Regulating Disruption

Mowat Centre | Sunil Johal and Michael Crawford Urban | May 11, 2017

Mowant centre regulating disruption - Regulating DisruptionGoverning in an era of rapid technological change:  In this report, the Mowat Centre examines the relationship between regulation and innovation in rapidly-changing technological industries. Building on this analysis and informed by examples from other jurisdictions, the authors suggest a suite of reforms to Canada’s regulatory frameworks and development processes aimed at enabling them to become more encouraging of innovation.

Executive Summary

Governments across the world are scrambling to respond to the arrival of innovative new digital services such as Uber, Netflix and Airbnb. While these services promise great benefits for Canadians, they also pose novel regulatory challenges to how governments are structured, engage with stakeholders and hire and train their staff.

How should governments regulate global services headquartered in other jurisdictions but available digitally within Canada? How can governments engage and encourage innovators and balance their needs with other stakeholders when government agencies struggle to hire and retain personnel who understand the technical issues involved? How can regulators successfully reconcile the deliberate pace of regulatory processes with the accelerating speed of innovation?

See: 

Identifying solutions to these questions will be a vital step towards securing Canada’s prosperity in the digital age. Other countries have already launched serious efforts aimed at reducing the burden of regulation as well as other measures designed to make their regulatory systems more innovation-friendly. Without renewed attention to this issue, Canada risks being left behind.

This report argues that Canadian governments can and should undertake a serious and sustained effort to bring their regulatory practices and culture out of the industrial age and into the digital age. Canadian governments have the opportunity to significantly boost innovation in several exciting ways, ranging from a greater embrace of design thinking in their regulatory design processes, to the initiation of programs for enhancing technological capacity within government, to the development of new tools to ensure vigorous competition in digital markets. By leveraging these opportunities, governments can make a significant and positive contribution to Canada’s future and ensure Canadians are well-positioned to promote and reap the benefits of innovation.

Continue to download PDF --> here

 


NCFA Jan 2018 resize - Regulating DisruptionThe National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with fintech, alternative finance, blockchain, cryptocurrency, crowdfunding and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

Latest news - Regulating DisruptionFF Logo 400 v3 - Regulating Disruptioncommunity social impact - Regulating Disruption

