Category Archives: NCFA In The News

NetworkNewsWire Announces Collaboration with VanFUNDING 2018 as Official Social Media Sponsor

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Newswire Release | Nov 15, 2018

NEW YORK, Nov. 15, 2018 (GLOBE NEWSWIRE) -- via NetworkWire -- NetworkNewsWire (“NNW”), a multifaceted financial news and publishing company, today announces its participation in the upcoming VanFUNDING 2018: CONVERGE (#VF2018) conference, taking place Nov. 29-30, 2018, at the JW Marriott Parq Vancouver in Vancouver, B.C. NetworkNewsWire is the official social media sponsor of this leading fintech and capital conference, which will explore the explosive growth currently happening relative to blockchain, AI, fintech and funding innovations, global market developments and alternative investing opportunities.

“Our team is proud to be chosen as the official social media sponsor of VanFUNDING 2018,” said Jonathan Keim, communications director for NetworkNewsWire. “We look forward to lending our expertise in promoting the conference to our 1.6+ million followers via dozens of investor-focused brands, helping greatly expand the reach of VanFUNDING 2018 and its sponsors and exhibitors.”

As part of its sponsorship, NNW is featuring VanFUNDING 2018 on its website and the website of its sister brand CryptoCurrencyWire. NNW is also providing a summary profile for each conference partner and disseminating these profiles through its many social channels and robust editorial syndication network with 5000+ outlets to help expand the reach of the event’s sponsors beyond the conference halls.

“NetworkNewsWire is a leading news and publishing entity within the financial world, and we are excited to be including its team of experts among our sponsors at this year’s event,” said Craig Asano, founder and CEO of the National Crowdfunding & Fintech Association of Canada (NCFA), the organizational body presenting VanFUNDING 2018. “Their impressive syndication network, robust following and vast expertise make them a valuable partner to help promote this year’s immersive conference.”

The theme of the expanded, fourth annual VanFUNDING conference is “CONVERGE,” which centers on immersion and building bridges to connect today’s most disruptive emerging technologies, capital market innovations and key stakeholders that are powering new global markets, new decentralized models, new forms of computer intelligence, new IP, new infrastructure and new alternative investment opportunities that encapsulate the vision of a Web 3.0. The conference is a not-to-be-missed event for any fintech innovator, investment professional, company actively raising capital and key decision maker/stakeholder in technology and digital finance. The world’s premier fintech leaders, investors and emerging innovators will be in attendance, as will policymakers and representatives from government regulatory bodies with an eye on the future of finance.

For more information about VanFUNDING 2018: CONVERGE, visit http://vanfunding.com.

About NetworkNewsWire

NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge. For more information, please visit https://www.NetworkNewsWire.com.

Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer.

About VanFUNDING 2018

VanFUNDING 2018 is a not-to-be missed BLOCKCHAIN, FINTECH & FUNDING INNOVATION and ALT INVESTING conference that features high growth emerging technologies, regulations, game changing projects, the latest trends, deal flow, and investment opportunities. VF2018 brings markets to life with authentic dialogues and engaging stories that educate, inspire and resonate with innovative start-ups, scale-ups, investors, service providers, thought leaders, policy makers and financial institutions who are leading the next generation of finance. Connect with leading experts and learn how to build, buy or sell in Canada’s innovation finance markets. For more information, please visit: http://vanfunding.com.

About the National Crowdfunding & Fintech Association (NCFA)

The National Crowdfunding & Fintech Association (NCFA) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org.

Corporate Communications Contact:
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com

 


The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org


THANKS FOR #VF2018 VANCOUVER!
CHECK OUT THE PICS!


