Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Personal Finance
The Role of a Crypto Wallet in Canada’s Digital Finance Future
Sep 6, 2025
Photo by Mariia Shalabaieva on Unsplash
Canada’s Evolving Digital Finance Landscape
Canada’s financial system is globally respected for its stability, but innovation can no longer remain on the sidelines. With open banking frameworks advancing and regulators sharpening their stance on digital assets, questions of accessibility and transparency are more pressing than ever. Canadians are increasingly engaging with digital assets, not just as speculative investments but as essential tools for financial participation in a modern economy.
At the center of this shift sits the crypto wallet. More than a technological accessory, wallets are now a cornerstone of digital finance—granting individuals the ability to manage, transfer, and safeguard assets while bridging the divide between traditional banking and decentralized networks.
What Is a Crypto Wallet and Why Does It Matter
A crypto wallet is not merely a digital storage unit—it is a direct gateway to blockchain ecosystems. Unlike conventional bank accounts, which rely on third parties, wallets allow users to control their assets directly. There are two primary models: custodial, where a provider manages the private keys, and non-custodial, where individuals hold full responsibility.
For Canadian investors, this choice is critical. Custodial solutions can simplify access, but they also carry counterparty risks if a provider fails. By contrast, non-custodial tools such as crypto wallet platforms place full control into the user’s hands, aligning with the ethos of financial sovereignty. This distinction underscores why wallets are more than conveniences—they are instruments of independence.
Regulation Meets Technology in Canada
Canada was among the first jurisdictions to approve crypto ETFs, signaling openness to innovation. Yet today’s regulatory direction is more cautious. Authorities are pressing for tighter oversight on platforms, disclosures, and compliance standards. For wallets, this regulatory momentum could lead to higher requirements for transparency, consumer protections, and cyber resilience.
The broader integration of wallets into payment infrastructure has already begun. With certain crypto firms gaining access to Canada’s payment rails, the stage is set for wallets to become interoperable with fiat systems. In practice, Canadians could soon experience frictionless transfers between digital assets and traditional currency.
Security Standards and Risk Management
Security remains the defining benchmark for wallets. Cyberattacks, phishing attempts, and compromised keys are persistent risks. Regulators are expected to demand greater consumer protections, prompting providers to adopt advanced safeguards, including multi-factor authentication, hardware-based cold storage, and clear user disclosures. For Canadians, the environment may become safer, but responsibility will remain personal: users must still learn how to manage and protect their own access credentials.
The Consumer Shift Toward Digital Control
Beyond regulation, consumer behavior is reshaping the market. Millennials and Gen Z are particularly comfortable with digital finance, and many view cryptocurrency as integral to both their financial strategy and personal identity. For these demographics, wallets are not just repositories of value—they are access points to decentralized finance, digital collectibles, and new forms of online interaction.
Education as a Priority
Knowledge gaps, however, continue to slow adoption. Many Canadians still lack clarity on how wallets function, how private keys should be safeguarded, or the differences between custodial and non-custodial services. Education will therefore be essential. Financial literacy programs, regulatory guidance, and industry-led initiatives can help new participants enter the market with the awareness necessary to protect themselves while taking advantage of new opportunities.
Wallets as a Bridge to Open Banking
Canada’s transition toward open banking presents an opportunity to align wallets with mainstream financial infrastructure. If wallets can integrate seamlessly with bank APIs, Canadians could one day manage both digital assets and traditional finances within unified platforms. Such interoperability could transform wallets from alternative tools into standard components of financial life.
Institutional Adoption and Retail Growth
Financial institutions are also moving into this space. Banks and fintechs are exploring wallets not only for crypto but for tokenized securities, carbon credits, and digital identity management. On the retail side, adoption is accelerating, with wallets increasingly used for remittances, cross-border commerce, and even philanthropic donations. These diverse applications highlight the wallet’s evolution from niche technology into core infrastructure.
