Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Web3, Decentralization, DAOs
Benefits of Telegram TON Games for Beginners
Sep 24, 2025
Image courtesy of Flipper AI DEX
The Open Network (TON) Telegram games leverage blockchain technology to offer decentralized, secure, and transparent gaming for all users. Beginners can enjoy simple and readily accessible gameplay by playing TON games on Telegram. These games provide you with a simple way to explore the growing world of crypto and blockchain technology powered by Telegram’s vast user base. There are several Telegram gaming products that incorporate decentralization, smart contracts, and blockchain integration. Decentralization enables game data and logic to be shared across a network of computers securely and transparently. From ensuring fairness to creating monetary reward opportunities, TON offers several benefits to gamers.
4 Reasons to Play Telegram TON Games as a Beginner
Telegram’s platform not only offers opportunities for dApps within the ecosystem, but it also introduces user-friendly in-game economies. This combination lets developers build more advanced and interactive crypto gaming applications that players can trust. As more users continue to embrace TON, you can expect to see new and innovative gaming solutions that blend entertainment with real-life monetary benefits. Here are some great reasons to play Telegram TON games as a beginner.
1. Easy and Engaging Gameplay
Telegram TON games come with minimalistic designs. They are developed with simple and engaging gameplay in mind. This makes them vital entertainment tools for beginners looking to transform their online crypto gaming experiences. For those who prefer short gaming sessions, TON could be the perfect way to escape from everyday distractions and experience fun to the max. Newcomers can utilize reliable decentralized exchanges, like Flipper DEX, to earn free crypto tokens, including NOTCOIN. You can find tutorials and guidance to level up your skills and achieve your objectives in no time.
2. Real-World Earning Rewards
Potential for real rewards is another huge benefit of playing Telegram TON games. Popular play-to-earn Telegram models like TON allow users to accumulate virtual financial assets by completing basic tasks like tapping and swiping. You can convert your in-game currencies into actual crypto tokens like NOT and Hamster Kombat. Another great reason to play Telegram games is their low-cost entry. Beginners can start earning money without making any initial investment. While some Telegram crypto games offer upgrades or features that users can choose to purchase, it’s worth noting that these are not always required to start.
3. Social Engagement
Thanks to the built-in community and social features, Telegram TON games lets players engage with their friends or join squads to conduct missions and compete on leaderboards. If you want to add fun and a social layer to your crypto gaming experience, you should consider taking advantage of TON Telegram games. Social media referral awards help create bonuses for beginners who invite their friends to play. These are primarily designed to motivate more players to explore the expanding world of Telegram games and boost their earning potential.
4. Fast and Cheap Transactions
TON stands out in the blockchain ecosystem due to its relatively high speed and affordable transaction fees. Whether you’re a beginner or pro, you can interact with the crypto space directly and benefit from smooth experiences in a low-risk environment. There is no doubt that TON-based wallet integration is one of the easiest entry points into web3.
See: Is Web3 Ready for Social Commerce Adoption?
Telegram TON crypto games have gained widespread popularity lately thanks to their ease of access and community-driven experiences. The remarkable success of The Open Network onboarding millions of web3 users has played a key role in enabling beginners to build their digital assets portfolios.
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 aa 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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Kevin Durant’s Bitcoin Recovery and User Protection
Crypto | Sep 22, 2025
Image: Freepik/krakenimages.com
NBA Star’s Decade Long Highlights Risks of Account Lockouts and Customer Service
On September 20, 2025, Coinbase CEO Brian Armstrong announced that NBA star Kevin Durant had regained access to his Coinbase account nearly ten years after first buying Bitcoin, and then initially purchasing it for around $650 per Bitcoin in 2015, implying a whopping gain of more than 17,000% ten years later.
Armstrong confirmed the recovery on X, which followed Durant’s story earlier in the week at the CNBC x Boardroom Game Plan summit in Santa Monica. Durant described how he first bought Bitcoin in 2014–2015
See: Coinbase Pushes for Tokenized Equities Approval
We got this fixed. Account recovery complete! https://t.co/TWYFpQkXsb
— Brian Armstrong (@brian_armstrong) September 19, 2025
Kevin Durant’s Decade Long Bitcoin Recovery
Durant’s first exposure to Bitcoin came around 2014–2015, when he says he “started watching YouTube videos” about the emerging digital asset. Intrigued, he encouraged his agent, Rich Kleiman, to take a closer look. Their enthusiasm was quickly cooled when, according to Kleiman, their business manager “said, ‘No, don’t do that.’ So we didn’t.”
That might have been the end of the story if not for a party hosted by venture capitalist Ben Horowitz. Kleiman recounted how they heard Bitcoin mentioned repeatedly that night, and “we woke up the next day and said, ‘We have to do this.’” From there, they invested in Bitcoin and later became early backers of Coinbase through their firm Thirty Five Ventures.
See: Coinbase Breach Days Before S&P 500 Listing Milestone
According to Coindesk, Durant’s entry point was near $650 per Bitcoin in 2015, a level that makes his eventual recovery especially striking. With Bitcoin trading above $115,000 in September 2025, that original purchase reflects a gain of more than 17,000%, a staggering return on investment that Durant could only access once his Coinbase account was unlocked nearly a decade later.