Bloomberg | Julie Verhage and Jennifer Surane | Dec 10, 2018 In 2018, a number of financial technology startups came into their own. Free trading platform Robinhood Markets Inc., for example, added new services and billions to its valuation. And Stripe Inc. was valued by investors at a price higher than the market caps of 249 of the companies on the S&P 500 Index. But the industry is also maturing and consolidating, and larger industry players, hoping not to be left behind by the new era of digital finance, are stepping up their hunt for acquisitions. What should we be on the lookout for in 2019? According to the fintech pros surveyed by Bloomberg—more deals, swirling IPO rumors and a continued steady stream of checks from venture capitalists. Here’s a wrap from industry experts. (Quotes have been lightly edited for clarity and length.) See:  OSC Seeks Applications for Fintech Advisory Committee IPOs looming Up to this point, financial technology startups have been hesitant to enter the public markets. And who can blame them? Most fintech companies that have gone public in recent years have seen their share prices tumble, and ample venture capital funding has buffered balance sheets. Still, a major IPO ...
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Experts predict the five big fintech trends of 2019
Coinsquare release | Dec 6, 2018 The acquisition was closed for $12 million CAD and brings the leading cryptocurrency wallet on the Stellar platform into the Coinsquare ecosystem TORONTO, Dec. 6, 2018 /CNW/ - Today Coinsquare, Canada's premier cryptocurrency trading platform for trading Bitcoin, Ethereum, and other cryptocurrencies, announced it has acquired BlockEQ, the leading cryptocurrency wallet on the Stellar network. Coinsquare purchased BlockEQ for $12 million CAD and will leverage BlockEQ's technology to help Coinsquare and its users connect further with the world of cryptocurrencies. See:  House Finance Committee Urges Canadian Government to Regulate Cryptocurrencies "We have enormous respect for what the BlockEQ team brings to Coinsquare," said Cole Diamond, CEO of Coinsquare. "They are one of Canada's best tech teams, and the product they've built is immensely valuable. That combination in partnership with Coinsquare's technology and team means that we have the opportunity to build amazing things for the cryptocurrency community in Canada and far beyond." BlockEQ, which was co-founded by Jonathan Lister, Megha Bambra and Satraj Bambra, is a cryptocurrency wallet that empowers users to buy, trade, and hold cryptocurrencies in a secure manner. It allows for the tokenization of crypto assets in order to allow them ...
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Coinsquare acquires BlockEQ to expand its cryptocurrency offerings
OSC Release | Dec 6, 2018 TORONTO – The Ontario Securities Commission (OSC) is seeking applications for membership on its Fintech Advisory Committee (FAC). The FAC advises OSC LaunchPad staff on developments in the fintech space and the challenges faced by start-ups in the securities industry.  OSC LaunchPad is a dedicated team that engages with fintech businesses, provides guidance and flexibility in navigating securities regulatory requirements, and works to keep regulation in step with digital innovation. The FAC will meet quarterly, with additional meetings as required. The FAC is chaired by Pat Chaukos, Deputy Director, OSC LaunchPad, and will consist of up to 15 members. Membership terms will be for one year.  Members will be selected based on whether they have direct experience in one or more of the following: Digital platforms (e.g., crowdfunding portals, crypto-asset trading platforms, online advisers); Crypto-assets or distributed ledger technologies (e.g., blockchain); Data science or artificial intelligence (AI); Venture capital, financial services, securities, legal or accounting experience with a focus on the fintech or technology sector; Fintech or technology entrepreneurship; Compliance or regulatory technology (RegTech) solutions; or Cryptography or cybersecurity. See:  OSC outlines key areas of focus for 2018-2019 Interested parties should submit a résumé indicating their ...
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OSC Seeks Applications for Fintech Advisory Committee
Coindesk | Nikhilesh De | Nov 30, 2018 Members of VanEck, SolidX and the Cboe BZX Exchange met with U.S. Securities and Exchange Commission (SEC) staff earlier this week to present a new argument on why the bitcoin market is ready for an exchange-traded fund (ETF). In the latest push to convince the regulator to approve a rule change which would open the door for the country’s first bitcoin ETF, the three firms met with the SEC’s Division of Corporation Finance, Division of Trading and Markets, Division of Economic and Risk Analysis and Office of General Counsel. Notably, Monday’s effort differed from previous presentations, which took more of a regulatory focus. See:  OSC approves Canada’s first blockchain ETF Instead, the proponents’ argument centered around the idea that the bitcoin market is mature enough to support an ETF, and at present looks similar to markets for other assets which already have such products. The presentation gave several examples of assets that already have ETFs, including crude oil, silver and gold. The presentation specifically tied the idea of futures markets with spot markets, noting that for money substitutes such as gold and silver, this connection between the two can be proven with empirical ...
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Bitcoin ETF Seekers Met With SEC Monday In Latest Pitch for Approval
Investment Executive | By James Langton | Nov 23, 2018 Many hurdles remain for the CMRA before it becomes a reality Canada’s regulatory landscape faces a transformation as politics, shifting priorities and new legal realities push the investment industry’s overseers in new directions. Most obviously, the prospect of a fundamental reshaping of the regulatory framework in Canada now is, at least, a possibility – given the Supreme Court of Canada’s (SCC) long-awaited decision on Nov. 9, which reversed a lower court’s ruling in Quebec, that declared that a proposed federal/provincial model for a co-operative capital markets regulator is constitutional. But while this decision knocks down a basic legal obstacle for the new model for overseeing the securities industry, that doesn’t mean that the adoption of a co-operative regulator is imminent – or even inevitable. Indeed, the SCC’s decision hints at the significance of the hurdles that still must be cleared before the proposed Capital Markets Regulatory Authority (CMRA) can become a reality in Canada. Although the SCC has found that the proposed CMRA model is constitutional, that doesn’t necessarily mean it is a good idea. “It’s up to the provinces to determine whether participation is in their best interests,” the ...
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Not yet a done deal
