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
Trump’s U.S. Crypto Reserve Sparks Market Surge, Debate
Crypto | March 3, 2025
Image: Freepik
Reactions Pour In as U.S. Moves Toward Crypto Reserve
On March 2, 2025, U.S. President Trump shook the financial world by announcing on Truth Social that the digital assets executive order signed in January directing the presidential working group to investigate a U.S. bitcoin reserve will now move forward with a strategic U.S. crypto reserve that includes XRP, SOL, ADA, BTC, and ETH. The initial post excluded BTC and ETH but in a follow-up post Trump added the inclusion of the two largest cryptocurrencies globally.
Within hours of the announcement, crypto prices soared with Bitcoin jumping over 12% reaching $94.5k, Ethereum climbing 10%, XRP over 30%, Solana and Cardano catapulting 14% and 47% respectively. Public stocks tied to crypto jumped too such as Coinbase and Marathon Digital, as investors rushed to capitalize on the bullish news. However, volatility remains high given that the mechanics of the reserve are still unclear. Additional details are expected on this Friday's Crypto Summit at the White House to take place this Friday, March 7, 2025 as announced by U.S. crypto czar David Sacks on X.
See: Vancouver’s Bitcoin Vision: A New Era for City Finances
President Trump on Truth Social:
“A U.S. crypto reserve will elevate this critical industry after years of corrupt attacks by the Biden administration, which is why my executive order on digital assets directed the presidential working group to move forward on a crypto strategic reserve that includes XRP, SOL, and ADA," Trump posted to his Truth Social account, referring to Ripple’s XRP, solana and cardano and without mentioning bitcoin.
“I will make sure the U.S. is the crypto capital of the world. We are making America great again.”
“Obviously, bitcoin and ethereum, other valuable cryptocurrencies, will be the heart of the reserve. I also love bitcoin and ethereum.”
Market Reactions
1. Bitcoin Maximalists and Advocates Divided
Hunter Horsley BitWise CEO criticized the inclusion of multiple cryptocurrencies in the reserve saying, "Bitcoin alone should be the standard. By adding altcoins, the reserve risks becoming speculative rather than a stable asset". While Ripple/XRPs CEO Brad Garlinghouse, naturally applauded the diversified approach arguing that a mutli-chain future is inevitable.
See: SEC Policy Reversals and Crypto Case Dismissals
Bitcoin advocate, Anthony Pompliano (Pomp) also criticized the reserve’s altcoin holdings as it strays from Bitcoin’s role as “hard money”. He argued that the U.S. government shouldn't be speculating on technology assets which he equates crypto holdings like ETH, SOL, XRP, and ADA to, compared to strategic reserves like gold or oil.
2. Political Stunt or Financial Revolution?
Former U.S. Treasury Secretary Janet Yellen expressed skepticism, stating that the decision lacks clear regulatory backing, warning, "While digital assets have their place, tying them to a national reserve without a defined framework could lead to regulatory headaches and instability in traditional markets."
3. Traditional Finance Sees It as a Threat
Warren Buffett, Berkshire Hathaway CEO called the move an "act of war" against traditional financial systems. "Crypto remains a speculative asset, and tying it to a national reserve could create economic instability in ways we haven't seen before".
4. Brian Armstrong on Institutional Adoption
Coinbase CEO Brian Armstrong reacted enthusiastically, stating on X that this move will force financial institutions to integrate digital assets. "Crypto is no longer a fringe asset class—governments are now recognizing its strategic importance". However, he also warned that regulatory clarity must accompany the initiative.
5. A Race for Global Crypto
El Salvador’s President Nayib Bukele who made Bitcoin legal tender in his country hailed the announcement. However, to secure a $1.4 billion loan from the International Monetary Fund, his administration had to adjust its Bitcoin policies, amending its Bitcoin Law to make acceptance voluntary, no longer accepting tax payments in Bitcoin, and restricting public sector involvement in cryptocurrency activities.
See: 10 Fintech and Crypto IPOs 2025 – Boom or Bubble?
These concessions reflect a balance between maintaining Bitcoin’s role in El Salvador’s economy while addressing the IMF’s financial stability concerns. "This is validation at the highest level. If the U.S. moves forward with this seriously, expect other nations to follow suit," he said. Meanwhile, the Czech National Bank announced it is studying Bitcoin's feasibility as a reserve asset.
