications that reduce fraud, improve accuracy and accelerate customer workflows. Tokenized finance advanced as central banks and major institutions tested tokenized settlement assets, wholesale CBDCs and regulated stablecoins. These experiments are clear move from demos towards infrastructure design.
See: How Fintech Teams Move From Tools To Agents
Quantum readiness entered strategic planning as banks prepared for post quantum cryptography and assessed their high value data inventory.
Talent emerged as one of the most constrained resources, with strong demand for cybersecurity, data and AI capabilities.
2026 will reward fintechs that integrate AI into their core stack, design products that support tokenized workflows, build quantum safe readiness and hire for digital infrastructure skills that support resilience and scale.
2026 Fintech Planning Insights
| Canada Policy Shifts That Drive 2026 Strategy | ||
|---|---|---|
| Open Banking Readiness | Canada moves to regulated data rails with accreditation and Bank of Canada oversight. | Build accredited data access readiness now. This creates a major advantage when banks and credit unions adopt regulated data sharing in 2026 and gives fintechs a lead when institutional partners demand safe integration. |
| Payment Supervision Alignment | Retail Payment Activities Act supervision is active and PSPs prepare for Real Time Rail participation. | Raise operational standards to meet supervision requirements. This clears the path for Real Time Rail access when available and strengthens partnership credibility with banks that expect higher resilience from PSPs. |
| Stablecoin Compliance Design | Canada released the first draft of the Stablecoin Act with rules for reserves, custody and redemption. | Design compliance into digital money products now. This avoids costly retrofits when rules finalize and positions fintechs for early participation in tokenized settlement experiments that banks support across 2026. |
| Transition And Climate Disclosure | CSA paused mandatory climate disclosure but investors still expect transition data in diligence. | Maintain credible voluntary disclosure. This reduces diligence friction with investors and large institutions that rank climate and transition data as core risk inputs even without a mandate. |
| Capital Conditions For Canadian Fintechs | ||
| Runway Discipline | Canadian funding normalizes with more selective deployment and fewer large rounds. | Plan 18 to 24 months of runway. This protects valuations and gives Canadian fintechs flexibility during slower deployment cycles and longer diligence timelines. |
| Revenue Quality First | Investors reward revenue durability as rates in the United States and Canada change slowly. | Increase margins, retention and customer lifetime value. This strengthens funding outcomes and signals that the business performs at today cost of capital. |
| Diversified Capital Routes | Equity crowdfunding reached record levels with rising retail participation in Canada. | Use investment crowdfunding to extend runway and validate market demand. This reduces reliance on a small number of venture investors and supports growth during selective funding cycles. |
| AI As The Primary Driver Of Competitiveness | ||
| AI As Core Infrastructure | SFF 2025 showed AI runs onboarding, risk, fraud and support in production. | Automate core work and improve accuracy. This reduces cost, raises product reliability and strengthens enterprise trust when selling into Canadian banks and credit unions. Remember, AI fintechs receive a valuation premium because automation and accuracy improve economics at every growth stage. |
| Model Governance Strength | Institutions expect clear model behaviour and explainability before integration. | Document lineage and monitoring with precision. This increases procurement success and accelerates enterprise adoption when institutions face rising AI governance requirements. |
| AI Driven Efficiency | Canadian enterprises invest in automation as budgets remain tight. | Replace manual workflows with AI to lower operating cost. This strengthens margins during slower growth and improves investor confidence. |
| Tokenized Settlement And Security Readiness | ||
| Tokenized Settlement Readiness | Banks and central banks test tokenized deposits and wholesale CBDCs. | Design workflows that support tokenized settlement. This prepares Canadian fintechs for early pilot participation when infrastructure tests expand in 2026. |
| Quantum Safe Architecture | Institutions begin planning for post quantum encryption. | Inventory sensitive data and adopt cryptographic agility. This protects long term assets and reduces future migration cost for Canadian fintechs selling into regulated environments. |
| Trade, Tariffs And Canadian Procurement Conditions | ||
| Adjusted Sales Cycles | Tariffs reduce Canadian investment and slow enterprise buying. | Extend sales cycle assumptions and build conservative forecasts. This improves cash planning and prevents burn surprises when procurement slows across regulated sectors. |
| Cost And Risk Value Propositions | Global growth slows and Canadian enterprises protect budgets. | Lead with measurable savings and risk reduction. This increases purchase probability in cost constrained environments and improves sales success during slow demand cycles. |
Why It Matters For 2026
As the close of 2025 nears, fintechs operate in a world where capital rewards evidence first, and where AI driven performance gains receive premium valuation only when they improve accuracy, automation or margins. Fintech policy advancement in Canada moves forward on open banking, payments and stablecoins and these developments create new regulated rails to build on. Tariffs, interest rates and slower global growth increase the need for financial discipline and durable revenue streams. Retail investors also became more active in 2025 as equity crowdfunding set new records, giving Canadian fintechs another way to raise capital when venture funding is more selective. SFF 2025 highlighted the technologies that will shape financial infrastructure for the next decade.
