The Office of the Superintendent of Financial Institutions (OSFI), the Financial Consumer Agency of Canada (FCAC) and the Canada Deposit Insurance Corporation (CDIC) issued a 
The Grayscale Bitcoin Trust (GBTC) is an over-the-counter (OTC) traded fund meant to track the price of bitcoin. Grayscale Investments is owned by Barry Silbert’s crypto mammoth Digital Currency Group (DCG), which also owns beleaguered crypto trading and lending firm Genesis.
LONDON (Reuters) - The crash of FTX exchange has injected greater urgency into regulating the crypto sector and targeting such 'conglomerate' platforms will be the focus for 2023, the new chair of global securities watchdog IOSCO said in an interview.
Sir Timothy Berners-Lee, the person who made it possible to read this online article, first came up with the concept of the Web back in 1989. The creator of the World Wide Web is now on a mission to save it.
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
Is Binance’s Proof-of-Reserves Pointless Without Liabilities?
Cryptoslate | Oluwapelumi Adejumo | Nov 28, 2022
Image: Unsplash/Bastian Riccardi
Former Kraken CEO Jesse Powell criticized Binance’s Proof of Reserve, calling it an “ignorant or intentional misrepresentation.”
- Powell argued that the Merkle Tree was pointless if there were no external auditors to ensure that the exchange did not include accounts with negative balances. He added that “the statement of assets is pointless without liabilities.”
- Popular crypto investor Vinny Lingham tweeted on Nov. 27 that exchanges should publish their Proof-of-Liabilities alongside their Proof-of-Reserves. According to him, some exchanges could have liabilities beyond their deposits.
See: Grayscale Won’t Share Proof of Reserves | Bitvo Escapes FTX | (Some) DeFi Platforms Benefit from CEX Exodus
- James Lavish, the author of The Informationist newsletter, wrote that Powell’s view required third-party auditors, which means trusting human sources of information. According to Lavish, previous trusts in such parties have not turned out well for the community.
- CZ Responds: Binance has plans to involve third-party auditors later on, and the exchange proof of reserves does not include negative balances.
The whole point of this is to understand whether an exchange has more crypto in its custody than it owes to clients. Putting a hash on a row ID is worthless without everything else.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Canadian Federal Regulators Issue Joint Statement on Crypto Assets | OSFI Publishes Digital Asset Roadmap
McCarthy Tetrault | Ana Badour | Nov 17, 2022
The Office of the Superintendent of Financial Institutions (OSFI), the Financial Consumer Agency of Canada (FCAC) and the Canada Deposit Insurance Corporation (CDIC) issued a joint statement to all regulated entities (regulated entities) engaging in crypto asset activities or crypto-related service:
- In Scope:
- Including but not limited to, “acting as crypto-asset custodians; maintaining stablecoin reserves; issuing crypto and other digital assets; sub-custodial arrangements for crypto as well as dealing in any derivatives/securities financing transactions (SFTs), or
- other assets referencing crypto; acting as market makers or exchange or redemption agents in regards to crypto-assets;
- participating in blockchain and distributed ledger-based settlement or payment systems, including performing node functions; as well as
- related activities such as finder activities and lending in regards to crypto-assets.
- The Canadian federal financial regulators note that cryptocurrencies, stablecoin arrangements and decentralized finance applications “require prudent and thoughtful oversight and regulatory approaches, since innovations occur both within and outside of the mainstream financial system, sometimes both simultaneously”, and endorse the Financial Stability Board’s principle of “same activity, same risk, same regulation”.
See: OSFI Consultation on Prudential Treatment of Cryptoasset Exposures
- OSFI published a Roadmap for an Evolving Digital Asset Landscape and invited feedback from both regulated and non-regulated entities.
- The roadmap includes the launch of a regulatory sandbox in the first half of 2023 to enable experimentation of new technologies in a safe environment. Organizations are invited to express interest in participating in the sandbox by January 19, 2023, including indicating which type of products or services the organization is interested in.
- OSFI also indicates that it expects in 2023 to finalize its risk management expectations for digital currencies including stablecoins, and that it intends, starting in 2024, to expand the regulatory sandbox (to potentially include new participants and/or products) and to explore further the topics of crypto custody, lending, issuance, staking, derivatives and decentralized finance, as well as payment innovation and advanced artificial intelligence/ machine learning.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Grayscale Bitcoin Trust is Fundraising to Shore up the Books of Genesis
Protos | Nov 23, 2022
The Grayscale Bitcoin Trust (GBTC) is an over-the-counter (OTC) traded fund meant to track the price of bitcoin. Grayscale Investments is owned by Barry Silbert’s crypto mammoth Digital Currency Group (DCG), which also owns beleaguered crypto trading and lending firm Genesis.