Conclusion
The U.S. Crypto Reserve could accelerate digital asset adoption and alter financial regulations but there are a lot of details outstanding and it would require congressional approval. The world is no doubt watching.
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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Balancing AI Automation and Ethics in Fintech
AI | Feb 27, 2025
Image: Freepik/pikisuperstar
AI Tools and Integrations in Fintech: Where It Works and Where It Doesn't
The rise of AI integrations in financial technology has transformed compliance, fraud detection, and customer interactions. However, these tools can also present risks, from privacy concerns to algorithmic bias, leading to regulatory scrutiny and reputational damage. Recent cases provide real-world examples of both successes and failures, offering key lessons for fintech firms aiming to leverage AI responsibly.
Successful AI Implementations
JPMorgan Chase's AI Productivity Suite - JPMorgan Chase developed an AI-driven platform to assist employees with client communications and compliance monitoring. About 200,000 employees have access to the tool, with half actively using it. The bank emphasizes AI governance and privacy safeguards to ensure responsible usage. The bank has saved over 360,000 work hours annually by automating document analysis, saving millions of dollars in cost savings while enabling its workforce to focus on higher value tasks.
The Commonwealth Bank of Australia has implemented AI integrations to improve customer experience by reducing fraud, scam losses, and call centre wait times. AI handles around 50,000 daily customer requests and has reported 50% reduction in customer scam losses with safety and security features, a 30% decrease in customer reported frauds using automated suspicious transaction alerts powered by GenAI, and a 40% reduction in call centre wait times.
Canadian-based Daisy Intelligence has been leveraging AI to enhance fraud detection for insurers. By analyzing historical patterns, its AI models identified potential annual fraud recoveries and avoidance of up to $50 million across two lines of business. Over a six months period, AI demonstrated its effectiveness in financial risk management by significantly reducing fraud, waste and abuse prevention.
See: Fiverr Launches AI-Powered Fiverr Go, Mixed Reactions
A 2024 KPMG survey found that 87% of Canadian financial institutions are piloting or using AI in financial reporting, with 73% in the pilot stage and 14% utilizing AI selectively or broadly. The key benefits include trend prediction, data accuracy, and compliance efficiency.
EQ Bank partnered with Adoreboard aiming to enhance customer trust by analyzing customer emotions which led to an 8% increase in their Trust Metric score between May 2023 to May 2024. AI is using sentiment analysis to improve customer relationships in financial services.
Wealthsimple used NVIDIA’s AI inference solutions to speed up how quickly they can launch new machine learning models, cutting deployment time from months to just 15 minutes. Over the past year, this system has powered 145 million predictions, improving fraud detection, transaction processing, and customer service. It also increased system reliability, reducing downtime from 5% to nearly zero.
Controversial AI Implementations
Optifye.ai, an AI startup promoted its AI-powered worker surveillance tool, but a viral video showed the founders using it to reprimand a factory worker, triggering public backlash calling it a 'sweatshop tool', forcing the company to take down its promotional material. Surveillance implementations at the workplace have ethical risks.
Biased AI systems can cause poor credit decisions. Mortgage approval algorithms have been found to reject Black and Hispanic applicants at higher rates than white applicants with similar financial profiles. A 2021 investigation revealed systemic bias in AI-driven lending, prompting calls for better regulation and fairness in automated decision-making.
A lawsuit against SafeRent exposed how AI tenant screening systems unfairly penalized minority renters. The company faced a $2.3 million settlement after investigations showed their algorithm applied low rental scores to applicants despite strong rental histories.
AI washing on the rise. In 2024, multiple fintech firms faced legal challenges for falsely advertising AI capabilities. Investors sued companies that misrepresented basic automation as sophisticated AI, demonstrating the need for regulations, greater transparency and ethical marketing.
Lessons for Fintech Firms
- Be transparent and clearly explain how AI models work to avoid public backlash and regulatory penalties
- To ensure fairness, regularly review AI systems to prevent biased decisions and use diverse data sources
See: AI Energy Score Ratings A Step Towards Transparency in AI
- Implement strong security measures to balance AI capabilities with user privacy rights
- Follow emerging regulations and stay up to date with changing AI laws to avoid compliance issues in financial services
Conclusion
Transparency, fairness, and regulatory compliance are key to responsible AI adoption. Fintech companies can make the most of AI by learning from both good and bad experiences while keeping customer trust and industry standards in check.