Forced Hodling and Consumer Protection
Durant’s lost account access resulted in type of “forced hodling” through multiple market cycles. Chainalysis-based research on permanently lost Bitcoin estimates millions of crypto assets are out of reach because people have lost their passwords or recovery keys. That reduces the amount available to trade and makes the asset more scarce. Durant’s case shows that being locked out by accident can sometimes lead to big gains, but it also reveals the real danger for everyday users who may never regain access to their accounts.
Coinbase outlines strict processes for regaining access if emails or two factor devices are lost. Users may need to reset forgotten passwords, recover two factor authentication, or provide identity documents through account access troubleshooting. Many users report challenges completing these steps. After Durant’s recovery, social media threads filled with complaints from customers who have been locked out for years.
In response, Armstrong reposted a detailed thread from his support team on X, promising product improvements and faster support. Coinbase also maintains VIP service tiers for high volume traders. Reuters published an article in August 2025 about widespread user frustration with locked accounts and the Verge covered investigations into delays in customer support. Clearly more work needs to be done by Coinbase to support all customers, and not just celebrities that might be prioritized for obvious reasons.
Practical Takeaways for Crypto Users
Durant's experience of lost keys and account access can happen to even the most sophisticated investors, causing an incredible amount of frustration. Prevention is the best protection. Coinbase advises enabling multiple two factor authentication methods, including hardware keys, and updating recovery emails and phone numbers regularly.
See: U.S. Prepares to Count Crypto in Mortgage Rules
Also, users should evaluate the benefits and risks of storing crypto on exchanges versus self custody options using a secure wallet. Digital asset investors should only work with crypto exchanges that offer reliable recovery workflows and strong customer support.
Conclusion
Thanks to Durant's celebrity status, consumer protection from lost keys and account access is back in the news. For Durant, it's another story and a drop in the bucket but for regulators and industry leaders it's a recurring lessons that equitable account recovery and strong consumer support is essential to wider adoption. While new trading features are also being developed and released, crypto exchanges and leaders need to prioritize safeguarding access for all users.
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 aa 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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Nasdaq Seeks SEC Approval for Tokenized Stock Trading
Tokenization | Sep 9, 2025
AI generated
Nasdaq Files With SEC to Tokenize All Stocks and ETFs
On September 8, 2025, Nasdaq announced in a Newsroom Q&A with Chuck Mack that it filed with the U.S. Securities and Exchange Commission (SEC) to allow every listed stock and exchange-traded fund on its markets to settle in tokenized form. The news is significant and was also confirmed by Reuters and if approved would be the first time a U.S. national exchange was keen to integrate blockchain settlement into the regulated equity system. If approved, the change would affect securities representing $61.6 trillion in U.S. market capitalization as of Q2 2025.
Nasdaq Tokenization Proposal Explained
Under the 19b-4 filing to the SEC, Nasdaq proposes that each stock and ETF maintain the same CUSIP (unique 9 digit alphanumeric identifier assigned to financial instruments in the States and Canada, such as stocks, bonds, ETFs) whether traded in traditional or tokenized form. At order entry, brokers could flag trades for tokenized settlement. Execution would take place on the same order book, under the same rules, with identical rights and benefits. After execution, the Depository Trust Company (DTC) would convert the security into a blockchain token and record ownership.
See: US Puts Economic GDP Data On Nine Blockchains
Chuck Mack, Nasdaq’s Senior Vice President of North American Markets, explained the approach and stressed that from an investor’s perspective, nothing changes in how trades are placed or executed. Only the method of settlement shifts to a tokenized form:
“Our goal is to integrate digital assets into Nasdaq’s current infrastructure and systems, which will advance financial innovation while maintaining stability, fairness, and investor protection. If investors and market participants express demand for a particular approach, and we can implement it in a way that preserves market integrity, then we want to give them that choice.”
Nasdaq has indicated the first token-settled trades could occur by Q3 2026, provided that DTC’s new systems are ready. This would embed blockchain settlement directly into the most liquid equity market in the world, where average daily trading volume reached 18.4 billion shares in Q2 2025.
The filing follows the U.S. move to T+1 settlement in May 2024. Tokenization builds on that progress by layering blockchain into existing systems rather than replacing them. SEC Commissioner Hester Peirce has made clear that tokenized securities must still comply with securities laws. One way to look at tokenization is that it's not a regulatory shortcut but rather a modernization of existing infrastucture.
Impact on Canada’s Fintech and Capital Markets
For the U.S., the importance lies in scale and precedent. With more than 5,400 listed companies, Nasdaq’s proposal would normalize blockchain-based settlement within the core market system. Tokenization could deliver operational savings, stronger audit trails, and new forms of fractional participation, all without fragmenting liquidity.
See: Europe’s Fintech Reset at Point Zero Forum
For Canada, Nasdaq's interest echoes the Ontario Securities Commission’s exploration of tokenized long term funds, aimed at improving investor access to complex assets. If Nasdaq’s model is approved, Canadian fintechs could explore cross-border tokenized products, while regulators will need to address custody, wallet security, and investor protections to keep pace with these developments.
Outlook
Next steps is for the SEC to open the filing for public comment. If approved, tokenized settlement could begin by late 2026. For NCFAs community, this is a watershed moment as tokenization moves from pilot projects and into mainstream market regulation. The implications are significant and real with efficiency gains, lower costs, competitive pressure on other exchanges, and new opportunities for cross-border fintech innovation.
For Canada's fintech and digital asset ecosystem, aligning with these changes will be critical to remain competitive in the next phase of global capital markets.
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 aa 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 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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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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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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