- For a long time, GBTC traded at a significant premium to its NAV, with shares trading for as much as double the value of the corresponding bitcoin. While this premium persisted, institutional investors were incentivized to lock up bitcoins and receive GBTC shares, which they hoped to sell once the six month period elapsed. However, this trade become popular among a variety of firms, including BlockFi and Three Arrows Capital (3AC). As shares began to unlock, GBTC eventually started trading at a discount to NAV. This became particularly challenging for BlockFi, which had lent 3AC money against GBTC collateral.
- Eventually, 3AC was liquidated by BlockFi, which meant increased selling of GBTC into the market, further raising the discount. Currently, GBTC trades at around a 45% discount to NAV.
- Grayscale will not share proof of reserves
See: SEC Rejects Bid to Turn the Largest Bitcoin Fund Into an ETF -> Grayscale Sues SEC
- Fundraising: DCG, the parent company for both beleaguered Genesis Trading and Grayscale, is reportedly fundraising to help shore up the books of Genesis.
- If Grayscale Investments withdraws as sponsor for GBTC, then the remaining shareholders have 90 days to find a new sponsor or the trust will terminate. If the trust is forced to liquidate, the bitcoin will be sold “as promptly as possible while obtaining the best fair value possible.” Cash proceeds will be distributed pro-rata to shareholders.
- GBTC currently has 644,000 bitcoin. Those who purchased at a significant discount could potentially make money, but that depends on how this sale of bitcoins would affect the market price for bitcoin.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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3 Reasons Why Ethereum Is a Good Investment
Nov 25, 2022
Image: Pexels/RODNAE Productions
There are countless altcoins in existence, but only a minute percentage have the potential to outmatch Ethereum, which has come second only to Bitcoin for some time now. Even with the market crash following the NFT surge and ‘The Merge’ taking place, Ethereum still holds a strong position. If you haven’t already got Ethereum in your investment portfolio, continue reading for three reasons why you should.
Ethereum Has a Functional Ecosystem
Ethereum broke into the blockchain landscape back in 2015 and bought with it the incredible power of smart contracts, which can be built over the blockchain. Smart contracts are automated programs designed to execute once any terms are met, meaning the middleman becomes redundant. For example, if someone gives collateral to secure a loan it can be returned automatically once the repayment terms have been made.
The smart contract infrastructure sits at a completely polar opposite to Bitcoin, which only exists as a digital currency. The smart contract infrastructure of Ethereum is the main reason why developers flocked to the platform. Currently, more than 4000 developers are working on Ethereum each month. According to findings from State Of The DApps, more than 4000 applications are running on Ethereum, which is more than any other blockchain holds.
The ability to use Ethereum to create real-world digital solutions is one of the reasons why it will continue to thrive in the future. We suggest investing in Ethereum now while it’s mid-crash because the only way is up. To keep up with the current ETH value, take a look at these Ethereum price charts.
Ethereum Is the NFT King
Alternative smart contract blockchains are generating steam when it comes to NFTs, including Polygon, Solana, and Binance Smart Chain. However, Ethereum is still king of the NFT. If you take a look at this article from Forbes, you will see that the Ethereum blockchain accounts for around 76% of all NFTs. By dominating the NFT space, Ethereum will enjoy increased value from the mainstream adoption of blockchain gaming, which relies on NFTs.
Ethereum is Evolving
We mentioned “The Merge” briefly in the introduction. Traditionally, Ethereum used Proof-of-Work to validate transactions, but this was extremely energy-intensive and led to mass scepticism about the future of the blockchain. For years, Ethereum has been talking about revolutionizing its blockchain by pivoting towards Proof-of-Stake, which relies on validation.
See: Valkyrie Interview: Institutional Investors and Crypto Prices
This has rippled the blockchain community, especially those in the ETH mining business because their livelihood has been ripped away. However, the change has reduced their energy usage by around 99%, making Ethereum favourable among eco-warriors. Further, more developers will be able to apply to use the blockchain because of increased capacity, which will help boost its overall value.
Conclusion
Ethereum has recently had a revolutionary update to reduce energy usage and expand capacity, it still holds the NFT market crown despite rocky seas, and it has a rich infrastructure reliant on smart contracts that developers love. With all of this going for Ethereum, there’s no reason to delay investment.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Global Securities Wathdog IOSCO to Target Crypto Platforms
Yahoo Finance via Reuters | | Nov 24, 2022
LONDON (Reuters) - The crash of FTX exchange has injected greater urgency into regulating the crypto sector and targeting such 'conglomerate' platforms will be the focus for 2023, the new chair of global securities watchdog IOSCO said in an interview.
- Jean-Paul Servais said regulating crypto platforms could draw on principles from other sectors which handle conflicts of interest, such as at credit rating agencies and compilers of market benchmarks, without having to start from scratch.
- IOSCO, which coordinates rules for G20 countries and others, has already set out principles for regulating stablecoins, but now the focus is turning to platforms which trade in them. In mainstream finance there is functional separation between activities like broking, trading, banking services and issuance, with each having its own set of conduct rules and safeguards.
