Canadian financial regulator rules tokenized deposits have same legal status as traditional deposits

Odaily News: The Office of the Superintendent of Financial Institutions (OSFI) is Canada's banking regulator. The agency said on Thursday that tokenized deposits are not legally distinct from traditional deposits, noting that the underlying technology used by a financial product or service does not determine its legal nature.

OSFI stated that financial institutions may conduct tokenized deposit business under existing financial regulatory laws without the need for additional regulatory rules. Financial institutions and third parties conducting related activities on their behalf must ensure their operations comply with applicable laws and regulations.

OSFI requires financial institutions to communicate in advance with the responsible OSFI supervisor before launching new products or services, and recommends seeking legal advice before launch. The agency oversees nearly 350 financial institutions and 1,200 pension plans. (Bitcoin.com News)