See: AI Immerses Youth Today And The Real Question Of Protection
Fintechs that align their strategy with the forces that matter, including AI, regulated data access, modern payments, tokenized settlement and stronger governance, will be better positioned to raise capital, win enterprise partnerships and scale through uncertainty.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Australia Launches 2025 Digital Asset Framework
Digital Asset Regulation | Nov 27, 2025
Image: Australian crypto adoption 2019 2025 (Independent Reserve chart)
A Principles and Risk-based Digital Asset Framework Enters Australia’s Financial System
On November 26 2025, the Australian government led by Treasurer Jim Chalmers and Minister for Financial Services Daniel Mulino introduced the Corporations Amendment (Digital Assets Framework) Bill 2025 by official announcement New Digital Asset Laws to Unlock Innovation and Safeguard Investment.
See: Deloitte Australia’s AI Error Shakes Consulting Trust
The bill creates a clear digital asset framework that covers custody, settlement and platform operations, and it aims to raise investor protection while supporting stronger confidence across Australia’s quickly growing digital asset market. The government positions the framework as a foundation for long term innovation, including tokenization of real world assets, replacing years of uncertainty with defined expectations for operators and institutions.
Digital Assets Background In Australia
Australia has a large and active digital asset community with significant adoption, consistent user growth and a broad set of service providers, which explains the need for a clear regulatory framework. Australia also has several large crypto exchange platform operators serving mainstream users including global giants like Binance, Kraken and Coinbase to name a few.
Survey data and analysis of Australian crypto ownership in early 2025 shows that 32.5% of Australians have owned digital assets, and 70% of those investors hold Bitcoin. More than half of these investors report a profit on their activity.
Engagement continues to rise among older Australians (see chart above). Digital asset ownership among Australians over 65 reached 8.2% in 2025, up from 2% in 2019, read 'baby boomers and retirees invest in crypto'.
New Categories For Digital Asset Services
The bill creates two new financial product categories inside the Corporations Act. (1) A digital asset platform is a facility where an operator holds or controls digital tokens for clients, and (2) a tokenized custody platform is a facility where an operator holds a real world asset and links each asset to a single redeemable token.
These categories require an Australian Financial Services Licence and give operators a clear legal structure for activities that involve possession, safekeeping or management of client tokens and tokenised assets.
Principles-Based Standards For Custody And Settlement
The bill uses a principles-based approach by setting the main definitions and outcomes in the law while giving the Australian Securities and Investment Commission (ASIC), Australia’s corporate regulator, the authority to write the detailed custody and settlement standards. Parliament explains what platforms must achieve, including the need to safeguard client assets, keep accurate records, reconcile balances and manage settlement risk. ASIC then decides how platforms meet these outcomes in practice.
See: Australia Announces 10 Voluntary Responsible AI Guardrails
This approach lets ASIC update requirements as technology evolves without rewriting legislation. It keeps the focus on clear results rather than long checklists of technical steps.
Risk-Based Framework for Market Activity
The bill also uses a risk-based model that links the level of obligation to the level of exposure. Large platforms that hold significant client assets must follow stronger custody and settlement rules. Small platforms that hold less than $5,000 per customer and process less than $10 million a year qualify for a small scale exemption. This supports early pilots and lower risk use cases without placing them under the same obligations as large operators.
The Minister can also use a product intervention power when a digital asset creates clear risks for consumers or the financial system, which allows the government to place temporary limits on that product while ASIC puts longer term rules in place.
In short, the bill uses principles to define the outcomes and risk to decide how strongly those outcomes apply across the market.
Stronger Transparency For Clients
Operators must publish platform rules that act as a contract between the operator and clients. These rules must describe eligibility, settlement processes, use of external liquidity, allocation of operational risk and redemption or delivery of assets.
See: Bank of England Sets New Rules for Systemic Stablecoins
Clients receive clear information about how the service works and what risks they face, which supports informed decision making and strengthens accountability across the sector.
What Comes Next
The bill must now move through Australia’s parliamentary process, which includes further debate and committee review before a final vote. Regulators will prepare the custody standards, settlement standards and platform rule requirements once the bill becomes law. Operators will begin licensing preparation, platform rule design and compliance planning.