Forbes | Michael del Castillo and Steven Ehrlich | Oct 24, 2020 As much as bitcoiners and crypto enthusiasts try to deny it, bringing in converts from traditional finance is the best way to legitimize and publicize the industry in the eyes of many investors.  One of the earliest executives to take the leap was CoinShares executive chairman Daniel Masters. After a distinguished career with JP Morgan and elsewhere, he serendipitously stumbled upon bitcoin after the commodities supercycle ended following the global financial crisis. Forbes sat down with Masters to get his thoughts on the future of this industry. Forbes: How do you think this evolution towards CBDCs will impact traditional financial infrastructure? Masters: The most interesting aspect of CBDCs is the impact they will have on commercial banks and the financial system as a whole. Today, central banks issue currency to a slew of commercial banks like Chase and Bank of America. These banks do two things—create products and services such as mortgages, and deal with the end users. See:  US Federal Reserve Actively Working on Digital Dollar I think we are going into a new paradigm where central banks issue CBDCs, commercial banks cease to exist and the ...
Read More
Daniel masters 1 - Regulating Disruption
Reuters | Chris Taylor | Oct 22, 2020 NEW YORK - This year has taught us a lot of things, but here is one major 2020 lesson: Tech skills are a virtual necessity. Digital upskilling is not new: Amazon announced a $700 million initiative to boost the digital skills of its workforce last year. PwC rolled out its own $3 billion program, and a flurry of other corporate giants from Nationwide to Home Depot to IBM are all doing the same. The COVID-19 pandemic pressed the fast-forward button, however, accelerating a tech shift already taking place. According to PwC’s Global Digital IQ survey, 86% of top-performing companies reported that digital training programs boosted employee engagement and performance. Those in-demand gigs include software developer, digital marketing, IT admin, and data analyst. “Before there used to be tech jobs, and non-tech jobs,” said Joe Atkinson, PwC’s chief products and technology officer. “Now there are just ‘jobs’, and everyone needs to have comfort with technology.” See:  Why workplace learning matters more than ever Helping your Employees Manage their Most Sacred Commodity: Time Manager and machine: The new leadership equation So what tech skills are we talking about, exactly? Bite-size “If you ask an ...
Read More
women remote work - Regulating Disruption
Andreeson Horowitz |  Matthieu Hafemeister |  Oct 23, 2020 Historically, the definition of an investor has been almost entirely focused on the financial component: the flow of capital from those who have it to those who need it. More recently, the venture capital model expanded the perception of what it means to be an investor. Startups now look for those with expertise, a strong brand, connections, and a slew of other resources, in addition to deep pockets. Over the past decade, through the rise of alternative investments, fractional shares programs, and companies like Robinhood, it’s become easier for anyone to become an investor. However in the public markets, retail investors are often still viewed solely as capital providers. Companies are unlikely to know who their retail investors are, much less engage with them. See:  European Union Approves New Crowdfunding Rules that Apply to Member States, Funding Cap Set at €5 Million Hypothetically, let’s say you own shares in what we’ll call FintechCompany A. As a FintechCompany A shareholder, that likely means that you support the company’s vision, product, and leadership team and hope that it will succeed. But as a retail investor, owning shares is about as deep as the ...
Read More
retail investors and ambassadors - Regulating Disruption
NCFA Canada | Oct 23, 2020 JOIN US ON A STORYTELLING JOURNEY EVERY FRIDAY. EP45:  Mission-driven and Consumer-centric Financial Services Guest:  KEITH TAYLOR, Executive Director, DUCA Impact Lab (LinkedIn) Bio:  Keith Taylor is the Executive Director of The DUCA Impact Lab, an innovation hub founded by DUCA Financial Services Credit Union. The Impact Lab is a hub for leveraging emerging technology and community-based insight to build banking models that benefit all members of the community. Prior to DUCA, Keith worked as strategic advisor to a group of companies accounting for over $500 million of community investment annually. He started his career in international development working on business planning and finance for community owned businesses in the Caribbean. Since then, Keith has worked in Canada and internationally on a variety on initiatives focused on philanthropy, social enterprise, social finance and strategy. He holds an MBA from the Schulich School of Business at York University and a BA from Saint Francis Xavier University. About this episode: Keith Taylor, Executive Director of the DUCA Impact Lab chats with Anna Niemira about consumer-centric and fair banking.  They discuss how a group of underbanked Canadian newcomers back in 1954 focused on solving a real problem ...
Read More
FF EP45 Keith Taylor banner 2 - Regulating Disruption
DigFin |Oct 21, 2020 BNP Paribas Securities Services is reinventing a bank’s value where processing is no longer needed. One of the benefits of blockchain-based projects at Australia Stock Exchange and Hong Kong Stock Exchange is they will eliminate the bulk of post-trade processing. No more reconciliations between investors, corporates, brokers and custodians – because all relevant data is tracked on a shared ledger. Ditto for the paperwork among fund managers, distributors, registrars and transfer agencies, once tracking fund subscriptions and redemptions and cutting NAVs is fully automated in one network. See:  4 Digital Transformation Lessons that Banks Need to Learn from Covid-19 BNP Paribas Securities Services is embracing blockchain, A.I. and other digital technologies to reinvent the custodian of the future. It has recently announced plans to introduce “smart elections” for shareholders in 2021, a project done with blockchain vendor Digital Asset. Gary O’Brien, Hong Kong-based head of custody and clearing products for Asia Pacific, said, “The core role for us is in asset services, reporting and settling transactions. But we are also taking client requests and transaction details to the market in the format they need, and vice versa. He says this is in line with what ASX ...