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 Canadian Institutional Investors Voted on Climate 2024
Climate Report | Feb 27, 2025
Image: 2024 Canadian Climate Voting Record (Investors for Paris Compliance)
Institutional Investors in Canada Show Mixed Climate Commitments
The organization Investors for Paris Compliance recently published their 2024 Canadian Climate Voting Record (14 page PDF report), which tracks how Canadian institutional investors voted on climate-related shareholder proposals. While Canadian investor support for climate resolutions increased to nearly 65% in 2024, there's a global pullback on ESG reporting, making Canada's voting record stand out.
Global Pullback on ESG/Climate Reporting
Canadian investors have shown more support for climate resolutions but globally opinions on ESG investing are becoming more divided.
In the U.S., some states and asset managers are pulling back from ESG commitments due to political and regulatory pressure. According to Business Insider, BlackRock has softened its stance on ESG by removing diversity, equity, and inclusion (DEI) language from key documents, in response to growing criticism from certain investors, however they continue to emphasize sustainability.
In Europe, regulators are also adjusting their approach by proposing to ease sustainability reporting rules to reduce burdens on businesses and improve their global competitiveness. Despite this, many European institutional investors remain committed to net-zero goals.
What Types of Votes Are Taking Place?
The 2024 Canadian Climate Voting Record analyzed how institutional investors voted on climate-related shareholder proposals such as:
- Requiring companies to disclose how climate risks impact their business
- Encouraging companies to set clear, transparent, and scientifically based goals for reducing emissions
- Pushing for measurable actions to reduce carbon emissions and transition to cleaner energy
See: Planetary Health Check 2024 and Canadian Climate Tech
While only 4 climate resolutions were voted on at Canadian companies, Canadian investors voted on many resolutions at U.S. and global firms where they hold shares.
Who and How They Voted?
Some Canadian institutional investors are leading the charge, while others remain cautious.
Image: Summary of 2024 Climate Votes (Investors for Paris Compliance)
The top investors in support of climate shareholder proposals:
- All voted 100% in favour of climate resolutions: AGF Investments, NB Investments, Canada Post Pension Plan, IMCO, University Pension Plan, and NEI Investments
- Strong support: BCI (88.2%) and CDPQ (90%)
Many of Canada’s largest financial institutions had weaker records:
- Moderate support: TD Asset Management (70.6%), Ontario Teachers’ Pension Plan (75%), and CIBC (64.7%)
- Laggards: Manulife (41.2%), AIMCO (41.2%), and BMO GAM (47.1%)
- Least supportive of climate related resolutions: Canada Pension Plan (29.4%), RBC GAM (11.8%), and Scotia GAM (0%)
Select Takeaways
- While only 4 climate resolutions were voted on at Canadian companies, Canadian investors voted on many resolutions at global firms
- One issue that the report highlights is the lack of a unified policy on climate issues resulting in split votes among large asset managers like RBC GAM, Manulife, and Scotia GAM, where different portfolio managers voted inconsistently on the same resolutions
See: Canada’s Shift to Enhanced Climate Disclosures
- Canadian investors were more likely to support climate proposals at U.S. companies (65.8%) than at Canadian firms (55.5%), raising concerns about domestic engagement
Conclusion
With the 2025 AGM season approaching, will Canadian investors push for stronger climate commitments or continue their cautious approach?
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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AI Energy Score Ratings A Step Towards Transparency in AI
AI | Feb 26, 2025
Image: AI Energy Score Label (salesforce.com)
Canada's Cohere Helps Drive AI Energy Score for Sustainable AI
Electricity, data centers, and energy infrastructure oh my. That's right. As the demand for artificial intelligence (AI) energy grows with adoption, sustainable and transparent AI coalitions like the AI Energy Score initiative could become a critical standard in measuring the energy efficiency of AI models, empowering individuals, businesses, researchers and policymakers make informed decisions on AI usage.