Canada’s Position in the Global Context
Around the world, governments are racing to define their digital finance frameworks. The United States, the European Union, and key Asian markets are setting clearer policies that balance innovation with accountability. Canada must decide whether to keep pace or risk losing ground in global competitiveness.
See: DPI Digital Finance Works. Why Is Canada Still Waiting?
For consumers and institutions alike, wallets represent far more than a trend. They are the building blocks of digital economies, enabling direct engagement with decentralized networks and laying the foundation for new models of commerce. In Canada’s financial future, wallets will not sit on the margins—they will be central to how value moves, how identity is verified, and how trust is maintained.
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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How to Avoid Phishing Attacks on Your Crypto Wallet
Sep 4, 2025
Cryptocurrency adoption continues to grow worldwide, but with opportunity comes risk. Among the most common threats faced by digital asset holders are phishing attacks. Unlike technical hacks that exploit blockchain code, phishing targets the weakest link in the chain: human behavior. Scammers pose as trusted sources to trick users into handing over their private keys or connecting to fraudulent websites, leading to irreversible asset loss.
Understanding how phishing works and knowing how to identify warning signs are essential steps for protecting your funds. This guide explains what phishing in crypto looks like, the most common tactics scammers use, and practical strategies to keep your wallet safe.
What Is a Phishing Attack in Crypto?
A phishing attack is a form of social engineering where attackers impersonate legitimate companies, wallets, or exchanges in order to deceive users. Their goal is simple: gain access to sensitive data such as recovery phrases, private keys, or login credentials. Once obtained, funds can be drained instantly, with little to no chance of recovery.
Phishing in the crypto ecosystem often takes the shape of:
- Emails or text messages directing users to fake wallet interfaces.
- Malicious pop-ups asking for seed phrases.
- Lookalike domains that mimic reputable platforms.
Unlike traditional banking, cryptocurrency transactions are irreversible. If funds are sent to a scammer’s address, there is no central authority to intervene. This is why vigilance and proactive defense are critical for every investor.
When evaluating different wallet solutions, security should always be a top priority. For example, some guides highlight the best Ripple wallet options for users holding XRP, ensuring they choose tools with robust protection against common scams.
Common Types of Phishing Scams Targeting Wallets
Fake Wallet Apps
Attackers publish counterfeit versions of popular wallets on unofficial websites or third-party app stores. Once downloaded, these apps are programmed to intercept recovery phrases and siphon assets.
Email and Messaging Phishing
Victims receive emails, direct messages, or SMS alerts that appear to come from an exchange or wallet provider. They often warn of “account suspensions” or “urgent security updates” and contain malicious links.
Malicious Airdrops and Tokens
Scammers exploit hype around new token launches by offering free airdrops. Connecting a wallet to claim them can grant hidden permissions that drain assets. Some fraudulent tokens even mimic legitimate ones by using similar names and ticker symbols.
Social Engineering and Impersonation
Fraudsters infiltrate online communities, posing as project developers or customer support staff. Once trust is built, they ask users to “verify” accounts by sharing sensitive details.
How to Spot Red Flags Early
Recognizing the signs of phishing can prevent costly mistakes.
- Suspicious URLs: Fake websites often use subtle spelling differences or omit HTTPS encryption.
- Unsolicited offers: Unexpected giveaways or too-good-to-be-true offers usually mask scams.
- Urgency tactics: Phrases like “act now” or “limited time only” are designed to bypass rational thinking.
- Requests for private keys or seed phrases: No legitimate service will ever ask for this information.
- Unrealistic guarantees: Promises of guaranteed profits or zero-risk investments are classic red flags.
Users should slow down whenever they encounter unexpected requests and verify authenticity before interacting.
Best Practices to Protect Your Crypto Wallet
Use Official Sources Only
Download wallet apps exclusively from verified app stores or official websites. Bookmark authentic domains to avoid typosquatting.
