Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Regtech, Compliance, Governance
U.S. Brain Drain and Implications for Canadian Fintech
Economy and Policy | Aug 25, 2025
Canada Must Build Up Data, Talent, and Fintech Trust as U.S. Expertise Fades
Nearly three decades ago, Carl Sagan warned in The Demon-Haunted World (1996) that when technological power is concentrated in a few hands and public institutions lose expertise, societies risk “sliding, almost without noticing, back into superstition and darkness.”
On Aug 22, 2025, Andrea Bonime-Blanc in a LinkedIn post discusses how recent U.S. federal budget cuts and policy changes are accelerating a “brain drain” of scientific and economic expertise. This article looks at the business impacts and implications for fintech of the significant human capital and policy changes taking place in the U.S. and how Canada and other collaborative countries should be responding.
Business Impacts of U.S. Brain Drain
1. Data Integrity and Financial Stability
The departure of experts at the Bureau of Labor Statistics (BLS) erodes confidence in U.S. economic indicators that businesses and markets rely on.
- President Trump fired BLS Commissioner Erika McEntarfer on August 1, 2025 after controversy over jobs report revisions
- The July 2025 jobs report showed 73,000 jobs gained and revisions down of 86,000 in May and 64,000 in June
- In July 2025 only 58% of employers answered the U.S. government’s payroll survey, which normally tracks over 120,000 workplaces. With so few responses, the jobs numbers are less reliable and more likely to be revised
Takeaway: 👉 For fintech lenders and investment platforms that depend on U.S. labor and wage data, model uncertainty and risk costs may increase.
2. Cybersecurity and AI Modernization
Cuts to cybersecurity agencies increase systemic risk for payments and banking networks, and weaken the ability to build secure AI systems.
In 2025, the main federal agency that protects critical infrastructure including finance, energy, and healthcare, the U.S. Cybersecurity and Infrastructure Security Agency (CISA), had about $3 billion in funding and just over 3,600 staff. These resources cover everything from monitoring threats to helping banks and utilities recover from cyberattacks. Lawmakers are now weighing a $135 million cut to CISA’s 2026 budget or equal to about 4.5% of its funding. On paper it may sound small, but it reduces the agency’s ability to share intelligence, build new defenses, and support partners in both the public and private sectors.
Takeaway: 👉 Reduced federal cyber capacity raises exposure for cross-border fintech systems.
3. ESG and Risk Modeling Data
Environmental and climate science cuts reduce access to datasets critical for insurers, lenders, and ESG related products.
- EPA workforce cut from 16,155 in January 2025 to 12,448 , a 23% reduction with closure of its scientific research division
- NOAA terminated staff for its Climate.gov portal on May 31, 2025, halting new content
- NOAA seeks a 17% workforce cut after firing hundreds of probationary employees in early 2025
Takeaway: 👉 For fintech ESG products, fewer trusted U.S. datasets could degrade climate related financial models. Canada can step in with trusted open-data collaborations.
4. STEM Talent and Innovation Hubs
Graduate students and researchers face reduced U.S. funding, pushing talent abroad.
- PBS reports that at least 17 immigration judges were fired across 10 states in July 2025, adding delays to skilled worker case processing
Takeaway: 👉 Processing delays affect STEM talent inflows. Canada could capture this talent to strengthen fintech innovation by accelerating recruitment by offering scholarships, innovation hub partnerships, and fast-track visas.
5. Compliance, Governance, and Trust in AI
Federal compliance and AI governance structures are weakening, raising trust issues.
- Elizabeth Kelly the inaugural director of the U.S. AI Safety Institute departed in February 2025 leaving a leadership vacuum
Takeaway: 👉 With U.S. leadership unsettled, Canada and the EU can shape AI assurance frameworks for fintech. Canadian regtech firms are well positioned to step up and help lead.
Practical Strategies for Canada’s Fintech Sector
Canada needs to open up the country as a trusted hub for financial data integrity, cyber resilience and AI governance by focusing on the following practical steps:
- Map out data sources and diversify away from over reliance on U.S. federal inputs
- Invest in AI enabled cybersecurity and fraud detection systems
- Explore alternative and open-source data partnerships to fill data gaps (NGOs, universities, private market collaborations)
- Support STEM students and researchers displaced by U.S. funding cuts
- Build compliance and governance tools that embed transparency into fintech systems
In Closing
The U.S. brain drain is visible in staff firings, layoffs, budget cuts and agency closures and contractions. Carl Sagan’s caution from 1996 reminds us that losing expertise erodes both science and democracy. By investing in data integrity, global standards, and fintech innovation, Canada can transform today’s U.S. retreat into a foundation for stronger, competitive growth. This is a chance for Canada to step up and lead.