By 2028, AI data center electricity consumption could consume up to 12% of the total electricity in the United States, a hockey stick increase from 4.4% in 2023. While the U.S. is planning to add 46 gigawatts of new natural gas capacity by 2030 to help meet this demand (equivalent to the entire electricity requirements of Norway), industry and governments globally are recognizing the urgency for energy capacity and making AI more energy efficient.
Introducing AI Energy Score
A coalition of industry leaders including Salesforce, Hugging Face, Canada's Cohere, and Carnegie Mellon University launched the AI Energy Score initiative, to provide a standardized way to measure and compare the energy efficiency of AI models. AI Energy Score evaluates AI models based on their power consumption when making predictions or generating responses called 'inference' (not when training LLMs) and assigning each a star rating of 1-to-5.
A public leaderboard ranks over 166 AI models across categories such as text generation, image generation, summarization, automatic speech recognition, and object detection, so users can compare energy efficiency across different tasks.
Developers can also submit their models for evaluation through a benchmarking portal.
And as you may expect, similar to ENERGY STAR labels for household appliances, AI models that meet high efficiency standards receive recognizable energy-use labels.
How the Rating System Works
The AI Energy Score evaluates models across ten AI tasks and energy use is measured in watt-hours per 1,000 queries to establish a standardized assessment. Each model is then assigned a star rating based on its efficiency. The top 20% most efficient models receive a five-star rating, while the least efficient 20% receives one star. The leaderboard is updated every six months to reflect new advancements and ensure the ranking system remains relevant.
Cohere’s Involvement and Canada's Action
Toronto based startup Cohere, an AI company specializing in large language models for enterprise is the only known Canadian firm participating in the AI Energy Score initiative at this time, signalling Canada’s growing awareness of the need for AI energy efficiency. Note Canada has built a strong reputation in AI research through institutions like Mila in Montreal, the Vector Institute in Toronto, and Amii in Edmonton.
See: Canada’s AI Competition Report Faces Big Tech Challenges
The Canadian government has started recognizing the challenges posed by AI’s energy consumption. The Standards Council of Canada (SCC) recently emphasized the need to balance AI innovation with sustainability and data integrity. In a 2024 policy brief, SCC warned that AI’s growing energy demand could hinder Canada’s climate commitments if left unchecked. In response, the government has proposed a $15 billion incentive package to attract energy-efficient AI data centers to Canada. It has also aligned with international AI governance efforts, such as the Global Partnership on AI (GPAI), seeking to establish sustainability standards for AI development.
Canada is also moving on legislation. The Artificial Intelligence and Data Act (AIDA, part of Bill C-27), focused on regulating AI transparency and accountability. However, Canada has not yet formally joined initiatives like the AI Energy Score or the Coalition for Sustainable AI.
Implications of AI Energy Rating Standards
If energy ratings for AI models become widely adopted then all stakeholders will start prioritizing efficiency. In practice this might mean companies would begin selecting AI models based on their energy usage (similar to how businesses evaluate their carbon footprint today when deciding certain policies). During the transitional period of adoption to new ratings, companies building AI products while optimizing for energy efficiency could use that as a competitive advantage.
Investors may also begin favouring AI firms that disclose energy consumption data as part of their support for transparency and sustainable AI, unlocking new funding opportunities.
See: Will Nuclear Fuel the Data-Driven Future?
Governments may introduce regulations requiring AI models to meet minimum efficiency benchmarks to ensure AI innovation and development efforts align with broader climate goals.
Will Canada Take a Leadership Role?
Canada must decide whether to help lead in AI energy transparency or risk falling behind. While Cohere’s participation in the AI Energy Score is a positive step, there is currently no national strategy on AI energy ratings. The AI Energy Score represents one of the first major efforts to standardize energy transparency in AI and its adoption would change how businesses, governments, and investors evaluate AI models. It's often said that Canada has the opportunity to lead in sustainable and responsible AI but it will require deeper engagement from policymakers, industry leaders, and research institutions.
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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SEC Policy Reversals and Crypto Case Dismissals
SEC | Feb 25, 2025
Image: Freepik/jcomp
The SEC’s New Direction Under the Trump Administration
Since President Trump took office for the second term, the U.S. Securities and Exchange Commission (SEC) is undergoing major transformation. Not a week passes without key changes being announced from cost cutting to reversing key regulations away from policies set by the previous administration.
