David Durand, Advisor, Innovation and Advocacy
September 9th, 2020
David Durand, LL.L., B.Sc. chem., – Founder and Managing Partner of Durand Lawyers – Lawyer (Québec)[...]
SEC Launches Fintech Hub To Engage With Cryptocurrency Startups And More
Forbes | | Oct 18, 2018
The U.S. Securities and Exchange Commission is launching a portal for engaging with companies using blockchain, artificial intelligence and more.
Available today, the new fintech hub, or FinHub for short, is designed to bring the SEC’s existing services to a single access point and provide an easier way for companies to communicate with the public.
As startups building with blockchain increasingly come under the SEC’s attention, the new portal has the potential to streamline the process of building compliant platforms prior to launch.
The SEC’s FinHub will be led by Valerie A. Szczepanik, senior advisor for digital assets and innovation and associate director in the SEC’s Division of Corporation Finance.
“We’ve been doing these things for years,” Szczepanik told Forbes. “This is going to bring it all together.”
The FinHub will be staffed by representatives from the SEC’s divisions and offices who have expertise and involvement in fintech-related issues.
See: Canadian securities regulators provide additional guidance on securities law implications for offerings of tokens
In addition to asking questions of the SEC, those who use the site will be able to request meetings. To increase engagement, a binary code “Easter egg” message has been hidden on the page.
Over the past year the number of cases being publicly pursued by the SEC has increased. As a result the U.S securities regulator earlier this year published a webpage that spoofed scam websites as a way to educate potential investors and blockchain builders. The new portal appears to be an extension of that strategy.
Continue to the full article --> here
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CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!   |
The Verge | Nick Statt | Feb 23, 2021 3,319 coins at an average price of $51,236 per coin Square has just made another colossal investment in bitcoin, more than tripling its last investment in the cryptocurrency with a $170 million purchase of tokens. The digital payments company, which is run by vocal bitcoin advocate and Twitter CEO Jack Dorsey, disclosed the investment in its quarterly earnings report on Tuesday. See: TESLA Coin Now Appears on CoinMarketCap. Is Elon Revving the Engine Up? The company purchased about 3,318 bitcoins at an average price of $51,236, which signals remarkable confidence in bitcoin as it reaches record heights and invites renewed skepticism about its stability. “Aligned with the company’s purpose, Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future,” reads the company’s press release announcing the purchase. “The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis.” Square first announced a major bitcoin investment in October of last year when it purchased $50 ...
Read More
York University | Feb 16, 2021 A proposal submitted to the Bank of Canada by a team of academic researchers from Osgoode Hall Law School and the University of Toronto (U of T) on what a central bank digital currency framework could look like in Canada has been selected as one of three proposals to be developed by the bank into a full report. The bank is undertaking research to potentially launch a digital currency alongside the country’s banknotes, and invited universities to play a role in this innovation by entering the Model X Design Challenge. The challenge was meant to encourage the development of “foundational ideas” for a central bank digital currency business model and system architecture (known as “Model X”), according to the bank. While no decision has been taken to issue a central bank digital currency, the Bank of Canada notes “it is working to design and develop one, along with a business model, as a contingency.” A central bank digital currency is a digital unit of payment, comparable to digital coins such as Bitcoin, but that is issued and backed by a central bank as opposed to a private network. It has similar characteristics to cash, ...
Read More
Versabank Release | Feb 24, 2021 VersaBank Partners with Stablecorp to Complete Development of Digital Currency Offering – Will Create Significant New Low Cost Deposit Source for VersaBank as it Experiences Record Loan Growth LONDON, ON, Feb. 24, 2021 /PRNewswire/ - VersaBank (TSX: VB) ("VersaBank" or the "Bank"), a North American leader in business-to-business digital banking and technology solutions for cybersecurity, today announced it plans to launch a strong encryption based digital currency (cryptocurrency) represented one-to-one by a Canadian dollar bank deposit with the Bank, to be known as VCAD. VCAD is expected to be the first digital currency to represent a fiat currency, as well as the first in the world digital currency issued by and backed by deposits with a North American bank. As such, VCAD will offer the highest level of stability and security amongst all digital currencies in the market today. See: A Brilliant Fintech Future – Banking on Stablecoins VersaBank has entered into a strategic partnership with Stablecorp, a joint venture between Canada's leading crypto asset manager, 3iQ, and Mavennet, a Canadian leader in blockchain development, to commercially launch VCAD. VCAD is based on VersaBank's proprietary banking software and the digital currency issuance processes for VCAD will ...