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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Powell Opens Door to Rate Cut as Markets Surge
Economy | Aug 22, 2025
Image: Freepik
Powell Signals Possible September Rate Cut, Igniting Market Rally
On Aug 22 2025, Federal Reserve Chair Jerome Powell delivered his Jackson Hole speech that suggested an interest rate cut may be on the table as soon as September. His comments came as the central bank weighs a weakening labour market and persistent but easing inflationary pressures.
See: H1 2025 Global Fintech Funding Slows, Some Sectors Firing
Powell described a slowing economy with payroll job growth falling to just 35,000 per month over the past three months compared with 168,000 per month in 2024. The 4.2% unemployment rate is up from lows reached last year. He noted that downside risks to employment are rising even as tariff related price increases continue to flow through supply chains.
Image: US Unemployment Rate (Bureau of Labor Statistics)
Powell, Fed Reserve Chair, importantly said:
"[With policy already in restrictive territory] the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”
Markets Surge on Dovish Tone
Equity markets surged immediately following Powell’s comments. The S&P 500 and Nasdaq rose more than 1.5 percent by noon Friday, the Dow Jones Industrial Average climbed more than 900 points, and the Russell 2000 gained 3.8%. Treasury yields moved lower while the US dollar weakened. Crypto assets also rallied with bitcoin up 3.8% and ether jumping 13.2%.
Market participants interpreted Powell’s message as a strong hint at near term easing. The CME FedWatch tool now shows a near 90% probability of a 25 basis point rate cut in September. Analysts argue that Powell is signalling a tilt toward supporting jobs while treating tariff driven inflation as more temporary. The Fed’s tone has shifted from a singular focus on inflation to a more balanced consideration of employment risks.
Outlook
The Federal Reserve’s final decision will be based on incoming data. The August employment report and mid September inflation release will be critical in determining whether the Fed follows through with a rate cut. As Powell emphasized, monetary policy will depend on how the evolving balance of risks plays out.
Read: Fintechs Lead NPS Race as Banks Lag Behind
The bottom line is that Powell’s Jackson Hole remarks have repositioned the Fed’s policy stance. By acknowledging weakening labour conditions while downplaying longer lasting inflation threats, Powell has set expectations for a September rate cut, and markets have already pricing in an easier policy, triggering a broad a rally across stocks, bonds, and crypto.
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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H1 2025 Global Fintech Funding Slows, Some Sectors Firing
Global Fintech Report | Aug 22, 2025
Image: Pulse of Fintech H1 2025, KPMG
Fintech Investment Hits Five Year Low, but Digital Assets, AI, and Regtech Gaining
According to the KPMG Pulse of Fintech H1 2025 report (67 page PDF) published in August 2025, global fintech investment in the first half of 2025 fell to $44.7 billion across 2,216 deals, recording the lowest H1 total since early 2020. Investors remain cautious about elevated risks around higher interest rates, capital costs, and geopolitical uncertainty. Q2 2025 was particularly weak, with $18.7 billion across 972 deals.
Regional Divergence
- Americas attracted $26.7 billion, accounting for more than half of global fintech investment
- EMEA $13.7 billion, driven by large buyouts and consolidation activity
- ASPAC lagged with $4.3 billion, showing the most pronounced slowdown
Top Global Fintech Trends in H1 2025
1. Digital Assets Rebound Strongly
Investment in digital assets totalled $8.4 billion across 586 deals in H1 2025. Stablecoins attracted attention for payments and remittances in emerging markets, while tokenization platforms and infrastructure also captured capital. Circle's IPO anchored the sector’s strength, raising $1.1 billion with shares jumping 168% on day one.