Forbes | Lawrence Wintermeyer | Dec 2, 2018 If your professional interests take you to the crossroads of financial services, regulation, compliance, and digital - especially data analytics and machine learning - which altogether is known as regtech, you are in the right place. You are part of statistically small and very geek-oriented professional community, but you know this, and though you might choose not to admit this to strangers at this year's festive parties for fear of causing great pain by boredom, you are in good company with this Contributor and my interviewee. I first met Jo Ann Barefoot when I was chairing the U.K. Financial Conduct Authority (FCA) Industry Sandbox Consultation, where she provided excellent guidance and insights. Jo Ann is one of the most dedicated and busiest advocates of the regtech space on the planet and is truly outstanding in both her knowledge and passion in this area. She dedicates her time to a number of global bodies and initiatives related to regtech: she is a Senior Fellow Emerita at the Harvard Kennedy School Center for Business & Government, a Senior Advisor to the Omidyar network, sits on the fintech advisory committee for FINRA, is an Executive Board Member of the International RegTech ...
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A Regulation Revolution In Financial Services
NCFA Canada | Nov 23, 2018 JOIN US ON A STORYTELLING JOURNEY EVERY FRIDAY. Ep19-Nov 23:  Future of Business Tokenization - How Blockchain Challenges Concept of Money About this episode:   On this episode, NCFA Fintech Friday's host Manseeb Khan sits down with Alan Wunsche the CEO of TokenFunder. They chat about ICO's funding startups, tokenization of businesses and buying real estate through tokens. Enjoy! The future of business tokenization How tokenization is going to disrupt real estate and auto industry How blockchain challenges the concept of money Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest:  ALAN WUNSCHE, Founder and CEO, TokenFunder (view Linkedin) Bio:  Alan Wunsche is CEO & Chief Token Officer of TokenFunder, a regulatory-compliant blockchain venture funding platform with Ontario's first regulated Initial Token Offering. He is also Chair & Co-Founder of Blockchain Canada, a Canadian federal not-for-profit corporation with a mission to connect Canadian Blockchain Innovators and to help Canada be a leader in blockchain technology. Alan is a finance technologist focused on new blockchain business models and the disruptive impacts of blockchain on global wealth distribution. He brings hands-on technology experience as a finance and risk transformation executive at a global bank (Scotiabank), management consulting (Deloitte, PwC), and ...
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FINTECH FRIDAY$ (EP.19-Nov 23):  Future of Business Tokenization - How Blockchain Challenges Concept of Money with Alan Wunsche, Founder and CEO, Token Funder
CBC News | Nov 23, 2018 More than 3,000 people contributed to campaign to buy new installation from renowned Japanese artist LET'S SURVIVE FOREVER. That's the name of the infinity mirrored room the Art Gallery of Ontario plans to purchase from world-renowned artist Yayoi Kusama — that is, if its crowdfunding campaign is successful. And yes, it's always spelled in all-caps, the Art Gallery of Ontario (AGO) said. Over 3,000 people have already chipped in a contribution to permanently acquire the brand new Kusama installation, even though they hadn't seen it until now. The AGO said its campaign has brought in around half of the $1.3 million it needs to buy the work, but it's hoping more people donate on next week's "Giving Tuesday," a day devoted to donations following "Black Friday" shopping. Here's a look inside the room: The major installation, which will be given a special place at the downtown Toronto gallery, features mirrored orbs on the ground and suspended from the ceiling — similar to the work Narcissus Garden, which dominated a large room in the AGO during last year's ultra-popular Kusama exhibit. There's also a mirrored rectangular column inside the LED-lit room, which creates what's said to feel like an infinity room inside an infinity room ...
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Art Gallery of Ontario shows off the Yayoi Kusama infinity room it's crowdfunding to buy
CNBC | Eric C. Jansen, president and chief investment officer of Finivi | Oct 31, 2018 The many big companies disrupted by blockchain have now made it a priority to harness this technology. Large firms such as Accenture, Facebook, Google, IBM and Microsoft are developing patented products and services based on blockchain's digital-ledger open-source technology that can be accessed and adapted by anyone. Ironically, the whole raison d'etre of blockchain is to circumvent the very type of centralized authority these traditional tech companies represent. Development efforts in both private and public blockchain are seeking to forge new business models. As is typically the case when faced with disruption, large companies are seeking to defend their territory by adopting the very tool that threatens them. With blockchain there's a lot at stake. The global market for blockchain-related products and services is about $700 million and is projected to exceed $60 billion annually in 2024, according to Wintergreen Research. Among the big corporate blockchain players are Accenture, Facebook, Google, IBM and Microsoft. These firms are developing products and services based on blockchain's digital-ledger open-source technology that can be accessed and adapted by anyone. Blockchain enables global transactions between parties without going through ...
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Blockchain's potential will continue to spur public and private investment
CFO Innovation | by Eric Cheung, Unit4 Asia Pacific | March 15, 2018 The world as we know it is changing. Rapid technological advancements are altering industries and creating new market opportunities. As the business world accelerates towards what arguably is looking like an everything-as-a-service (XaaS) economy, the next few years will be pivotal for finance departments in making the transformations necessary to update their service offerings and deliver service excellence. Several trends are converging over the next few years that could set the stage for a service-economy shift that will keep CFOs more than ever in the driving seat. This year, 2018, may turn out to be an important turning point for the finance function as three disruptive technologies begin to be widely adopted – as the finance function of Unit4 Asia Pacific, which I lead as CFO, is finding out. In the finance function, we are developing blockchain-enabled distributed ledgers that we plan to link to our Unit4 Financials single-ledger system in 2018 Blockchain and Self-Driving Finance As the foundation of cryptocurrencies, blockchain has already played a vital role in next-generation finance tools. It is also gaining traction in a wide range of industries across Asia Pacific. In ...
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A Tech CFO on Three Disruptive Technologies Transforming Finance

