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FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, "smart contracts" or new clearing and settling services.
Introduction
Attitude of the country towards financial services using crypto currencies
Social climate is seeking more DLT related financial services. Political climate varies from province to province; however provincial and federal regulators realize clear regulations are required to meet the demand. IIROC is the central regulating entity in Canada and their regulations are in the process of being clarified and published.
Legal affairs
Obligations and requirements to provide financial services using crypto currencies described above
There are a multitude of requirements to provide financial service using cryptocurrencies. Licensing is required from each provincial security regulator along with (soon to be) IIROC and FINTRAC. Costs to acquire required licenses can be broken down: filing costs in each province - ~$75,000; costs to be provincially regulated - ~$250.000; financial reserves vary depending on the application – typically $500.000 on average.
Additional comments regarding the legal situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area
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Economic conditions
Market size for financial services using crypto currencies and biggest companies in this business area
The size of financial services market for cryptocurrencies is immense and growing. We would estimate the size of the market at $5 billion and growing with millions of daily transactions. The biggest companies are: Wealthsimple, Bitbuy, Coinsmart.
Additional comments regarding the economic situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area
N/A