Double-Check Before Connecting
Before linking a wallet to any decentralized application (dApp), verify the domain carefully. Scammers often set up fake interfaces to capture login details.
Store Recovery Phrases Securely
Seed phrases should be written down on paper or stored in a secure offline method. Avoid screenshots, cloud storage, or sending them over messaging apps.
Enable Extra Layers of Security
When available, use two-factor authentication (2FA) and biometric verification. Although private keys remain the ultimate control, added safeguards can help protect access.
Leverage Security Tools
Modern wallets provide integrated tools to scan for suspicious tokens or connections. Using a trusted provider like Bitget Wallet allows users to benefit from features designed to identify potential threats in real time.
Why Choosing the Right Wallet Matters
While individual vigilance is important, the choice of wallet plays a central role in user safety.
- MetaMask: Known for decentralization but limited in cross-chain support and trading functionality.
- Phantom: Native to Solana but restricted to a single blockchain, offering less flexibility for multi-chain investors.
- Trust Wallet: Part of the Binance ecosystem, yet with weaker memecoin and cross-chain coverage.
In contrast, Bitget Wallet integrates a wide range of features:
- Used by over 80 million people worldwide.
- Supports more than 130 blockchains and 1 million tokens.
- Provides secure stablecoin storage alongside trending memecoin trading.
- Enables daily crypto payments through PayFi, directly via Mastercard or Visa.
For users seeking a balance of usability and protection, Bitget Wallet positions itself as a top crypto wallet option, making Web3 exploration accessible and secure.
Managing digital assets does not need to be overwhelming. With Bitget Wallet, you can safely explore the latest memecoins, store stablecoins securely, and transact across blockchains. Start by choosing a top crypto wallet that combines security, flexibility, and ease of use.
Conclusion: Stay Ahead of Phishing Threats
Phishing remains one of the most persistent threats in the cryptocurrency space. By understanding how scams work, learning to recognize red flags, and practicing safe storage habits, investors can significantly reduce their risk exposure. The right wallet acts as both a tool and a safeguard, offering features designed to keep users one step ahead of malicious actors.
See: SEC and CFTC Open Door to Spot Crypto Trading
Strong security requires both awareness and the right technology. Download Bitget Wallet today to secure your stablecoins, trade memecoins, and manage assets across 130+ blockchains with confidence.
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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Digital Asset Inheritance is Now Mainstream
Digital Assets | Aug 27, 2025
Image: Freepik
Fintechs and Financial Institutions Need to Formalize Digital Estate Planning to Protect Families and Clients
Digital lives now include high value property and high emotion content. Crypto's digital assets and tokens sit next to family photos in the cloud and personal emails, but the rules for accessing them after someone's death (or incapacity) vary widely between platforms and jurisdictions.
See: Fidelity Report Insights on Digital Assets in 2025
In Canada, Bitcoin ownership was about 10% in 2023 per the Bank of Canada’s Canadian Bitcoin ownership in 2023, while the CSA 2024 Investor Index shows that 33% of investors under 35 years old hold crypto assets. Growing exposure combined with the Canada Revenue Agency’s disposition at death requirement, makes digital estate planning a growing mainstream need instead of a niche topic that could get buried (no pun intended).
Canadian Laws and CRA Rules on Digital Inheritance
Four provinces and territories in Canada have passed laws that give executors and trustees specific rights to access digital assets.
- Saskatchewan’s Fiduciaries Access to Digital Information Act came into force on June 29, 2020.
- Prince Edward Island’s Access to Digital Assets Act took effect in 2022.
- New Brunswick passed the Fiduciaries Access to Digital Assets Act in December 2022.
- Yukon enacted the Fiduciaries Access to Digital Assets Act on November 15, 2023.
KPMG notes that these four are the only Canadian jurisdictions with dedicated statutes so far with Alberta adding digital accounts to executor duties through other legislation. Their overview of Canadian gaps notes that most provinces still lack clear rules, a challenge also underlined in the ALRI’s analysis of digital estate law.