Read More
Fintech Magazine | William Girling | Feb 18, 2021 Finance giant Mastercard has teamed up with Island Pay to deliver a world first: a digital currency-linked payment card backed by a central bank Held together by Central Bank of The Bahamas, the collaboration will enable people to use an official digital currency called ‘The Bahamas Sand Dollar’ for purchases via a prepaid card. Transactions carried out with the card are automatically converted from digital to fiat currency and will be legal tender for goods and services on the islands (of which there are 700), as well as around the world. See: It’s instant – I get a message, and it’s received: Central bankers comb for crypto clues as Bahamas launches ‘Sand Dollar’ It is hoped that the Sand Dollar will create a more financially inclusive economy, promote more diverse purchasing methods, and facilitate government disbursements. The same value and protections will apply as the Bahamas’ traditional currency. Modernising payments in the Bahamas The Sand Dollar was originally trialled in 2019 and went on to become the first digital incarnation of a national currency in circulation late last year. Mastercard’s virtual testing environment allowed developers to chart the issuance, distribution and ...
Read More
KABN | Cara Buckspan | Feb 24, 2021 Company launches integrated Liquid Avatar, Augmented Reality and NFT media program of iconic 1960's toy and collector brand. TORONTO, ON and NEW YORK, NY / ACCESSWIRE / February 24, 2021 / KABN Systems NA Holdings Corp. / Liquid Avatar Technologies Inc. (CSE:KABN)(OTC Pink:TRWRF)(FRA:4T51) (the "Company") (www.kabnsystemsna.com), a North American fintech solutions company specializing in empowering individuals to manage, control and generate value from their biometrically-verified Self Sovereign Identity ("SSI") through its Liquid Avatar (www.liquidavatar.com) platform, is pleased to announce that the Company has partnered with the iconic toy brand, The Outer Space Men (www.theouterspacemen.com). The Outer Space Men is a toy and collector brand that spans over half a century of celebration as both a vintage and modern collectible assembly of action figures. The OSM were first created when man's greatest achievement was to land on the moon during the infamous Space Race of the 1960's. The Outer Space Men characters will be used for a series of integrated media programs for Liquid Avatar. The integrated campaign, expected to launch in early spring 2021 will feature a series of limited edition 2D and 3D Liquid Avatar digital icons available in the Liquid Avatar Marketplace ...
Read More
Bitcoin.com | Jeffrey Gogo | Feb 23, 2021 Bitfinex and Tether have been banned from operating in New York and must pay a fine of $18.5 million as part of a settlement with the New York Attorney General’s (NYAG’s) office over a case dating back to 2019. In a statement on Tuesday, NY Attorney General Letitia James accused the two entities of hiding severe losses from investors. “Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” said James. See: Are Stablecoins Better Than Bitcoin? She continued: “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie. These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system.” Per the statement, an NY Attorney General’s investigation found that the companies made false statements about the backing of tether, with Bitfinex using Tether’s funds to clandestinely cover an $850 million financial hole at its bank Crypto Capital in Panama. Tether published a statement on Tuesday “admitting to no wrongdoing.” It argued: The Attorney General’s Office concluded, in ...
Read More
Investment Executive | Fiona Collie | Feb 22, 2021 Financial services firms are using AI to create smart trading platforms and identify client needs Technology is everywhere in the financial services industry, and banks have been building their artificial intelligence (AI) bona fides in recent years. Components of AI include natural-language processing, which uses technology to analyze the spoken and written language, and machine learning, which uses algorithms to analyze and learn from large amounts of data. See: Top 12 AI Use Cases: Artificial Intelligence in FinTech Since 2016, Royal Bank of Canada (RBC) has focused on AI through its dedicated research division called Borealis AI. In October 2020, Borealis AI and RBC announced the launch of Aiden, an AI-driven electronic trading platform for institutional investors. Aiden uses “reinforcement learning.” For every trade [Aiden] makes, it also justifies why it just did that,” Agrafioti said. “And that gives people confidence and trust that they understand the context of the algorithm they’re seeing.” a form of AI based on behavioural psychology that either rewards or penalizes an algorithm when it makes a decision. This is the same type of machine learning used for AlphaGo, a Google-owned computer program that beat a human ...