 

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Peer-to-peer lending will help small businesses stay afloat

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The Globe and Mail | Michael King and Craig Asano | May 30, 2018

With interest rates on the rise and the Canadian banks moving up lending rates, the higher cost and reduced availability of credit will affect all Canadian businesses, like a rising tide lifting all boats. Inevitably some boats will be swamped and sink, particularly if they are smaller and more vulnerable.

One set of borrowers at greater risk are Canada’s 1.14 million small businesses, defined as companies that employ up to 99 workers. Statistics Canada reports that small businesses represented 98 per cent of all businesses, employed 70 per cent of workers, and generated 30 per cent of each province’s GDP on average. This category includes startups and high-growth firms, which represent Canada’s best hope for job creation and economic growth.

As credit becomes less available, small businesses face a difficult choice of cutting back on investment or turning to more expensive borrowing, such as credit cards or payday loans. Either option is bad.

Fortunately, small businesses now have an alternative source for loans called peer-to-peer (P2P) lending. These online platforms match borrowers and investors directly and can provide loans cheaper and faster than traditional sources. How can that be? The answer is technology.

Taking a step back, small businesses are financed differently than big ones. Most Canadian startups have neither the credit history nor the collateral to secure a bank loan. Statscan reports that more than 80 per cent of startups rely on alternative funding sources such as the entrepreneurs’ savings and personal loans taken out by owners. Only 45 per cent can access credit from financial institutions and 19 per cent receive trade credit from suppliers.