2. AI Is Transforming Fintech Models
AI continues to boost fintech investment. Capital flowed into both AI native startups and to incumbents embedding AI in credit scoring, fraud detection, and customer engagement. Investors prioritized business models that combined growth with efficiency and risk control. See NCFAs coverage of AI Fintechs attracting a 242% valuation premium
3. Regtech Gains Momentum
Regtech attracted $2.1 billion across 190 deals in H1 2025. Adoption of automated KYC, AML, and reporting tools continues to grow as financial institutions look for cost savings and regulatory agility. GenAI in risk and compliance
4. Wealthtech and Insurtech Consolidation
Insurtech raised $4.8 billion across 141 deals in H1 2025, which is already greater than all of 2024. Wealthtech funding reached $0.9 billion across 14 deals, with AI enabled platforms a recurring theme. Both sectors experienced consolidation as incumbents prefer acquisitions over building new capabilities.
5. Payments Infrastructure Still the Backbone
Payments investment slowed to $4.6 billion across 242 deals in H1 2025, as investors grew more selective. But the sector is still foundational with capital being allocated to embedded finance, cross border platforms, and transaction monitoring. For Canada’s policy context see open banking delays and competitiveness and banks exiting merchant acquiring businesses like Moneris.
6. Cybersecurity Funding Is Soft
Cybersecurity specific fintech investment was just $0.1 billion across 26 deals in H1 2025. Despite heightened threat levels, most activity was concentrated at seed and early stages, reflecting investor caution toward scaling security focused fintechs.
7. IPOs and Exit Activity Pick Up
Exit momentum is returning. Circle’s successful IPO may open the door for additional digital asset platforms to list in H2 2025, boosting the case for fintech exit activity after years of lack lustre listings.
Top 10 Global Fintech Deals in H1 2025
- Preqin, $3.2B, London, UK, Information, Buyout
- Next Insurance, $2.6B, Palo Alto, US, Insurtech, M&A
- Binance, $2B, George Town, Cayman Islands, Digital assets, Late stage VC
- Esker, $1.7B, Villeurbanne, France, B2B and back office, Take private
- NinjaTrader, $1.5B, Chicago, US, Investment management, M&A
- Enfusion, $1.5B, Chicago, US, Wealthtech, M&A
- Hidden Road, $1.25B, New York, US, Digital assets, M&A
- Converge Technology Solutions, $916.5M, Toronto, Canada, Fintech services, Take private
- SafeSend, $600M, Ann Arbor, US, B2B and back office, M&A
- Plaid, $575M, San Francisco, US, B2B and back office, Late stage VC
See: U.S. ACCESS Act Advances to Ease Crowdfunding Rules
Outlook for Canada
For Canada, the data shows the window of opportunity for digital assets, AI, and regtech could attract investment with clear policy and infrastructure. The muted state of payments and open banking highlight gaps Canada must address to remain competitive. Clear rules, targeted support, and investment in digital infrastructure are critical to positioning Canadian fintech for growth in the second half of 2025 and beyond. See the crisis Canada and fintech cannot afford to waste
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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Grok Leak Triggers Global AI Privacy Alarm
AI | Aug 21, 2025
Image: Freepik/Rawpixel.com
xAI Exposed Private Grok Conversations to the Open Web, Breach of Trust in AI
On August 20, 2025, Forbes revealed that Elon Musk’s xAI had published hundreds of thousands of Grok chatbot conversations that became searchable on Google without warning. The exposed chats ranged from personal medical questions and passwords to instructions for creating drugs, malware, and even a plan to assassinate Musk himself.
AI Conversations Exposed to Search Engines
The problem was related to Grok’s “share” button. When users clicked it, the platform generated a unique URL that was publicly crawlable by search engines. There was no disclaimer or safeguard, and ultimately private exchanges and shared personal information would immediately be published and available online. TechCrunch reporting confirmed that thousands of Grok conversations containing sensitive data are indexed on Google.
Among the published material were uploaded spreadsheets, text documents, and conversations disclosing names, personal details, and at least one password. Experts noted that xAI’s approach mirrored and exceeded a failed OpenAI experiment last month in July 2025, when ChatGPT briefly allowed chats to be discoverable before pulling back after user backlash.
Opportunists are already exploiting Grok’s share function to manipulate Google search results, proving that careless design choices can spawn entirely new risks.
Why This Matters
The Grok and ChatGPT leaks illustrate the absolute need for privacy by design and transparent governance in AI. For fintech and financial services, the implications are massive given that trust is foundational.
See: Cybersecurity Bill C8 Raises Fintech Security Bar
If users believe that their conversations or sensitive data could be exposed online without consent, it will only hinder AI adoption and long term growth. With global media and regulators now scrutinizing the exposure, the lesson is clear: innovation cannot come at the expense of trust.