The next stage will also decide how the framework reaches newer parts of the market. The legislation sets the main structure, but the regulator must still fill in many operational details.
Those standards will determine how custody rules work in practice, how platforms handle execution and settlement and how services near the line between custodial and non-custodial models will operate.
There are also open questions for stablecoins, decentralized finance and some wallet services, so the practical impact of the framework will depend on how the regulator completes this work in the months ahead.
Why The Framework Matters
Digital asset custody and platform activity now follow the same regulatory expectations used across Australia's financial system. Institutions can participate with more confidence because the framework sets out clear duties for operators that hold client assets or manage tokenized activity. The government notes that digital finance innovation could generate as much as $24 billion each year in productivity and cost savings for Australia.
See: Canada Releases The First Draft Of The Stablecoin Act
The combination of principles-based standards and risk-based market obligations gives operators clear expectations as they build new tokenized real world asset projects, and supports long term innovation under rules that stay steady even as technology changes.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Building Financial Resilience in an Age of Uncertainty
Nov 27, 2025
Image: Freepik/creativeart
In today’s uncertain and volatile global economy, businesses need to be resilient in order to succeed. Many businesses have been struggling to steady the ship since the pandemic due to a range of factors, including lockdowns, lower consumer confidence, increasing costs, cybercrime, tariffs, supply chain issues, and more. Therefore, businesses must be resilient in order to weather the storm and achieve success despite the external factors. So, how can a company build financial resilience during an age of uncertainty? It might feel like an uphill battle, but there are a few smart strategies to build financial resilience that can help you succeed and benefit from peace of mind.
Risk Awareness
First, businesses must be aware of the risks that their company faces. Risk assessments can help companies determine the general and specific risks they face, allowing them to develop strategies to mitigate these risks. For SMEs, this is vital for resilience against various threats but also for building trust with investors, partners, and clients. Threats are constantly evolving, so it is wise to conduct regular risk assessments to identify vulnerabilities and reduce your exposure. This can prevent issues from arising in the first place, allowing you to take a proactive stance.
Emergency Buffer
One of the most effective ways to build financial resilience is to build an emergency buffer. This is a contingency fund that you can turn to if you face an unexpected expense or if business slows down for one reason or another. It is generally recommended to have 3-6 months’ worth of expenses in the fund and keep it in an easy-access, high-interest account. This can prevent you from having to take on debt in an emergency and can provide peace of mind.
Insurance Coverage
Liquidity is certainly important in uncertain times, but you should never underestimate the importance of insurance. Insurance can provide financial stability and business continuity when an unexpected situation arises, so you want to make sure that you are fully protected against general and industry-specific threats. You will also want to find a reliable insurance provider, such as Aviva. Trusted companies like this can provide insurance policies tailored to the needs of your business, allowing for comprehensive protection and reassurance.
Adaptability
Finally, it is important to be adaptable. To achieve long-term success, businesses need to be ahead of the curve and willing to change. This means embracing digital transformation and new technologies, investing in staff training, conducting regular market research, and taking advantage of new opportunities that present themselves. While these uncertain times can certainly create challenges, they can also create new opportunities. This is why the businesses that are light on their feet are the ones that enjoy long-term success.
See: Strengthening Resilience and Leading Through Uncertainty
It can be challenging for businesses to thrive during these uncertain times, which is why building financial resilience is key. By focusing on the above areas, businesses will be able to protect themselves against the various modern threats that every company faces and industry-specific challenges. Hopefully, this will enable you to weather the storm, adapt, and achieve long-term success.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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United States Genesis Mission And Canada’s Competitiveness
AI Innovation | Nov 26, 2025
Image: Freepik/DC Studio
U.S. Accelerates Scientific Discovery, Pressuring Canada’s Competitiveness
On November 24 2025, the United States introduced the Genesis Mission by presidential executive order to create a national plan to use AI to accelerate scientific discovery by turning federal scientific data and national lab supercomputers into one research engine. The Mission instructs the Department of Energy to bring together national lab compute systems, decades of federal datasets, and advanced AI tools into a unified discovery platform.
See: Fintech’s Role in Canada’s Productivity Revival
The United States invests about $940B each year in total R&D across business, academic, and government sectors. Federal agencies perform roughly $74B of that work according to National Science Board data showing total U.S. R&D and federal R&D performance. The Genesis Mission uses this large research base to speed up discovery and strengthen national competitiveness.
Q and A: What The Genesis Mission Does And Why It Matters
What problem does the Genesis Mission try to solve
Federal leaders say scientific progress has slowed. Research in biotechnology, materials science, clean energy, and other fields takes too much time and requires significant resources. The Genesis Mission will use artificial intelligence to help researchers simulate experiments, test ideas, and find scientific patterns faster.