Technology is disrupting this paradigm. P2P lending platforms allow businesses (and individuals) to take out a loan online with the funds crowdsourced by investors who pool their savings to fund loans. Traditionally only financial institutions were set up to screen borrowers and allocate credit. But technologies such as the internet, cloud computing, data analytics and artificial intelligence have opened this asset class to new lenders such as your neighbour or a fellow business owner.

Canada’s first P2P platform, Lending Loop, was launched in late 2015 – a decade after this model was pioneered in Britain by Zopa. Last month, Lending Loop passed $20-million in loans funded on its platform by more than 20,000 Canadian investors. While $20-million is impressive, it is still only a sliver of the $95-billion of credit outstanding to Canadian small businesses as reported by Statscan.

The average small business borrower on Lending Loop’s platform is borrowing $75,000 to $100,000 for three to five years. While interest rates vary substantially, P2P loans typically start at around 6 per cent with an average interest rate of 12 per cent, significantly lower than a credit card. These loans are used to finance inventory and equipment, or to hire new employees.

The Canadian P2P lending market got a boost this month when the Ontario government announced it would contribute $3-million over the next two years to loans funded on Lending Loop’s platform. The Ontario government will fund up to 10 per cent of small business loans, supporting funding of $30-million.

See:

Besides the obvious benefit to small businesses, Ontario’s announcement was important for two reasons. First, Ontario has drawn attention to P2P lending as an alternative funding source and raised awareness among businesses to accelerate adoption. And second, by partnering with a fintech startup, Ontario is leading by example and giving a boost to entrepreneurs working to democratize finance.

Here are four more steps that Canadian policy makers can take to promote P2P lending:

First, Canada should follow Britain and adopt new P2P lending regulations, as opposed to shoehorning this sector under existing equity regulations. New regulations should ensure the cost of due diligence borne by lenders is proportionate to the investment risk.

Second, retail investor caps for P2P lending should be raised over time if this asset class is proven to be low risk, increasing the pool of funds available to meet the needs of small businesses.

Third, the federal government should partner with industry to provide more education for investors and small businesses. This effort should include data collection and benchmarking to allow researchers to establish what is working and what is not.

Fourth, Canada should adopt Britain’s mandatory referral program. Banks that reject a small-business loan must refer unsuccessful applicants to a government portal that connects them with alternative lenders who may be able to assist them.

Our hope is that Canadian politicians recognize that promoting innovation means more than cutting ribbons and offering tax credits. It is about plugging holes in a leaky financial system and adding wind to the sails of small businesses to move them forward.

 

Continue to the full article --> here

 


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, 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

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What we can learn from Ontario’s $3 million loan to small business

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NCFA Canada | By Gary Buisansky | May 11, 2018

Summary

It's not every day we wake up to hear that the Ontario Government has committed to a loan of 3 million Dollars for small business. A market woefully underserved by traditional lenders.

Beyond the benefit this will have for small business, it provides testimony to the National Crowdfunding & Fintech Association of Canada’s continued advocacy for financial and regulatory support to the sector. (You can read the NCFA’s March 2018 submission to Finance Canada here and Lifting the Veil on Peer to peer Lending in Q1 2016 here).

As an industry, while we navigate the regulatory hurdles, there are some lessons we can take away from this, to better help ourselves and the Canadian market. There are also several Canadian success stories which we should not lose sight of. AI, Crypto currency and blockchain, are all thriving in Canada.

Ontario Government supports small business

Lending Loop, an active member of the NCFA, has been making the news lately with an announced 2-year pilot project partnership with the Ontario Government for a $3 million loan.

If you're not familiar with Lending Loop, it fills an important void in the market, connecting small businesses and Canadian retail investors, willing to lend to them.

Through the Lending Loop platform, small companies can finance loans at reasonable rates, often within days of their loan application.

These borrowers face very real challenges securing funding in the Canadian market with debt finance to SME's considered very risky. Where loans are made, they usually come with eyewatering interest rates, reflecting their often-limited track record, lack of financial information and availability of collateral.

See:  Ontario government invests in fintech to boost small-business lending

Loans provided by Lending Loop will now have a 10% government participation, with the government portion of the loan amount treated like any other; the principle amount will be repaid together with interest.

The anchor investment by the Ontario Government will enable total funding of around $30 million to Ontario's SME's providing welcome relief to an under banked market and provide leveraged economic benefit into the broader economy.