Read More
Blockchain and custodian solutions - Regulating Disruption
BCBusiness | Michael McCullough | Oct 20, 2020 Will COVID-19 be the shock that finally shakes up our stodgy (and expensive) payment systems? If you’re like me, you have a small pile of change on your dresser or bedside table. It’s been making the rounds of your pants and jacket pockets for months. As the COVID-19 pandemic has mandated a shift to contactless payment—the tap of a credit card or scan of a phone app—those coins have become excess baggage. And the change could be permanent. “You have a whole swath of the population that’s been forced to adopt financial technology,” observes Steve Marshall, CEO of RevoluGroup Canada, a Vancouver-based digital payments startup. “There’s no going back.” It’s already happening in Europe, says the globe-trotting Brit, who led a reverse takeover of a mineral exploration company listed on the TSX Venture Exchange in 2016 to create RevoluGroup and pivot to digital payments. Today’s cash-free COVID economy is further pressuring Canada’s government to create a legal framework for so-called open banking. See:  Global Risk Institute Report: Discussing Open Banking Regulation for Canada The concept got its start more than a decade ago in China, where phone apps such as Alipay and ...
Read More
Payments and Open Banking - Regulating Disruption
Finance Magnates | Oct 19, 2020 Crypto assets continue to be some of the most promising instruments traded in 2020. To better understand this growing space, Finance Magnates spoke with Konstantin Anissimov, Executive Director at UK cryptocurrency exchange, CEX.IO for his perspective. CEX.IO Has Become One of the First Exchanges to Onboard Institutional Clients. What Was the Impetus behind This Strategy and What Are Your Goals in Doing So? I’ll start by saying that the strategy for onboarding institutional clients is related to the situation in the market. More and more corporate and institutional investors are moving towards crypto as an alternative investment asset. And in doing so, they are looking for trusted, reliable partners. Our strategy has been to create the tools and the platform for institutional clients which provides a way to invest in crypto assets that is trustworthy, secure and in-line with their expectations for compliance and effectiveness. See:  The case against BitMEX is a compass pointing towards the future of crypto regulation In terms of our goals within this strategy, at CEX.IO we feel that the institutional space is going to grow tremendously in the next 2-3 years, and we plan to be at the forefront ...
Read More
Konstantin Anissimov CEX.io  - Regulating Disruption
Guest Post | Oct 21, 2020 It's essential for businesses in Canada to keep up to date with the latest programs and initiatives that could be of benefit to their brands, and any company investing in scientific research or experimental development should absolutely be aware of the SR&ED program. This guide will take a look at what the SR&ED program is, how it works, how eligibility works, and so on. What Is the SR&ED Program? The SR&ED program stands for Scientific Research and Experimental Development. It's a tax incentive program, designed to encourage more companies to carry out research and development activities in Canada. Each year, more than 20,000 individual claimants are awarded over $3 billion in tax incentives, and the vast majority of companies benefiting from this scheme are small businesses and start-ups. Tax incentive programs like the SR&ED program have been used in Canada for decades, and the SR&ED program is yet another example of Canada rewarding companies that carry out important research and innovative development within its borders. It's the biggest single support program for research and development in the nation of Canada, and when compared to the programs of other countries, it's also one of the ...
Read More
Scientific Research and Experimental Design Program - Regulating Disruption
Cointelegraph | Helen Partz | Oct 21, 2020 Shares of Canada’s first publicly listed Bitcoin fund are up 30% since its launch in April. Canadian digital asset manager 3iQ has recorded a major milestone fo its public Bitcoin (BTC) fund. The Bitcoin Fund — Canada’s first Bitcoin fund listed on a major stock exchange — has crossed the $100 million market cap threshold, 3iQ announced in an Oct. 20 tweet. Tyler Winklevoss, a major cryptocurrency investor and a co-founder of United States’ Gemini crypto exchange, congratulated 3iQ on the milestone.  As previously reported, 3iQ launched its Bitcoin fund in April 2020, listing the Bitcoin Fund’s shares (QBTC.U) on the Toronto Stock Exchange. At the launch, the Bitcoin Fund listed nearly 1.5 million Class A shares on the exchange. See:  Bitcoin price hits record high for 2020 after PayPal finally adds cryptocurrency In conjunction with a new market cap milestone, the Bitcoin Fund’s shares have seen significant growth since its launch. At publishing time, QBTC.U is trading at $15.80, up about 30% from $11 when it was listed in April. At the launch, Winklevoss claimed that it was the “first public Bitcoin fund listed on a major stock exchange.” Winklevoss’s ...
Read More
Cointelegraph 3iq news - Regulating Disruption
Business Insider | Ben Winck | Oct 21, 2020 Bitcoin leaps to highest since July 2019 after PayPal opens service to cryptocurrencies Bitcoin spiked as much as 8% higher on Wednesday after PayPal revealed it will soon allow users to buy, sell, and hold the popular cryptocurrency. The leap pushed bitcoin to an intraday peak of $12,817.17, its highest level since July 2019. PayPal's Wednesday announcement marks the latest move by a financial-services giant to accept cryptocurrencies. Billionaire investor and bitcoin bull Michael Novogratz deemed PayPal's move "the biggest news of the year in crypto." Bitcoin soared as much as 8% on Wednesday after PayPal announced it would open its service to cryptocurrency purchases and sales. The rally placed bitcoin at an intraday high of $12,817.17, well above its previous 2020 record of $12,473. The Wednesday peak marks bitcoin's highest level since July 2019. See:  Square’s Major Bitcoin Buy: Puts 1% of Total Assets Worth $50 Million in BTC The world's largest cryptocurrency is up more than 11% this week alone. Bitcoin broke through the key $12,000 level on Tuesday, and the PayPal news adds more fuel to the upswing. PayPal said Wednesday it will allow its users to buy, ...
Read More
Crypto and paypal - Regulating Disruption