Statement of Expectations Issued to Regulated Entities Engaging in Crypto-Related Services or Crypto-Asset Activities
The Office of the Superintendent of Financial Institutions (OSFI), the Financial Consumer Agency of Canada (FCAC) and the Canada Deposit Insurance Corporation (CDIC) issued yesterday a statement to all regulated entities that carry out crypto-related services or engage in crypto-asset activities (the “Statement”) reinforcing their expectations that federally regulated entities comply with all regulatory requirements and with any guidance when engaging in crypto-related services or crypto-asset activities.
OSFI, FCAC, and CDIC, among other federal agencies, have been concertedly monitoring the risks that crypto-related services and crypto-asset activities pose to consumers and the financial system more broadly. These efforts align with the Department of Finance’s continuing work with respect to the digitalization of money.
Highlights
The Statement sets out OSFI, FCAC and CDIC expectations regarding:
- compliance with existing federal financial laws, as well as regulations or guidance issued by federal and provincial regulatory agencies;
- prudential regulation, including the regulatory capital and liquidity treatment of crypto-asset exposures;
- enhanced consumer protection requirements and measures; and
- disclosure obligations concerning the ineligibility of deposit insurance protection under the CDIC Act for crypto assets.
Looking Forward
Regulated entities engaging in crypto-related services or crypto-asset activities should review the Statement carefully to ensure they understand the regulatory landscape and their duties and responsibilities across it. They should also proactively monitor regulatory changes to ensure continued compliance.
For further information concerning regulatory requirements applicable to crypto-related services or crypto-asset activities, please contact any member of our Financial Services Regulatory Group.
The author would like to thank Cathy Costa-Faria, Associate for her assistance in writing this Update.Expertise
Authors
Insights
-
Financial Services Regulatory
Canadian Securities Administrators Extend Compliance Deadline in Interim Approach to Value-Referenced Crypto Assets
On April 17, 2024, the Canadian Securities Administrators (CSA) provided an update to their interim approach in respect of “Value-Referenced Crypto Assets” (VRCAs), as set out in the CSA’s guidance in… -
Financial Services Regulatory
Obligations and Opportunity - Budget 2024’s Impact on the Blockchain Industry
As crypto-assets become subject to further regulation both domestically and globally, industry players find themselves presented not only with new obligations but also with new opportunities. Canada’s… -
Financial Services Regulatory
Budget 2024 Announces Additional Measures to Combat Financial Crime
In Budget 2024, the Government of Canada announced its intentions to amend the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), the Criminal Code, the Income Tax Act, and… -
Financial Services Regulatory
OSFI Releases New Framework to Modernize Financial Supervision
On February 8, 2024, the Office of the Superintendent of Financial Institutions (OSFI) announced a new framework (the “Framework”) for supervising federally regulated financial institutions (FRFIs… -
Financial Services Regulatory
The Bank of Canada Opens Consultation for Supervisory Guidelines
The Bank of Canada continues preparations for its supervision of payment service providers (PSPs) under the Retail Payment Activities Act (RPAA). The Bank has published draft supervisory guidelines… -
Financial Services Regulatory
Bank of Canada publishes guidance for registration under the Retail Payment Activities Act
As the November 1 – 15, 2024 window for registration of payment services providers (“PSPs”) approaches, the Bank of Canada (the “Bank”) has published guidance for PSPs determining: (i) whether the…
Featured Work
-
Mergers and Acquisitions
Amp Energy’s Innovative $350 Million Cross-Jurisdictional Credit Facility
Goodmans LLP acted for Amp Solar Group in connection with Amp Energy’s innovative $350 million cross-jurisdictional credit facility with a consortium of leading institutional investors including…
News & Events
-
- 06:30 PM Financial Services Regulatory
Francesca Guolo at Joint Staff Notice 23-329 on Short Selling in Canada
On the 8th of December 2022, The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) published a Joint Staff Notice 23-329 on Short Selling…