This is a clear win for all parties. But what can the greater fintech community learn from this success?

The importance of government relationships and support for fintech companies

Cato Pastoll, CEO and Co-Founder of Lending Loop, makes the point that fintech companies underestimate the importance of government relationships, particularly those in the startup phase. He suggests:

"Its up to you to educate the regulators about your business and what societal benefits it provides. You need to make yourself heard. For the most part, fintech entrepreneurs do not make it a priority to try work with government.

It can be vital, particularly in regulated industries, to find the time and make the effort. The governments role is to hear the challenges industries and people are facing and want to understand the dynamics of the market".

In his experience, regulators and government only hear part of the story and if fintech does not speak up, then regulators are left with only the incumbents viewpoint.

Government recognizes that Canada can play a bigger game

In a study released in December last year, the Canadian Competition- Bureau, observed:

"...other jurisdictions have more welcoming and innovationconducive regulatory environments than Canada. The United Kingdom, the United States, Singapore, Germany, Australia and Hong Kong have been identified as leading fintech hubs based on talent, funding availability, government policy and demand for fintech".

This contrasts with the position in Canada, where regulatory gaps, uncertainty and lack of consistency across provinces prevail.

An 11-point plan has been proposed, that includes harmonizing regulation across geographic boundaries, and identifying a fintech policy lead for Canada. These solutions would go a long way to addressing key roadblocks in the growth and development of Canadian fintech. Additionally, Craig Asano, Executive Director of the NCFA, makes the point that:

To help verify Canadas competitive position relative to other jurisdictions, additional resources and support are needed for data collection and education. This will help quantify the number of fintech companies, capital investments, financings and loan volumes of new funding models, and the time and cost spent on compliance.

The Canadian government is extremely well placed to support the sector. The Business Development Bank of Canada (BDC) is the largest VC fund in the country with over $1 billion in capital under management. Most Canadian VC funds have government money, either directly through BDC investing in the funds or indirectly through funds of funds that in turn invest in VC's.

The significance of government involvement and ability to support and foster a sustainable fintech sector, with market confidence is critical. The C.D. Howe Institute makes the case for a suite of recommendations that, if adopted, will better position Canada to take advantage of its investments in the technological revolution that is underway throughout the economy.

Right way round regulatory sandboxes could offer short term benefits

While Canada makes use of regulatory sandboxes to help start-ups test new products or services in a controlled environment, there is room to improve the model. Unlike competitor countries including the UK and Australia, which offer flexible and proportional regulatory frameworks, Canada follows a more paternalistic model.

See:  How Blockchain and Crypto are Impacting Canadian Fintech Markets

Cato Pastoll says the Canadian model has it the wrong way around.

In Canada one must adjust your business to fit in with the existing regulatory models rather than forcing regulators to figure out how best to regulate.

Getting this right is critical in his view, particularly if we are going to compete with other countries.

What this requires is a mind shift followed by active dialogue between stakeholders and industry to work out a better framework for regulatory sandboxes.

That said, there are some areas of fintech where accelerator programs and innovation hubs are showing strong results.

Artificial Intelligence and Blockchain is accelerating in Canada

KPMG International in their Pulse of Fintech Q4'17 Report, highlights AI as a major driver of innovation in the Americas, particularly in the US and Canada.

It refers to Canada as, "a hotbed for fintech innovation", and goes on to say that Canada’s participation in the space is getting more notice with world-class fintech hubs in Canada rapidly maturing with increased attention from US investors.

Crypto currency and blockchain related ventures are also recognizing Canada as a friendly jurisdiction.  With strong investor appetite available, crypto mining companies, Hut 8 Mining, BitFury and HIVE have all come to market to capital through the TSX-V.

See:  Registration Open: Convergence of the titans: Nobel Peace Prize Recipient, Irakli Beridze, to Present in Toronto at AiDecentralized Summit (May 22)

More recently, the Ontario Securities Commission consented to the listing of the first Canadian Bitcoin ETF on the TSX under the ticker, HBLK which invests in companies involved in blockchain and distributed ledger technologies.

And over the past few days, Huobi a Singapore-based bitcoin exchange, (and the world’s number three exchange by 24-hour volume), has stated its intention to expand its operations to Toronto.

