F|T: The FinTech Times – Canadian regulators tighten crypto rules as Dapper Labs cuts staff, faces class action lawsuit

Welcome to FinTech Times, a weekly newsletter covering the biggest FinTech news from around the world. If you want to read F|T before anyone else, be sure to subscribe using the form at the bottom of this page.

Canadian securities regulators tighten rules on crypto platforms after Voyager, Celsius, FTX collapse (BETAKIT)

These moves come in light of the recent collapse of a number of different unregulated international crypto trading platforms, from Voyager Digital to Celsius Network and FTX, amid the broader crypto downturn.

Jack Ma-Backed Ant Profits Fall 83% After Regulatory Cuts (BNN BLOOMBERG)

More than two years after the authorities torpedoed the IPO, Ant is waiting for the green light to apply for a license as a financial holding company. The company’s valuation was trimmed by Fidelity Investments again to $63.8 billion in November, well below its peak of $235 billion.

Dapper Labs cuts another 20 percent of staff while fending off class action (BETAKIT)

Vancouver-based Web3 firm Dapper Labs has laid off 20 percent of its full-time employees as part of a restructuring amid the crypto winter. These cuts represent Dapper Labs’ second round of significant layoffs since November, and come as the firm battles a class-action lawsuit that claims its NBA Top Shot NFTs constitute unregistered securities.

Join our panel of experts for this special webinar on the biggest challenges finance teams face with QuickBooks. Discover how Sage Intacct can help support your business’ growth.

Register for the webinar

Dapper Labs decision could spell trouble for other centralized NFT projects, experts say (COINDESK)

If Dapper Labs’ NBA Top Shots Moments are found to be securities, the company and its CEO could potentially face civil and criminal penalties for selling unregistered securities.

CDPQ makes management changes after writing off Celsius investments (BETAKIT)

Alexandre Synnett, Executive Vice President and CTO of CDPQ – and the executive involved in the CDPQ investment in Celsius – left the firm. According to the firm’s latest earnings call, CDPQ CEO Charles Emond noted that Synnett voluntarily resigned.

Gary Gensler on meeting with SBF and his crypto settlement (NEW YORK MAGAZINE)

According to Gensler, FTX was far too conflicted to satisfy the agency’s regulations. He said he told the group “that alternative trading systems were something among and for institutional investors” and that “just coming into compliance would require them to split their business to resolve the conflicts – that they should have a separate exchange, separate broker- dealer, separate custody, and that they were in the National Security Exchange zip code, not in the ATS zip code.”

Felix Health CFO Paritosh Gupta on why CFOs need a new approach to risk (BETAKIT)

Speaking on the Float Retained Learnings podcast, Gupta shared more about his belief that CFOs need to learn to experiment more.

Blocks loss of revenue but turns on revenue, gross profit (CNBC)

Analysts tend to focus on gross profit as a more accurate measurement of the company’s core transactional businesses.

The company posted a net loss of $114 million, or 19 cents per share, for the quarter.

Despite market conditions, 2022 second highest year ever for Canadian venture capital BetaKit (BETAKIT)

In the fourth quarter, $2.5 billion was invested in 162 deals. It ended the year with $10 billion across 706 deals.

In contrast, the third quarter of 2022 showed an annual and quarter-over-quarter decline with only $896 million invested across 144 VC deals.

Meet Ledn, The Last Crypto Lender (THE LOGIC)

As BetaKit previously reported, Toronto-based Ledn is one of the last crypto lenders operating, after 2022’s price crash forced its former peers into bankruptcy, fraud charges, or both. Ledn recently cut staff and stopped offering Bitcoin savings accounts as part of its push to register with the Ontario Securities Commission.

OMERS Ventures enters 2023 with new playbook as firm looks to launch fifth fund this year (BETAKIT)

Four years since John Ruffolo’s departure, OMERS Ventures has built its global venture fund out of Canada. But 2023 has brought more changes for the firm: with plans to launch its fifth fund this year, OMERS Ventures has overhauled its operational structure and brought together a global investment committee.

Polygon lays off 20% of its workforce as part of consolidation process (INC42)

“Earlier this year, we consolidated several business units under Polygon Labs. As part of this process, we are sharing the difficult news that we have reduced our team by 20%, affecting several teams and approximately 100 positions,” the startup said in a blog post .

Proposal for regulations for the Act on retail payment activities open for public comment (BETAKIT)

Finance Canada published the proposed regulations in the Canada Gazette. It expands on previously shared information about the RPAA, including operational risk management, securing user funds, as well as registration and reporting requirements with the Bank of Canada.

Covalent Partners With Coinbase To Launch Blockchain Network (VANCOUVER TECH JOURNAL)

The union allows Coinbase to look beyond currency exchange and into decentralized finance, gaming and social media.