Read More
FCA Consultation | Jan 28, 2021 We’ve identified barriers to the success of open banking and future innovation in UK payments. To address these, we’re proposing amendments to our Technical Standards on Strong Customer Authentication and Common and Secure Methods of Communication. We’re also taking this opportunity to amend our guidance on prudential risk management and safeguarding in our Approach Document (AD), and make general updates to a number of areas and onshoring-related changes. We’re also updating our Perimeter Guidance Manual (PERG). One section of the CP, relating to contactless payments, will close on 24 February 2021. The rest will close on 30 April 2021. See: Accelerating winds of change in global payments The payments landscape has grown and evolved in recent years, as business models adapt to user needs. The coronavirus (Covid-19) pandemic has accelerated these changes. This consultation will help us make sure regulatory expectations keep pace with the changing landscape. We want to remove identified barriers to continued growth, innovation and competition in the payments and e-money sector (including open banking), while making the sector more resilient and protecting consumers if firms fail. Who this applies to Payment service providers (PSPs) and e-money issuers, as well as ...
Read More
Digital Sandbox Pilot UK | Feb 20, 2021 The pilot ran from November 2020 through to February 2021. An evaluation process is currently being undertaken by an independent consultant. The pilot will be assessed against the 5 success criteria: Innovation – role played in encouraging innovation in financial services to the Covid-related challenges detailed in the use cases Speed – role played in enabling quicker testing and development of proof of concepts Collaboration – role played in fostering collaboration, facilitating diversity of thinking and creating an ecosystem of key organisations Pilot features – the effectiveness of the key features of the pilot (see below) in stimulating and accelerating innovation Sustainable future – role played in informing and assisting the design and future operating model of a permanent digital sandbox See: UK Digital sandbox – coronavirus (Covid-19) pilot Select Teams and Descriptions Fraud & scams Sedicii: An AML solution that allows financial institutions to securely share knowledge about clients or transactions without disclosing any underlying data or information. EalaX Ltd: A solution that creates digital synthetic twins of real financial data which can then be used to detect fraudulent patterns and complex problems that are being experienced during Covid-19. MPC4AML: A solution ...
Read More
Cato Institute | Jennifer J. Schulp | Feb 18, 2021 By no means should the GameStop phenomenon result in changes that restrict retail investors’ access to the markets. Before the Committee on Financial Services, U.S. House of Representatives Introduction Chairwoman Waters, Ranking Member McHenry, and distinguished members of the Committee on Financial Services, my name is Jennifer Schulp, and I am the Director of Financial Regulation Studies at the Cato Institute’s Center for Monetary and Financial Alternatives. See: Retail investors are becoming more than shareholders I thank you for the opportunity to take part in today’s hearing entitled, “Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide.” Watch the testimony C-span here: Retail Investing Before addressing the GameStop phenomenon specifically, I’d like to address the participation of retail, or individual, investors in our public equities markets. Retail participation has ebbed and flowed over the years, but the recent trend toward increased retail participation accelerated sharply during the pandemic. Approximately one-fifth of market trading volume is now attributable to retail orders, which is a substantial increase over 2019.1 Most commentators point to the increasing availability of zero-commission trading as drawing in more individual investors. In ...
Read More
The Verge | Nick Statt | Feb 23, 2021 3,319 coins at an average price of $51,236 per coin Square has just made another colossal investment in bitcoin, more than tripling its last investment in the cryptocurrency with a $170 million purchase of tokens. The digital payments company, which is run by vocal bitcoin advocate and Twitter CEO Jack Dorsey, disclosed the investment in its quarterly earnings report on Tuesday. See: TESLA Coin Now Appears on CoinMarketCap. Is Elon Revving the Engine Up? The company purchased about 3,318 bitcoins at an average price of $51,236, which signals remarkable confidence in bitcoin as it reaches record heights and invites renewed skepticism about its stability. “Aligned with the company’s purpose, Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future,” reads the company’s press release announcing the purchase. “The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis.” Square first announced a major bitcoin investment in October of last year when it purchased $50 ...
Read More
Read More
York University | Feb 16, 2021 A proposal submitted to the Bank of Canada by a team of academic researchers from Osgoode Hall Law School and the University of Toronto (U of T) on what a central bank digital currency framework could look like in Canada has been selected as one of three proposals to be developed by the bank into a full report. The bank is undertaking research to potentially launch a digital currency alongside the country’s banknotes, and invited universities to play a role in this innovation by entering the Model X Design Challenge. The challenge was meant to encourage the development of “foundational ideas” for a central bank digital currency business model and system architecture (known as “Model X”), according to the bank. While no decision has been taken to issue a central bank digital currency, the Bank of Canada notes “it is working to design and develop one, along with a business model, as a contingency.” A central bank digital currency is a digital unit of payment, comparable to digital coins such as Bitcoin, but that is issued and backed by a central bank as opposed to a private network. It has similar characteristics to cash, ...