General Manager of Huobi, Ross Zhang stated;

"Canada is emerging as a leading blockchain nation, and Toronto is set to become one of the next most active blockchain hubs across North America".

Canada's fintech time is now

This serves to demonstrate that If Canada is to capitalize on the wave of fintech opportunity washing our shores, we need to act swiftly and get our regulatory house in order.

Without the need to reinvent the wheel, we can borrow from global best practices. We must continue to lobby for a unified regulatory framework and insist that the Federal Government champion fintech. Fintech after all has the wherewith-all to make a marked difference in our economy.

It would be a sad day if in years to come, we look back and wonder how we let slip what could have been ours to have.

 

Gary Buisansky is a freelance writer for NCFA and founder of Coin My Copy  which specializes in writing marketing content, including white papers, website copy, articles and case studies for fintech and traditional finance companies.

 


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to over 1700+ members 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

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Canada’s Largest Investment Crowdfunding Platform Hits $10 Million of Combined Capital Raised to Support Growing Canadian Businesses

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Digital Journal - FrontFundr Release | April 9, 2019

Investment crowdfunding is an alternative source for companies seeking capital to grow their businesses.

VANCOUVER, BC, April 09, 2018 /24-7PressRelease/ -- "We are pleased to announce that we have now raised a combined $10 million for Canadian companies through our online platform," said Peter-Paul van Hoeken, FrontFundr's C.E.O. "We have enabled over 18 Canadian companies to obtain the funding they need to grow while creating communities of supporters and advocates for each company's products and services."

Craig Asano, Founder and CEO of the National Crowdfunding and Fintech Association, NCFA Canada said. "We are thrilled to see the growth of FrontFundr and congratulate them on reaching the $10 million milestone! It clearly demonstrates the availability and potential of investment crowdfunding capital to support the growth of Canadian businesses."

See:  How to Effectively Market an Equity Crowdfunding/Reg A+ Offering

Investment crowdfunding is an alternative source for companies seeking capital to grow their businesses. Partly available in some Provinces it was fully legalized in 2015. Crowdfunding not only allows Canadians to invest in private companies, from as little as $100, but it allows companies access to capital and a community of stakeholders. A recent example, and part of the $10 million raise, is Red Mountain, that enabled people to own a piece of a ski hill in British Columbia, Canada. Over $2,500,000 was raised through the campaign, from 742 backers, many of whom gained perks such as lift passes as well as shares.

About FrontFundr:

FrontFundr is an online investing platform that empowers Canadians to find and make direct investments in the private companies they believe in - and become stakeholders in their future. FrontFundr's online exempt market dealer (EMD) status plus its modern technology lets users across Canada easily invest in innovative growth businesses in under 12 minutes and starting from $250. Own your share.

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry in Canada.  For more information, please visit:  ncfacanada.org

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Canadian Crowdfunding Industry Highlights Urgent Need for Changes

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Locavesting | Staff Writer | March 16, 2018

Some Americans may envy Canada’s charming president and progressive politics, but when it comes to investment crowdfunding, the two countries are in the same boat.

In an appeal to government regulators this week, Canadian crowdfunding and financial tech advocates called out an “urgent need for regulatory changes and government support” for Canada’s entrepreneurial and capital raising ecosystem. That includes streamlining the country’s crowdfunding regulations and educating the public about the laws.

“Entrepreneurs are reluctant to start up in Canada due to the high costs (relative to a small financing), and significant ongoing regulatory burdens. Investors are inhibited by caps on investment and limited education about  the benefits and downside risks of crowdfunding and other exempt financings. This pushes many talented entrepreneurs and investors to overseas jurisdictions that better understand (and support) innovation and the economic potential of start-ups and small businesses,” writes the National Crowdfunding & FinTech Association (NCFA), a nonprofit Canadian trade group.

In Canada, online capital-raising rules vary by province, and efforts to “harmonize” the laws have fallen short.

The U.S. is in a slightly better position. The U.S. crowdfunding industry falls under a single federal framework, the 2012 JOBS Act.  However, 34 states have passed intrastate laws that can vary greatly.

But U.S. complaints are similar in other regards, including the need to improve burdensome regulations and educate the public about the new laws.

Of particular note, the NCFA decried the lack of support and incentives for education.