See: Trump Shuts CFPB Weakening Consumer Financial Protections
This changes impact corporate disclosures, shareholder rights, market regulations, and the SEC’s new approach to cryptocurrency to name a few. Here's a quick run-down to stay plugged in with what's going on.
Budget Cuts and Structural Changes
The SEC overseas $100 trillion U.S. capital markets and is getting their budgets slashed according to the Reuters exclusive, including the just announced removal of regional directors from ten offices. While the offices themselves remain open, the restructuring aims to centralize decision making to reduce overhead. For example, the Trump administration has ordered independent agencies like the SEC to submit draft regulations, strategic plans, and budget requests to the White House for review, increasing executive oversight over regulatory actions.
Leadership Changes
While NCFA already reported on the changes below, it's worth reiterating the following key leadership changes at the SEC:
- Paul Atkins nominated as SEC Chair - he was a former SEC commissioner and advocate for deregulation and currently awaits confirmation by the Senate.
- Mark Uyeda as Acting Chairman. He currently leads the SEC while Atkin's nomination is awaiting approval.
- Hester Peirce leads the Crypto task force - affectionately known as 'Crypto Mom' and for her pro-crypto views, is spearheading SEC efforts to create a clear regulatory framework for digital assets, which ill replace prior enforcement driven approaches.
Key Regulatory Rollbacks
1. Climate Disclosure Rule Rescinded
The SEC is no longer supporting the climate disclosure rule that required companies to disclose their greenhouse gas emissions. Acting Chair Uyeda questioned whether the SEC had the legal power to enforce this rule, signaling a move away from climate-related financial reporting. (Source)
2. Shareholder Proposal Restrictions Reinstated
Companies now have more power to reject shareholder requests, especially those about environmental, social, and governance (ESG) topics. This change rolls back previous rules that gave shareholders more say in company decisions.
3. Treasury Market Dealer Rule Withdrawn
A rule that required certain traders in the U.S. Treasury market to register as broker-dealers has been cancelled. This happened after legal challenges claimed the SEC had gone beyond its authority.
4. Crypto Custody Accounting Rule Reversed
The SEC has rescinded its prior guidance requiring crypto custodians to record digital asset liabilities on their balance sheets, reducing financial burdens for institutions handling cryptocurrency.
5. Increased Oversight of SEC Investigations
SEC staff must now obtain leadership approval before launching formal investigations, centralizing enforcement decisions and potentially slowing new probes.
New Approach to Crypto Regulation
The SEC has cancelled or dropped several high profile cases established during the prior administration, reflecting a dramatic shift in crypto regulations moving forward:
- The SEC has dropped its investigation into Robinhood’s crypto operations with no enforcement action. (see wells notice)
- Paul Grewal, Coinbase's chief legal officer said federal regulators/SEC will drop its lawsuit against Coinbase, which had accused the exchange of operating without proper registration.
- The SEC has also closed its investigation into OpenSea’s NFT marketplace.
- The SEC has concluded its investigation into Uniswap Labs with no enforcement action, providing a positive signal for DeFi platforms.
- The SEC and Binance have requested a 60-day pause in their legal battle, signalling potential negotiations for a settlement or case dismissal.
- Ripple CEO Brad Garlinghouse believes the SEC will drop its case against Ripple Labs. He pointed to the SEC’s recent shift in approach and the dismissal of other cases as positive signs. Further, the SEC has also recently removed any mention of the Ripple lawsuit from its website, suggesting the case could soon be resolved
- The SEC has agreed in principle to drop all pending securities charges against ConsenSys
Outlook
With fewer enforcement actions, reduced oversight, and a more favourable stance on crypto, the U.S. financial industry is entering a new phase. While these moves could encourage innovation and investment, they also raise concerns about market integrity and investor protection. Time will tell if these changes bring stability and growth or create new risks for the industry.
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 have Canadian online gambling laws evolved over the last few years?
Feb 21, 2025
Image: Freepik
Regulations have long complicated the relationship between gamblers and operators in Canada's gaming industry. While some provinces have placed restrictions on iGaming, many foreign operators have entered the Canadian market and introduced some very innovative solutions.