Read More
Read More
Versabank Release | Feb 24, 2021 VersaBank Partners with Stablecorp to Complete Development of Digital Currency Offering – Will Create Significant New Low Cost Deposit Source for VersaBank as it Experiences Record Loan Growth LONDON, ON, Feb. 24, 2021 /PRNewswire/ - VersaBank (TSX: VB) ("VersaBank" or the "Bank"), a North American leader in business-to-business digital banking and technology solutions for cybersecurity, today announced it plans to launch a strong encryption based digital currency (cryptocurrency) represented one-to-one by a Canadian dollar bank deposit with the Bank, to be known as VCAD. VCAD is expected to be the first digital currency to represent a fiat currency, as well as the first in the world digital currency issued by and backed by deposits with a North American bank. As such, VCAD will offer the highest level of stability and security amongst all digital currencies in the market today. See: A Brilliant Fintech Future – Banking on Stablecoins VersaBank has entered into a strategic partnership with Stablecorp, a joint venture between Canada's leading crypto asset manager, 3iQ, and Mavennet, a Canadian leader in blockchain development, to commercially launch VCAD. VCAD is based on VersaBank's proprietary banking software and the digital currency issuance processes for VCAD will ...
Read More
Read More
Fintech Magazine | William Girling | Feb 18, 2021 Finance giant Mastercard has teamed up with Island Pay to deliver a world first: a digital currency-linked payment card backed by a central bank Held together by Central Bank of The Bahamas, the collaboration will enable people to use an official digital currency called ‘The Bahamas Sand Dollar’ for purchases via a prepaid card. Transactions carried out with the card are automatically converted from digital to fiat currency and will be legal tender for goods and services on the islands (of which there are 700), as well as around the world. See: It’s instant – I get a message, and it’s received: Central bankers comb for crypto clues as Bahamas launches ‘Sand Dollar’ It is hoped that the Sand Dollar will create a more financially inclusive economy, promote more diverse purchasing methods, and facilitate government disbursements. The same value and protections will apply as the Bahamas’ traditional currency. Modernising payments in the Bahamas The Sand Dollar was originally trialled in 2019 and went on to become the first digital incarnation of a national currency in circulation late last year. Mastercard’s virtual testing environment allowed developers to chart the issuance, distribution and ...
Read More
Read More
KABN | Cara Buckspan | Feb 24, 2021 Company launches integrated Liquid Avatar, Augmented Reality and NFT media program of iconic 1960's toy and collector brand. TORONTO, ON and NEW YORK, NY / ACCESSWIRE / February 24, 2021 / KABN Systems NA Holdings Corp. / Liquid Avatar Technologies Inc. (CSE:KABN)(OTC Pink:TRWRF)(FRA:4T51) (the "Company") (www.kabnsystemsna.com), a North American fintech solutions company specializing in empowering individuals to manage, control and generate value from their biometrically-verified Self Sovereign Identity ("SSI") through its Liquid Avatar (www.liquidavatar.com) platform, is pleased to announce that the Company has partnered with the iconic toy brand, The Outer Space Men (www.theouterspacemen.com). The Outer Space Men is a toy and collector brand that spans over half a century of celebration as both a vintage and modern collectible assembly of action figures. The OSM were first created when man's greatest achievement was to land on the moon during the infamous Space Race of the 1960's. The Outer Space Men characters will be used for a series of integrated media programs for Liquid Avatar. The integrated campaign, expected to launch in early spring 2021 will feature a series of limited edition 2D and 3D Liquid Avatar digital icons available in the Liquid Avatar Marketplace ...
Read More
Read More
Bitcoin.com | Jeffrey Gogo | Feb 23, 2021 Bitfinex and Tether have been banned from operating in New York and must pay a fine of $18.5 million as part of a settlement with the New York Attorney General’s (NYAG’s) office over a case dating back to 2019. In a statement on Tuesday, NY Attorney General Letitia James accused the two entities of hiding severe losses from investors. “Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” said James. See: Are Stablecoins Better Than Bitcoin? She continued: “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie. These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system.” Per the statement, an NY Attorney General’s investigation found that the companies made false statements about the backing of tether, with Bitfinex using Tether’s funds to clandestinely cover an $850 million financial hole at its bank Crypto Capital in Panama. Tether published a statement on Tuesday “admitting to no wrongdoing.” It argued: The Attorney General’s Office concluded, in ...