“Introducing new requirements/exemptions without a robust ongoing educational program is like asking new drivers to follow a road that contains no ‘signs’, without maps,” writes the NCFA.

In a 2017 survey by the NCFA, over 70% of respondents said more education was required to attract more investors to crowdfunding. A lack of awareness and education around crowdfunding laws is frequently cited as the number one challenge in the U.S. as well.

Data collection and analysis is also lacking, according to the NCFA.

Encouraging Investors

One area where Canada stands out may be in offering tax incentives for investors, although not specifically in conjunction with crowdfunding. The report doesn’t mention it, but some Canadian provinces, such as New Brunswick, have long offered tax incentives for local investors that have been held up as a model for the U.S.

Still, those efforts pale compared to the UK, where investment crowdfunding is more mature and investors may easily invest in local companies and startups via tax-advantaged retirement accounts. In the U.S., that requires setting up a separate (and cumbersome) self-directed IRA.

The NCFA warns that, without action, Canada risks falling further behind in global competitiveness and financial innovation. They cite an Ernst & Young “Fintech Adoption Index” that put Canada near the bottom of global fintech adoption rates, at just 18 percent. The U.S. clocked in at 33%, the average adoption rate, trailing countries such as Australia (37%), the UK (42%), India (52%) and China (69%).

The NCFA concludes with recommendations, including streamlining the regulations and potentially adopting British Columbia’s more preferable framework. It also advocated for regulatory “sandboxes” that allow for controlled financial experimentation—an idea that has been implemented in the U.K. and proposed in the U.S.

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Fintech in Canada: The Good, The Bad & The Ugly

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CrowdfunInsider | JD Alois | Mar 14, 2018

Last week during the National Crowdfunding and Fintech Association of Canada’s annual event, FFCON2018, there was a single presentation that provided a state of Fintech in Canada. Professor Michael King,  from the Scotiabank Digital Banking Lab @ Ivey Business School, delivered an excellent synopsis of what’s working and what’s not.

Entitled “the Current State of Fintech in Canada: The Good, The Bad and The Ugly,” King’s deck bulleted out both the high and the low.

So what is working out well up North?

Canada is growing Fintech startups. There is more than 800 today which is pretty respectable for a smaller country.

Areas of prominence include Blockchain, AI, Payments, peer to peer and more.

See: CSE aims to be Canada’s first blockchain platform for trade clearing and settlement

There is an increasing number of incubators and accelerators to promote sector growth, plus recognition by universities and other support sectors that Fintech is of strategic importance.

What is not so good, or perhaps kind of bad?

Traditional financial institutions have been slow to adopt Fintech innovation or partner with emerging disruptive financial firms. King provided a painful, but probably not a unique example, where a traditional bank required 120+ signatures to partner with Fintech firm.

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  For more information, please visit:  ncfacanada.org

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Heard in Toronto at #FFCON18: Blockchain is the Future, Alternative Finance is Now

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This past week, the National Crowdfunding and Fintech Association of Canada(NCFA) held its annual event in Toronto that saw over 500 participants join to discuss Fintech from around the world. FFCON18 Velocity covered the wide-ranging spectrum of current topics in the realm of alternative finance including Blockchain, cryptocurrency and other forms of financial innovation. The event was appropriately held in the Design Exchange in downtown Toronto – the former home of the Toronto Stock Exchange.

The NCFA always puts on a good event bringing together a diverse group of industry participants including investors, entrepreneurs, platforms and public officials – including provincial regulators. Crowdfund Insider was pleased to be involved in the annual event. Today, we are sharing just a few of the interesting quotes we heard while participating in FFCON18.

 

“Nobody knows anything. We are at the very beginning. It is going to be different from anything anyone is thinking right now.”

“Bitcoin has lost the race to be a currency but it is going to be a great store of value. A better gold.”

“I am a believer in utility tokens but security tokens are going to be bigger.”

“Regulators have two options: Regulators can roll out the red tape or roll out the red carpet. The genie is already out of the bottle.” – Lou Kerner, CryptoOracle

 

“When Ripple got started they were not exactly sure where to apply their technology.” – Diana Adachi, CEO of Pegasus Fintech

See: 

CSE aims to be Canada’s first blockchain platform for trade clearing and settlement

OSC approves Canada’s first blockchain ETF

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The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  For more information, please visit:  ncfacanada.org

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