In recent years, the regulatory landscape of the iGaming industry has evolved significantly, with operators now facing an ever-changing set of strict regulations. This constant stream of new rules demands that operators adapt quickly to maintain compliance with the law and effectively engage with players.
In this post, we aim to explain the evolving nature of gambling laws in Canada, highlighting key milestones and the impact on both operators and gamers in the region. Read on to learn about the industry’s future.
The legal landscape before recent changes
The gambling laws in Canada have always been strict, which is understandable as most of the industry’s activities were regulated by the Criminal Code of Canada. The 207th section of the code states that permission to regulate gambling acts is exclusively provided to the provinces of the government. In the past, this meant that privately owned operators in Canada were barred from offering gaming services to players.
This restriction allowed offshore casino providers to position themselves as great options for Canadian bettors. Users were able to access countless options in an unregulated grey market.
Government lotteries like the Ontario Lottery and Gaming Corporation (OLG) and PlayNow in British Columbia and Manitoba) began to offer digital gambling options but were unable to keep up with the huge influx of new visitors. Sites like Time2play, a leading casino comparison site that plays a crucial role in helping bettors in Canada and beyond, helps players access the top legal providers of online casinos by providing expert reviews and ratings. These new gamers are directed to platforms that best suit their gaming needs.
Key milestones in the evolution of online gambling laws
Let's take a look at some of the major milestones which online gambling laws have evolved through over the last few years in Canada:
Bill C-218
One of the critical turning points in the history of Canada's online gambling law happened with Bill C-218, which is also known as the Safe and Regulated Sports Betting Act. This act brought about the legalization of single-event gambling.
Prior to this, Canadian gamers could only wager using the parlay betting system, where winning is dependent on multiple wagers for real money at any authorized Canadian casino provider. This restriction pushed players to depend on offshore platforms for their daily activities, as it was harder to guarantee a win with the old system.
By enacting this bill, the provinces gained notable authority to regulate single-event gambling — leading to a major shift that ushered bettors into a much more regulated environment.
Ontario’s iGaming market launch (April 2022)
Another notable milestone in the evolution of gambling laws in Canada includes the launch of the iGaming market in 2022. Ontario started out as the first province in the country to be completely regulated and offer gambling licenses to operators within their borders.
A stronger framework for legal wagering was further provided by iGaming Ontario (iGO) and the Alcohol and Gaming Commission of Ontario (AGCO), ensuring that private operations are covered by law in the province.
This launch ensured that key areas of the iGaming market were established.
Major aspects include:
Licensing requirements
Casinos in Ontario were required to obtain a license by registering with AGCO before legal operation could be recognized.
Responsible gaming measures
Strict policies were put in place to ensure that activities like advertising, transactions and self-exclusion followed the requirements of the law.
Competitive marketplace
The launch of the iGaming market opened the door for healthy competition from other operators. Companies like DraftKings, FanDuel and BetMGM joined the market as options for players.
These innovations made it possible for gambling to become increasingly popular among the Canadian audience.
Expansion of provincial online gambling platforms
One of the notable indications that signaled the advent of more favorable gambling laws in Canada is the progression in popularity of online gambling throughout the province of Ontario.
Following the success of platforms regulated by government laws, more operators began to hop on the wagon.
Canadian platforms began to increase their game offerings to improve their appeal in comparison to offshore platforms. The Alberta Gaming, Liquor and Cannabis Commission (AGLC) is also looking into expanding its operations across the region for more reach.
As more operators are being appended to the list of offerings for Canadian bettors, Time2play remains one of the most reliable sources for valuable insight concerning the best provincial and international gambling platforms through their expert recommendations and historical analysis.
Recent crackdowns on offshore operators
The most recent milestone in the growth of Canadian gambling laws is evident in the crackdowns on offshore platforms. With a priority on regulated and legal gambling, authorities have begun to audit foreign operators that do not hold any licenses.
The Alcohol and Gaming Commission of Ontario (AGCO) has developed regulatory measures that ensure that platforms without licenses are restricted from operating in Canada. One good example can be seen in the $100,000 CAD fine issued to DraftKings for the violation of Ontario’s advertising and inducement regulations. Although this action was perceived as a ploy to push foreign platforms out of competition, the goal is to foster a safe gambling environment for Canadians and ensure that every platform abides by governmental policies.