See: The Complexities of Auditing Digital Assets
The Canada Revenue Agency states that, “a person who died is considered to have disposed of all the property they own right before death.” That disposition also applies to crypto which is considered a capital property, with gains included on the final return. Executors and advisors need procedures that capture wallet inventories, cost base evidence, and transaction records. See CRA’s guidance on capital gains at death and its crypto asset tax page.
Practical Steps for Digital Inheritance
Big platforms provide inheritance tools that users must enable to access them. Apple’s Legacy Contact and Digital Legacy let a named person request access using an access key plus a death certificate, while Google’s Inactive Account Manager lets users direct data sharing or deletion after a chosen period of inactivity. For custody and to exchange accounts, some platforms offer support such as Coinbase deceased account handling and Binance inheritance appeal show families how to proceed.
Practical client checklist: Confirm a complete inventory of digital property and accounts, enable Apple Legacy Contact or Google Inactive Account Manager where applicable, include digital assets and directions in the will or memorandum, and securely record wallet locations and recovery material.
Read: Trusty Raises $1M to Modernize Estate Planning
Fintechs and advisors should help clients list all their digital accounts, turn on inheritance tools offered by platforms, and record their wishes in estate documents. Advisors can use checklists that follow provincial laws and make sure keys and login details are stored securely. Putting these steps in place builds trust with clients and prevents problems when someone dies or becomes unable to manage their accounts.
Cross-border Compliance in Digital Estate planning
Globally, the tax treatment of digital assets after death remains inconsistent. The UK, US, and Canada all vary in their approach, which can complicate planning for cross-border families. An in-depth analysis of inheritance tax for digital assets across jurisdictions highlights these differences.
For estates with US connections as of 2021, a total of 47 states have enacted laws based on the Uniform Law Commission model, see Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). If users don't enable official legacy features or provide clear authority, custodians could refuse access based on terms of service, forcing families to obtain court orders from foreign jurisdictions.
Outlook
Digital estate planning has moved from fringe cases to everyday expectations. The legal tools exist, platform features are available, and client demand is growing. NCFA members should operationalize digital inheritance today to create and protect real value for families while improving compliance and client experience.
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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6 Smart Strategies to Get the Most Out of Your RESP
Aug 27, 2025
Image: Unsplash/PiggyBank
Putting a child through higher education is an expensive affair. The average annual tuition fee is over $7,000, with some fields like dentistry exceeding $24,000 per year. That’s not including books and living expenses like transportation, accommodation, food, and healthcare, so saving money early is key.
A registered education savings plan (RESP) gives you two powerful benefits. Firstly, you can access government grants. Secondly, you can take advantage of tax-sheltered growth. Here are practical strategies to help you use your RESP wisely and get the most out of every dollar you put in.
1. Maximize Government Contributions
Through the Canada Education Savings Grant (CESG), the government can match your contributions by up to 20%. As an example, let’s say you put $2,500 into your RESP one year. The government will add $500. That’s the maximum amount per year per child. If you contribute less, your deposit can still be matched up to 20%. For example, if you contributed $1,000 in a given year, the government could add $200.
2. Start as Early as Possible
The earlier you start saving, the more earning potential your money has, thanks to compound interest. Even small monthly contributions can add up over time. For instance, if you can afford just $50 a month starting when your child is born, you’ll contribute $10,800 by their 18th birthday. With grants and investment growth, the RESP could reach over $20,000 by that time, based on a 2.4% annual compound return.
3. Keep an Eye on Limits
RESPs have lifetime limits on how much you can contribute ($50,000 per child). Go over that, and the extra amount is taxed at 1%. There’s also a cap on how much grant money you can receive: $500 per year and $7,200 total per child.
Let’s say you contribute a lump sum of $50,000; you’d only receive a CESG contribution of $500 for the first year, but the money would have the maximum time to grow. On the other hand, if you spread out the same contribution over 15 years, you could collect the full $7,200 per child.