- "For investor protection reasons, there is a need to provide additional clarity to these crypto markets markets through targeted guidance in applying IOSCO’s principles to crypto assets," Servais said. "We intend to publish consultations report on these matters in the first half of 2023," he added.
- The European Union's new markets in cryptoassets or MiCA framework is an "interesting starting point" for developing global guidance as it focuses on supervision of crypto operators, said Servais, who also chairs Belgium's financial regulator FSMA.
See: MiCAR: EU Crypto Regulation in the Making
Jean-Paul Servais, Chair of IOSCO Board:
The sense of urgency was not the same even two or three years ago. There are some dissenting opinions about whether crypto is a real issue at the international level because some people think that it's still not a material issue and risk. Things are changing and due to the interconnectivity between different types of businesses, I think it's now important that we are able to start a discussion and that's where we are going.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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The Inventor of the Internet, Sir Tim Berners-Lee, Wants to Save Your Data From Big Tech with Browser Pods
EuroNews.Next | Pascale Davies
Sir Timothy Berners-Lee, the person who made it possible to read this online article, first came up with the concept of the Web back in 1989. The creator of the World Wide Web is now on a mission to save it.
- He believes tech platforms “control the world and manipulate people by providing information”.
- His solution to the dysfunctions of Web2.0 is the third layer of protocols, giving a person the ability to log into something with their own personal ID.
- He came up with a new project called Solid, and later a new company called Inrupt to help Solid launch. Berners-Lee’s platform can be accessed from your browser
See: Anthony Di Iorio Unveils Web3 Blockchain Hardware and Game Theory Project: Andiami
- But it is not an app; he calls it a “Pod,” where you can store your private data and access it very easily [with a key or digital ID].
- He said this is his vision for Web3.0, emphasising that it is not Web3 which uses the Ethereum blockchain system and promises to be decentralised.
- The issue with Web3 is that data such as health records can easily be traced; as it is public, making it secure is expensive. Speed is another issue and there are questions as to if it can be fully decentralised.
- Use case: Inrupt has worked with NGOs to help refugees by allowing them to share their Pod. They can then share their medical data, the clothes and tents they’ve been given, and register with the NGO, which saves time.
- “And so it's a sense that if [a Pod] is given to a person, they can just track what goes on completely privately and if they need to go to the police, they have a trail”.The Pods can help everyone in society keep their online data safe.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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The Impact Artificial Intelligence Has On Web 3.0
Guest Post | Nov 24, 2022
Image: Unsplash/Hitesh Choudhary
Modern business should be on the edge of technologies, which is why it is important to provide all the necessary services with the help of the internet. For this reason, people should know about the impact artificial intelligence will have on web 3.0 and how business depends on it. In fact, some elements of this unique technology, like machine learning solutions, are already used by many Canadian companies. This is because of the simplicity and opportunities this technology provides for the brands.
Key Features of Artificial Intelligence for Web 3.0
Many people have knowledge on the third generation internet thanks to the popularity of cryptocurrencies. Digital assets have shown the world that the future depends on high-end technologies that can simplify different aspects of modern business. But before the talk about AI perspectives, it is important to say a couple of words on what is the World Wide Web 3.0. In short, it is a next level of evolution for online technologies that will allow people to create websites that are much smarter and are connected to provide a better user experience. It will be really hard down a particular site, because they will start to work more like a torrent with a number of sources that will maintain the working status of the online platform.
But in order to make sure that the site with no single entity control will work correctly, it is important to use the most advanced technology with artificial intelligence implementation. Here are the main features that AI can provide to simplify the life of regular users and those that are going to be pretty handy for the business:
- Personalized ads. Companies are already doing their best in order to make ads much more personal. People need to see ads that will present things they truly need. It is very important to understand what users prefer and AI can analyze big data in order to make it possible.
- Smarter search engines. People need to look for certain things fast and the only way to do that is by using smarter search engines. Thanks to the documentations of technological giants, like Google and Yahoo, it is possible to adjust the content of a certain news website, online store or any other kind of business that is presented online, to make sure that all people who are interested in a certain product, will be able to find it fast.
- Digital trademarks. Many people might have heard about NFTs and how they allow you to buy the ownership rights for a certain picture or digital asset. Such non-fungible tokens can be implemented in the videos, songs to include trademarks that will be immediately recognized by AI to make sure that a product is protected from scammers.
See: Anthony Di Iorio Unveils Web3 Blockchain Hardware and Game Theory Project: Andiami
These are only a couple of features that will make each company better in the future. There are no doubts that AI is going to automate and make all brands much more accessible for millions of users around the world.
How Much It Is Going To Cost?
Many people are worrying that the implementation of advanced artificial intelligence tech is going to cost too much. But in fact, it is not, because unlike other kinds of solutions it is going to be automated for the most part. It means, the only real waste companies will have to make is buying a certain tool that will help them to improve a certain segment of the business. In rare cases, companies can seek help from specialists who will develop a unique solution based on artificial intelligence. Which also will not be the most expensive way of making a business much more profitable.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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