Canada’s Office of the Superintendent of Financial Institutions (OSFI) said in a statement that it maintains a technology-neutral stance and does not view tokenized deposits or other digital forms of deposits as legally distinct from traditional deposits. The regulator said the underlying technology used in a financial product or service does not determine its legal character.
OSFI also said federally regulated financial institutions must make sure their innovation activities comply with applicable laws and regulations, including activities carried out on their behalf by third parties. The statement pointed institutions to existing supervisory expectations, including Guideline B-13 on Technology and Cyber Risk Management and Guideline B-10 on Third-Party Risk Management.
Before launching any new product or service, financial institutions are required to engage with their OSFI lead supervisor in advance. The regulator added that institutions should seek legal advice when necessary. The statement lays out OSFI’s compliance expectations for tokenized and other digitally delivered deposit-related initiatives without assigning a different legal status based solely on the technology involved.
Canada’s Office of the Superintendent of Financial Institutions (OSFI) said in a statement that it takes a technology-neutral approach and views tokenized deposits and other digital deposits as legally no different from traditional deposits.
OSFI said the underlying technology behind a financial product or service does not determine its legal nature. It also said financial institutions must ensure that innovation activities comply with relevant laws and regulations, including activities executed by third parties on their behalf.
The regulator said institutions must follow existing guidance, including Guideline B-13 on Technology and Cyber Risk Management and Guideline B-10 on Third-Party Risk Management. Before introducing any new product or service, financial institutions must communicate with their OSFI lead supervisor in advance and seek legal advice when necessary.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