What data will the Genesis Mission use
Federal scientific datasets include information from the Department of Energy open data portal, National Institutes of Health scientific data resources, NASA Earth science and satellite data, NOAA climate and environmental datasets, Environmental Protection Agency public data, and the United States Geological Survey geological data platform. These datasets include physics records, biological data, climate observations, satellite readings, environmental measurements, and outputs from high performance computing systems.
Why artificial intelligence plays a central role
Artificial intelligence can examine large datasets, run simulations, detect scientific relationships, and support experiment design. The White House states that the Mission will “harness Federal scientific datasets, the worlds largest collection of such datasets, developed over decades of Federal investments” to accelerate discovery through new scientific models.
How this supports national security
The Mission targets strategic fields such as semiconductors, quantum science, fusion energy, biotechnology, advanced manufacturing, and critical materials. Federal leaders link this work directly to national security and economic strength.
How the private sector will use this platform
Federal documents describe the Genesis Mission as a national platform that brings government, industry, and academic researchers into one discovery system. The Department of Energy states that the Mission “will mobilize the Department of Energy’s 17 National Laboratories, industry, and academia” to build an AI enabled discovery platform that uses national lab supercomputers and curated federal datasets as described in the Department of Energy announcement of the Genesis Mission.
See: OSC $30K Research Grants for Ontario’s Capital Markets
The executive order also defines the American Science and Security Platform as infrastructure that includes high performance computing, advanced AI models, secure access to federal and synthetic datasets, and tools for AI assisted experimentation. These documents show that the United States intends to create structured pathways for companies and researchers who need access to national compute systems and curated scientific data.
How The Genesis Mission Will Boost Competitiveness
The United States Is Converting Data Into Discovery Power
The United States holds a large base of scientific data created through national laboratory work and federal research. These datasets often sit in separate systems. The Genesis Mission brings this information together and connects it to artificial intelligence tools. This gives the United States a clear advantage in fields that rely on data and high performance computing.
Artificial Intelligence Can Shorten Research Cycles
Artificial intelligence can help researchers test ideas faster, explore scientific patterns, and move from manual processes to rapid model driven cycles. If the United States reduces discovery times across key scientific fields it can improve innovation strength and create more commercial opportunities.
R&D And Productivity Impact Economic Strength
Canada invests far less in R&D than the United States. The comparison below uses verified public data from the National Science Board, Statistics Canada, the OECD, and Canadian research analysis.
| Measure | United States | Canada | Sources |
| Total R&D spending | $940B in U.S. R&D spending | $55B in Canadian R&D spending 2024 | NSB, Statistics Canada |
| Federal R&D spending | $74B in U.S. federal R&D performance | smaller share inside the total figure | NSB, Statistics Canada |
| R&D intensity | above 3% in many measures | among lowest in G7 according to Canadian reporting on weak R&D intensity | University Affairs, OECD |
| Business R&D | strong private sector | weak according to research on structural gaps in Canadian business R&D | Checkpoint Research |
| Labour productivity | higher output per hour | persistent gap according to OECD reporting on Canada’s productivity | OECD |
This comparison shows the structural difference between the two countries. The United States enters the Genesis Mission with a large research base that artificial intelligence can accelerate. Canada enters with weaker investment and slower productivity growth.
Canada Faces A Real Competitiveness Challenge
Canada invests less in R&D than the United States and shows lower business led research compared with peer countries. A recent Canadian assessment ranks Canada near the bottom of advanced economies in business enterprise R&D intensity according to research that highlights Canada’s weak private sector R&D investment. Canada also has world class AI research centers such as Vector, Mila, and Amii, and they contribute strong scientific output. However they don't operate a national system that brings together federal datasets, high performance computing, and artificial intelligence for coordinated discovery.
See: How Competition Powers Canada’s Economic Growth
These gaps limit Canada’s ability to compete against countries that build stronger national research infrastructure. If the United States speeds up discovery through a national artificial intelligence platform Canada may rely more on foreign systems and lose ground in advanced materials, biotech, quantum research, and energy.
Outlook
The Genesis Mission gives the United States a new way to use scientific data, computation, and artificial intelligence to speed up discovery. It supports national security, innovation, and economic strength. For Canada it raises a serious challenge. Canada invests far less in R&D and lacks a unified artificial intelligence research platform. As the United States accelerates discovery Canada must decide how to strengthen the outcomes of its research base and protect its competitiveness in a world where artificial intelligence supports scientific progress.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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