Which approach works better depends on your investment returns. With higher growth rates, the lump sum is often more beneficial. With lower returns, the grant can be more valuable.
4. Catch Up on Missed Years
If you missed contributions in the past, you can collect two years’ worth of CESG in a single year by contributing $5,000. However, you can only catch up one year at a time. If you missed five years, it will take another five years of doubling contributions to collect all the grant money.
5. Look Into Extra Grants
The good news is the CESG isn’t the only support available. Depending on your income or where you live, you may qualify for the Additional Canada Education Savings Grant (ACESG), Canada Learning Bond (CLB), or provincial programs. The CLB is designed for lower-income families. You don’t even need to contribute; in the first year, the government adds $500 to the RESP automatically. For the subsequent years that the child is eligible, it adds $100, up to a total of $2,000. In British Columbia and Quebec, programs include the B.C. Training and Education Savings Grant and Québec Education Savings Incentive.
6. Automate Your Contributions
Life is busy, especially with kids. It’s easy to forget about RESP contribution deadlines. The CESG calculations are based on a calendar year, so if you forget to deposit before December 31, you’ll miss that year’s grant. The easiest solution is to set up automatic contributions. Most RESP providers let you set up pre-authorized payments from your bank account.
Endnote
An RESP is one of the smartest ways you can save for your child’s education, but like any tool, it works best when you use it right. Contribute enough to get the full CESG, start early, watch your limits, catch up if you fall behind, claim all the grants you’re eligible for, and automate where possible.
See: Report Insights: DIY Investors in Canada on the Rise
Applying these strategies will help you get the best value for your money and give your child the strongest start when the time comes for college or university.
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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Asbestos Abatement During Renovations: Key Considerations
July 28, 2025
Image: Freepik
Renovating an older property often brings hidden challenges, and one of the most critical is dealing with asbestos. This naturally occurring mineral was widely used in building materials for its heat resistance and durability until the late 20th century. However, asbestos poses significant health risks when disturbed, making it essential for homeowners, contractors, and property managers to understand the key considerations for safe asbestos abatement during renovations.
For residents considering renovations in Calgary, it is crucial to explore professional services for asbestos abatement Calgary to ensure the safety of all occupants and compliance with local regulations.
Understanding the Risks of Asbestos During Renovations
Asbestos fibres are harmless when left undisturbed within intact materials, but renovations can disrupt these materials, releasing microscopic fibres into the air. Inhalation of asbestos fibres is linked to severe health issues, including asbestosis, mesothelioma, and lung cancer, often with long latency periods before symptoms develop. Therefore, even minor renovations like drilling, sanding, or demolition can present significant risks.
Identifying Asbestos in Your Property
Before any renovation project, it is essential to determine if asbestos is present in the building materials. Asbestos can be found in:
- Pipe and boiler insulation
- Vinyl floor tiles and adhesives
- Popcorn ceilings
- Cement siding and roofing materials
- Plaster and joint compounds
- HVAC duct insulation
See: Robinhood’s WealthTech Push and Lifestyle Finance
A certified asbestos inspector should conduct a thorough assessment before any renovation work begins. Attempting to identify asbestos visually is not reliable, and proper testing in a certified laboratory is the only way to confirm its presence.
Legal and Safety Regulations
Asbestos abatement during renovations is highly regulated to protect workers and occupants from exposure. In Canada, federal and provincial regulations require specific procedures for asbestos removal, including notifying appropriate authorities before abatement work begins. Contractors must follow established protocols for containment, removal, and disposal, including:
- Sealing off the work area with plastic sheeting
- Using negative air pressure systems to prevent fibre release
- Wearing proper personal protective equipment (PPE)
- Following approved disposal procedures at designated facilities
Hiring Certified Professionals for Asbestos Abatement
Attempting DIY asbestos removal during renovations is not only dangerous but also illegal in many regions. Certified asbestos abatement professionals have the expertise, equipment, and training required to manage the process safely and efficiently. Hiring professionals ensures compliance with legal requirements and protects your family, workers, and the environment from asbestos contamination.