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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BIS Proposes Scoring Model for Crypto AML
AML | Aug 21, 2025
Image: Freepik/Sentavio
BIS Introduces AML Compliance Score Model for Crypto
On August 13 2025, the Bank for International Settlements (BIS) published a new bulletin proposing a fresh approach to anti money laundering (AML) compliance for cryptoassets. The paper suggests using the public record of blockchain transactions to generate AML compliance scores that could be applied when crypto is exchanged for fiat at off ramps.
Key Takeaways
- Traditional AML rules that rely on intermediaries are not effective for permissionless blockchains
- Blockchain transaction history can be used to assign AML compliance scores
- These scores could be checked at off ramps to prevent illicit funds from entering banks
- A scoring model could encourage a culture of duty of care across the crypto ecosystem
Why Traditional AML Approaches Fall Short for Crypto
Most AML rules today rely on regulated intermediaries like banks to perform customer checks, however that approach doesn't work well for permissionless blockchains, where records are maintained by decentralized validators instead of a single entity. Once crypto moves from an exchange to an unhosted wallet, conventional checks lose their reach. This gap is important as stablecoins have overtaken bitcoin as the main vehicle for illicit crypto transactions, accounting for an estimated 63% of criminal activity in 2024 according to both the Chainalysis 2025 crypto crime report.
How AML Compliance Scores Could Work
The BIS paper suggests using blockchain’s public history to assign compliance scores to cryptoassets. A higher score would indicate clean funds tied to verified wallets, while a lower score would suggest links to illicit addresses. Authorities could set thresholds for AML triggers, with banks, exchanges, or stablecoin issuers applying the rules at off ramps.
See: UK FCA Plans Full Crypto Licensing Regime by 2026
This scoring model could range from strict to permissive. A strict version would only allow coins from verified 'okay listed wallets'. A permissive version would block only those funds that have touched 'not okay listed addresses'. Intermediate models could combine multiple criteria, such as recent wallet history, periods of holding on allow listed addresses, or interaction with suspicious protocols.
This approach aligns with the Financial Action Task Force’s travel rule guidance for virtual assets and VASPs and complements Canada's domestic efforts by FINTRAC to strengthen monitoring of crypto transactions. By integrating compliance scores at conversion points, Canadian exchanges and banks could reduce risk while supporting innovation.
There are also implications for monetary policy and sovereignty. The BIS notes that widespread cross border use of stablecoins can undermine local regulations. Differentiating coins based on where they come from could help Canada maintain stronger controls over its financial system. In practice, clean stablecoins could trade at a premium over those with a questionable history, creating incentives for compliance.
Building a Duty of Care Culture
If compliance scores were the standard, all ecosystem participants from retail wallet holders to major exchanges would need to exercise a duty of care. That alone could spur growth of third party compliance services as the market moves to support cleaner transactions.
See: OSC Crypto Trading Platform Compliance Review Findings
Compliance scoring would increase new technical requirements for fintechs while opening the door for services and tools that help users assess risk. As Canadian and global regulators weigh next steps in crypto regulation, the BIS compliance scoring model offers an approach that combines blockchain transparency with regulatory safeguards. NCFA members can stay ahead of these changes by subscribing to the weekly NCFA newsletter for updates on compliance, policy, and fintech innovation.
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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Cybersecurity Bill C8 Raises Fintech Security Bar
Cybersecurity | Aug 19, 2025
Image: Freepik/DC Studio
Canada’s New Cyber Law Strengthens Compliance and Resilience for Banks and Fintechs
After years of delay, Canada is finally moving forward on cybersecurity legislation. The previous Bill C-26 stalled after critics raised concerns around due process and transparency issues with sweeping ministerial powers, unclear compliance costs, and provisions that would have allowed the government to rely on “secret evidence” in court challenges.
Now a newly introduced Bill C-8 An Act Respecting Cyber Security with the controversial secret evidence clause removed and the introduction of stronger oversight, make it more acceptable to industry stakeholders and politically viable. The legislation creates a new compliance regime with enforceable standards for critical infrastructure operators, including the banking system, and introduces penalties for non-compliance. For fintechs, the implications extend well beyond checklists and into how firms manage partnerships, payments, and cross-border data.
