Canada’s Financial Regulator Says Tokenized Deposits Have the Same Legal Status as Traditional Deposits Canada’s Office of the Superintende…
Canada’s Financial Regulator Says Tokenized Deposits Have the Same Legal Status as Traditional Deposits
Canada’s Office of the Superintendent of Financial Institutions (OSFI) said it takes a technology-neutral approach to the business and activities permitted for federally regulated financial institutions. Tokenized and other digitally represented deposits are not legally distinct from traditional deposits.
OSFI said financial institutions and third parties acting on their behalf must comply with applicable laws and regulations, including guidelines B-13 on technology and cyber risk management and B-10 on third-party risk management. Institutions should consult their OSFI lead supervisors before launching novel products or services and seek legal advice where appropriate.