Read More
Read More
Investment Executive | Fiona Collie | Feb 22, 2021 Financial services firms are using AI to create smart trading platforms and identify client needs Technology is everywhere in the financial services industry, and banks have been building their artificial intelligence (AI) bona fides in recent years. Components of AI include natural-language processing, which uses technology to analyze the spoken and written language, and machine learning, which uses algorithms to analyze and learn from large amounts of data. See: Top 12 AI Use Cases: Artificial Intelligence in FinTech Since 2016, Royal Bank of Canada (RBC) has focused on AI through its dedicated research division called Borealis AI. In October 2020, Borealis AI and RBC announced the launch of Aiden, an AI-driven electronic trading platform for institutional investors. Aiden uses “reinforcement learning.” For every trade [Aiden] makes, it also justifies why it just did that,” Agrafioti said. “And that gives people confidence and trust that they understand the context of the algorithm they’re seeing.” a form of AI based on behavioural psychology that either rewards or penalizes an algorithm when it makes a decision. This is the same type of machine learning used for AlphaGo, a Google-owned computer program that beat a human ...
Read More
Read More
FCA Consultation | Jan 28, 2021 We’ve identified barriers to the success of open banking and future innovation in UK payments. To address these, we’re proposing amendments to our Technical Standards on Strong Customer Authentication and Common and Secure Methods of Communication. We’re also taking this opportunity to amend our guidance on prudential risk management and safeguarding in our Approach Document (AD), and make general updates to a number of areas and onshoring-related changes. We’re also updating our Perimeter Guidance Manual (PERG). One section of the CP, relating to contactless payments, will close on 24 February 2021. The rest will close on 30 April 2021. See: Accelerating winds of change in global payments The payments landscape has grown and evolved in recent years, as business models adapt to user needs. The coronavirus (Covid-19) pandemic has accelerated these changes. This consultation will help us make sure regulatory expectations keep pace with the changing landscape. We want to remove identified barriers to continued growth, innovation and competition in the payments and e-money sector (including open banking), while making the sector more resilient and protecting consumers if firms fail. Who this applies to Payment service providers (PSPs) and e-money issuers, as well as ...
Read More
Read More
Digital Sandbox Pilot UK | Feb 20, 2021 The pilot ran from November 2020 through to February 2021. An evaluation process is currently being undertaken by an independent consultant. The pilot will be assessed against the 5 success criteria: Innovation – role played in encouraging innovation in financial services to the Covid-related challenges detailed in the use cases Speed – role played in enabling quicker testing and development of proof of concepts Collaboration – role played in fostering collaboration, facilitating diversity of thinking and creating an ecosystem of key organisations Pilot features – the effectiveness of the key features of the pilot (see below) in stimulating and accelerating innovation Sustainable future – role played in informing and assisting the design and future operating model of a permanent digital sandbox See: UK Digital sandbox – coronavirus (Covid-19) pilot Select Teams and Descriptions Fraud & scams Sedicii: An AML solution that allows financial institutions to securely share knowledge about clients or transactions without disclosing any underlying data or information. EalaX Ltd: A solution that creates digital synthetic twins of real financial data which can then be used to detect fraudulent patterns and complex problems that are being experienced during Covid-19. MPC4AML: A solution ...
Read More
Read More
Cato Institute | Jennifer J. Schulp | Feb 18, 2021 By no means should the GameStop phenomenon result in changes that restrict retail investors’ access to the markets. Before the Committee on Financial Services, U.S. House of Representatives Introduction Chairwoman Waters, Ranking Member McHenry, and distinguished members of the Committee on Financial Services, my name is Jennifer Schulp, and I am the Director of Financial Regulation Studies at the Cato Institute’s Center for Monetary and Financial Alternatives. See: Retail investors are becoming more than shareholders I thank you for the opportunity to take part in today’s hearing entitled, “Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide.” Watch the testimony C-span here: Retail Investing Before addressing the GameStop phenomenon specifically, I’d like to address the participation of retail, or individual, investors in our public equities markets. Retail participation has ebbed and flowed over the years, but the recent trend toward increased retail participation accelerated sharply during the pandemic. Approximately one-fifth of market trading volume is now attributable to retail orders, which is a substantial increase over 2019.1 Most commentators point to the increasing availability of zero-commission trading as drawing in more individual investors. In ...
Read More
Read More
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