Preparing for Renovations in a Property with Asbestos
If asbestos is detected in your property, the next step is to develop a comprehensive plan for its safe removal or encapsulation before renovations begin. Key steps include:
- Notification and Permits: Inform local authorities and obtain necessary permits for asbestos removal.
- Creating a Timeline: Factor in the asbestos abatement timeline before scheduling the renovation work.
- Budget Planning: Asbestos abatement can add costs to your renovation project, so it is essential to allocate budget resources accordingly.
- Communication with Contractors: Ensure all contractors involved in the renovation are aware of the asbestos abatement process to avoid accidental disturbances.
Encapsulation vs Removal
Depending on the condition and location of asbestos materials, professionals may recommend encapsulation instead of complete removal. Encapsulation involves treating asbestos-containing materials with a sealant to prevent fibre release while leaving the material in place. This method may be suitable for materials in good condition that are unlikely to be disturbed during renovations. However, if renovations require cutting, drilling, or demolition, removal is often the safer and legally compliant option.
Protecting Occupants During the Abatement Process
Safety precautions must be taken to protect occupants during the asbestos abatement process:
- Residents and non-essential workers should vacate the premises or the specific area undergoing abatement.
- Clear signage should be placed around the work area to prevent entry.
- Air quality monitoring should be conducted during and after abatement to ensure the environment is safe for re-entry.
Post-Abatement Clearance and Verification
After asbestos removal, a final inspection and air clearance testing should be conducted to confirm that asbestos fibres are no longer present in the air and that the area is safe for renovations to proceed. Clearance certificates may be required before renovation activities can resume, ensuring the safety of all workers and occupants moving forward.
Long-Term Benefits of Proper Asbestos Abatement
While asbestos abatement may feel like an additional burden during renovations, it brings significant long-term benefits:
- Health Protection: Prevents exposure to hazardous fibres for your family and workers.
- Legal Compliance: Avoids fines and legal issues associated with improper handling of asbestos.
- Property Value: Proper abatement can enhance your property’s market value, assuring potential buyers that the home is safe and compliant.
- Peace of Mind: Ensures your renovation project proceeds safely, without hidden health risks.
Conclusion
Asbestos abatement during renovations is a critical aspect of ensuring the safety of your family and workers while protecting your investment in the property. Identifying asbestos early, hiring certified professionals, and following regulated procedures help prevent serious health risks and costly legal issues in the future.
If you are planning a renovation project in an older property, consider working with trusted professionals like Double Clean Restoration to handle asbestos abatement safely, allowing your renovations to move forward without compromising health and safety.
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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FCA Review of Deferred Payment Credit Rules (BNPL)
BNPL | July 23, 2025
Image: Freepik
FCA Consultation on New Consumer Focused Rules to Regulate £13 billion BNPL sector by July 2026
On July 18, 2025, the Financial Conduct Authority (FCA) published their approach to regulating Deferred Payment Credit (DPC), otherwise known as 'Buy Now Pay Later' (BNPL), or interest free credit service if repaid in twelve or fewer instalments within 12 months.
From July 15, 2026, third party lenders that provide DPC to finance purchases must be authorised by the FCA. Merchants that offer their own DPC directly and broking activity remain outside scope.
See: UK Exempts In-home BNPL Sellers From Licensing
The FCA says its approach is proportionate and designed to reduce consumer harm without creating unnecessary burdens. It relies on the Consumer Duty to deliver good outcomes while adding specific rules where gaps exist. The aim is to build trust in DPC, support financial resilience, and promote sustainable economic growth.