Benefits for Canadian gamblers
Over the past few years, the expansion of online gambling laws has left an indelible mark on the industry, and online gamblers are at the forefront of the positive impact this has had on the industry.
Here are just a few of the many benefits:
More regulated options and safer gambling
The growth of regulated gambling websites has made it easy to access games from different software developers. These platforms are also required to adhere to privacy and protective measures like:
- Verification of player identity to curtail underage gambling
- Integration of safe payment gateways to enhance security and efficiency
- Adoption of features like self-exclusion programs to encourage responsible gambling
Expanded betting opportunities
There has been a record expansion in the opportunities to play a variety of games now more than ever in the history of online gambling.
With the introduction of competitive operations, casino players can now select from a pool of options available on the market. This has resulted in various software providers offering unique gameplay mechanics for the Canadian audience.
Tax-free winnings
Unlike other nations, most casino players in Canada are not mandated to pay tax from their winnings except for professional bettors or individuals who are engaged in the activity as a business.
The impact on the online gambling industry
Having explored some of the benefits for gamblers, let's look at the impact that the evolution of online gambling laws in Canada has made on the industry at large.
Below are a few industry impacts:
Increased market competition
The growth of the online casino market in Canada today can be attributed to the development of gambling laws. Not only has this encouraged healthy competition, but it has also helped to keep imposters and dangerous operators out of the industry.
Economic growth and job creation
One of the benefits of the enactment of online casino gambling laws in Canada is the tax revenue. This has improved the economy of the nation and created job opportunities for people in the areas of customer support, compliance and technological development.
Stricter advertising and marketing rules
In a bid to avoid problem gambling of any sort, a policy has been enacted to combat excessive promotion around bonuses and exclusive gambling offers. Operators in Canada are expected to comply with this rule to avoid promoting to minors and people that are subject to vulnerability.
Future predictions for Canadian online gambling laws
Over the next few years, we expect:
Stricter enforcement against offshore gambling sites
It is possible that stricter enforcement of gambling laws in the industry will be enacted. This may include stronger surveillance of player IP addresses and the restriction of suspicious financial activities.
Increased federal involvement
It is predicted that there will be heightened federal government involvement in online casino gambling activities. This could help to unify casino standards and ensure there is a consistent policy direction.
Enhanced responsible gambling initiatives
There will likely be more funding to support self-exclusion programs and ensure that responsible gaming is established across all provinces.
Final remarks
Over the past few years, Canada's online gambling laws have undergone several changes. These have contributed to providing a safe gaming environment for players and have offered immense benefits for iGaming-focused businesses.
See: Meta’s AI-Powered Metaverse to Kickstart New Era in Gaming?
While there may be a few challenges, especially regarding the regulation of offshore operators, the Canadian iGaming industry is sure to enjoy a promising future. As we look forward to more improvements from provinces across the country, Canadian gamblers can expect to enjoy a much safer gaming environment and even more diverse gaming options.
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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The Top Trends from Forbes’ 2025 Fintech 50 List
Fintech Ranking | Feb 20, 2025
Image: 2025 Forbes Fintech 50 (Illustration by Óscar Raña for Forbes)
What We Can Learn from the Forbes Fintech 50 in 2025
Every year, Forbes publishes their annual ranking of the top Fintech companies. Checkout the Forbes Fintech 50 in 2025, showing fintech companies that continue to grow despite pressure on company valuations and a slowdown in investment in the sector. According to the judges who select and rank the top 50 at Forbes, this year there's been a rise of business-t0-business fintechs, as well as the increasing importance of fraud prevention and financial security companies.
| Category | Total Funding ($M) | # Companies |
| Payments | 4482 | 11 |
| Personal Finance | 3812 | 8 |
| Business to Business Banking | 3794 | 11 |
| Wall Street and Enterprise | 1892 | 9 |
| Insurance | 1742 | 4 |
| Blockchain and Cryptocurrencies | 1670 | 3 |
| Real Estate | 508 | 2 |
| Investing | 265 | 2 |
1. B2B Fintechs Strong Showing
More than half of the companies on the list provide fintech services to other businesses rather than consumers. Categories like Payments and B2B Banking are seeing strong growth as businesses turn to fintechs to automate and improve their operations, reduce costs and streamline regulatory challenges. Fintech goes well beyond innovative consumer digital banking, it's morphing into improving financial systems at scale. Wall Street & Enterprise fintechs are also playing an outsized role in modernizing financial infrastructure at the institutional level.