Bill C8 and PSP Oversight Raise the Bar
Bill C-8 arrives alongside the Bank of Canada's supervision of payment service providers (PSPs) under the Retail Payment Activities Act on September 8, 2025. Wallets, transfer apps, and other fintech PSPs must register, meet operational requirements, and demonstrate risk and security controls. The alignment of Bill C-8 with this deadline raises the bar for cyber resilience across the fintech ecosystem.
See: Ottawa Issues New Guidance for Biometric Privacy in Canada
Even if most fintechs are not directly listed under the new Critical Cyber Systems Protection Act, regulated banks and clearing systems will be. These institutions will port obligations onto their fintech partners through contracts, audits, and certifications. OSFI’s Guideline B-13 on technology and cyber risk requires federally regulated institutions to govern third-party risks, test resilience, and maintain continuous monitoring, so we can expect those same requirements to flow into fintech vendor and partner assessments.
Payments Canada has also emphasized that national systems such as Lynx are critical infrastructure requiring robust cyber resilience. For fintechs integrated with those rails, resilience is no longer optional. It has become a business differentiator that impacts customer trust and competitive positioning.
Data Flows, Threats, and Global Readiness
Policy analysis suggests that Bill C-8 could influence EU–Canada data adequacy assessments, critical for fintechs handling European customer data or operating cross-border platforms. A compliance strategy that includes strong governance and privacy readiness will put Canadian fintechs in a better position to scale globally. For fintechs, compliance is only the minimum floor. Continues monitoring and governance should be the program.
Outlook
Bill C-8 is a structural change in how Canada is approaching digital security. For fintechs, it means cyber readiness is inseparable from growth, compliance, and trust.
See: Fintechs Face Rising SaaS Security Risks, JPMorgan CISO
Those that move early to align with the expectations of both regulators and banking partners will not only meet compliance demands, but also stand out in a crowded marketplace. Canada’s fintech sector has an opportunity to turn these new rules into a foundation for competitive strength in a global digital economy.
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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Meta AI Rules Trigger Calls for Stricter Oversight
AI Ethics | Aug 15, 2025
Image: Freepik AI
Leaked Meta AI Rules Reveal Troubling Chatbot Interactions with Children and Race
A Reuters investigation into Meta’s AI content standards has revealed internal guidelines that allowed the company’s chatbots to have interactions with children, generate racially demeaning content, and produce false medical information if a disclaimer was included.
See: Tragic Incident Highlights AI Chatbot Risks for Teens
The 200-plus page policy called, "GenAI: Content Risk Standards", applied to chatbots across Facebook, Instagram, and WhatsApp. Meta confirmed the document was authentic and said some sections have now been removed. Meta described the controversial examples as “erroneous and inconsistent” with its policies, but admitted its enforcement was inconsistent.
Reuters reviewed internal policy materials that included Meta chatbot guideline examples related to children and examples related to race. These outlined scenarios the company considered acceptable and unacceptable under its AI behaviour standards.
Lawmakers Push for Investigation and New Rules
The leaked rules have triggered a bipartisan backlash in Washington. As reported by Reuters on the U.S. Senate response, Republican senators Josh Hawley and Marsha Blackburn have called on congress to investigate, linking the AI ethics gap to the Kids Online Safety Act (KOSA). The bill would require platforms to take stronger measures to protect minors. Democratic senators Ron Wyden and Peter Welch also condemned the policies. Wyden argued that Section 230 protections for online platforms should not apply to generative AI chatbots. Welch said the findings show the urgent need for enforceable AI safeguards.
Why This Matters for Canada’s AI Sector
Canada introduced a Voluntary Code of Conduct for generative AI in September 2023 that includes commitments to safety testing, fairness, transparency, human oversight, and privacy protection. These commitments aim to prevent the kind of harm seen in Meta’s internal examples, but the code isn't legally binding, and no AI specific enforcement exists until the proposed Artificial Intelligence and Data Act is passed. So until then, it means that AI guardrails in Canada is largely up to companies to self police and public pressure, unless existing laws such as the Criminal Code or hate speech provisions are triggered.
Conclusion
Unchecked AI rules can allow GenAI outputs that many see as ethically unacceptable. Canadian fintechs, AI developers, and digital platforms should build stronger, enforceable guardrails before regulators step in.
See: NIST Insights: GenAI Risk Management Framework
With the U.S. now advancing legislation like KOSA, Canadian companies could soon face a higher ethics bar at home and abroad.
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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