Regulatory Concerns
DPC lending has expanded rapidly from £0.06 billion in 2017 to more than £13 billion in 2024. The FCA Financial Lives Survey reports that 20% of UK adults or about 10.9 million people used DPC in the twelve months to May 2024.
BNPL is growing fast and because it's been exempt from regulation, borrowers may not receive enough information before taking on debt and some lending may be unaffordable (akin to payday lenders?). The FCA notes that DPC users are more likely to be in financial difficulty than the average broader population.
Proposed Rules
- Information Disclosure - The FCA proposes that firms present key product information before an agreement is made and provide it again afterwards in a durable format that customers can store and read. Required elements include repayment amounts and dates the amount of credit late fee triggers consumer rights such as withdrawal or cancellation and whether a credit search will take place
- Creditworthiness and treatment of borrowers - Existing FCA Consumer Credit Sourcebook rules on creditworthiness (CONC 5.2A) would apply to DPC so lenders must assess whether customers can repay without harming their wider finances. The FCA links this to concerns about arrears late fees and borrower vulnerability and intends that firms provide support where customers are in or approaching financial difficulty in line with CONC 7
See: BNPL Plans Are Starting to Affect Credit in Canada
- Missed Payments and Defaults - Standardised requirements for borrower communications and fair treatment under CONC 7
- Consumer Duty - Firms must act in good faith, avoid expected harm, and support consumers to meet financial objectives throughout the journey
- Dispute Resolution - All DPC borrowers will have access to the Financial Ombudsman Service
- Data Reporting - Introduction of Product Sales Data (PSD) submissions to enable FCA supervision
Implementation Timeline
- Consultation deadline is September 26, 2025
- Policy Statement with final rules can be expected early 2026
- Regulation starts July 15, 2026
- Companies can continue operating while seeking full authorisation under a temporary permissions regime
Complete the online response form for CP25/23 or email: cp25-23@fca.org.uk
Why It Matters
The FCA's proposed rules look to reduce avoidable harm from missed payments and unclear terms while maintaining access to short term interest free credit, for those who can afford it. With 20% of the adult UK population using DPC/BNPL in the last 12 months, it's near time that the FCA's rules are in market for consultation. It is designed to boost trust and bring sustainable economic growth to the sector.
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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Trusty Raises $1M to Modernize Estate Planning
Financing | July 22, 2025
Image: Freepik/Drazen Zigic
Trusty Secures $1M to Help Families Organize and Share Legacy Wishes Using AI
On July 15, 2025, Toronto-based Trusty announced it has raised $1 million in pre-seed funding to expand its AI-powered estate planning platform. The round was co-led by Relay Ventures and Graphite Ventures, with support from Mistral Venture Partners and several angel investors.
With more than $84 trillion expected to be passed down over the coming decades across North America, many families still rely on handwritten Letters of Wishes, which are easy to lose and often lack context. Trusty updates this with a modern digital experience that works alongside legal wills and estate documents.
See: Robinhood’s WealthTech Push and Lifestyle Finance
Trusty helps families record and organize assets, share intentions, and reduce inheritance related conflicts that can happen when estate planning lacks clarity. The app uses artificial intelligence to detect and categorize valuables, interpret documents, and store messages for loved ones.
Randy Frisch, founder and CEO of Trusty:
“Wills do not tell the whole story, and the gaps from misplaced assets and unclear intent create confusion and conflict. Trusty makes it easy to share your wishes clearly and securely, so families are brought together, not apart.”
Trusty is also forming partnerships with financial institutions, estate planners, and advisors. One early partner is Purpose Unlimited, which is exploring how to offer Trusty to its financial advisor network.
Closing
Outdated estate planning hasn't kept pace with digital life, causing families stress, uncertainty, and disputes.
See: Fintech Opportunities in Wealthy Retired Boomer Markets
Trusty is using AI to help individuals clarify their intentions and give heirs the guidance they need. This early investment is aligned with the broader push to make wealth transfer easier, more transparent, and human.
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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