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The chart below illustrates the number of fintech companies in each category, emphasizing the dominance of business-focused fintechs:
Image: Total # of Fintech Companies by Category (Forbes Fintech 50, 2025)
The chart below shows the total funding received by fintech category, showing which categories are bucking the trend despite the downturn.
Total Funding by Fintech Category Forbes Fintech 50, 2025
Payments fintechs still lead the pack with over $4.4 billion in total funding. This aligns with their critical role in powering e-commerce and digital transactions worldwide.
2. Focus on Profitability Amidst a Funding Slump
In the early 2020s, fintech companies focused on rapid growth but times have changed and they are now after profitability and sustained growth. This year, 13 companies on the list reported official profits (up from just eight last year). Investors and businesses alike are prioritizing financial health over unchecked expansion.
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Even though global fintech funding fell from $144 billion in 2021 to $34 billion in 2024, most companies on this year’s Forbes Fintech 50 have shown resilience. Major players like Stripe and Ramp have adapted by pivoting, reducing costs while focusing on efficiency.
3. Fraud Prevention and Security Are More Important Than Ever
As digital transactions increase so do fraud risks. Security based fintechs are gaining traction as businesses need stronger protections against cyber threats and fraud. DataVisor, a company that uses advanced machine learning to detect fraudulent transactions experienced a 67% increase in revenue in 2024, reaching $50 million.
4. Lending Fintechs Comeback
Companies like Arc, Aven, and Imprint have made their way onto this year’s list, showing that the lending market is regaining investor confidence. Nova Credit, for example, previously fell off the list but re-emerged this year with a renewed focus on cash flow underwriting and a fresh approach to risk assessment.
5. One Canadian Contender, Relay
While much can be argued about the methodology of actually being selected for the Forbes Fintech 50 list. To be honest there are several significant Canadian fintechs that should be on the list but aren't for whatever reason, such as Wealthsimple. But Relay made it so something to cheer about.
See: Key Findings from 2025 Advanced Payments and Fintech Survey
They are a Toronto-based digital banking platform for small businesses and provide financial management tools that integrate with accounting software, making it easier for businesses to manage their money. In 2024, they raised $32.2 million in a Series B funding round, strengthening their market position and offerings.
Top Fintech Companies by Category
Here’s a closer look at a couple of standout fintech firms within each category:
Payments
- Stripe – A global online payments leader providing seamless transaction infrastructure for businesses
- DailyPay – Helps employees access earned wages before payday, improving financial flexibility for millions
Business-to-Business (B2B) Banking
- Relay – Canada’s only fintech on the list offering digital banking for small businesses
- Parafin – Uses marketplace data to underwrite loans, achieved 100% revenue growth in 2024
Wall Street & Enterprise
- DataVisor – Specializes in AI powered fraud detection, growing revenues by 67% in the past year
- Alloy – Provides identity verification solutions for financial institutions, automating compliance and security processes
Personal Finance
- True Link – Offers financial services for vulnerable populations including the elderly and those with disabilities
- Chime – A digital bank providing fee-free accounts and early direct deposits
Insurance
- Ethos – Makes life insurance more accessible with a fast, tech-driven application process
- At-Bay – A cyber insurance company that proactively monitors digital risks for clients
Blockchain & Cryptocurrencies
- Figure – Uses blockchain to offer home equity lines of credit and mortgage refinancing
- Fireblocks – Provides secure infrastructure for handling digital assets
Real Estate
- Aven – Introduces innovative financing solutions to make real estate investments more accessible
- Valon – A mortgage service provider making home loan management simpler and more transparent
Why This Matters
The 2025 Forbes Fintech 50 shows the race for scale is now about profitability with payments, security, infrastructure, and B2B services leading the way. For Canada, Relay’s presence on the list is promising but begs the question, why aren’t more Canadian fintechs on the list?
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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