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
Anti-Money Laundering Obligations for Factors, Cheque Cashers, and Financing/Leasing Entities; Declaration and Record Keeping Requirements for Traders
Recent amendments to regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the “PCMLTFA”) introduce anti-money laundering compliance obligations for factors, cheque… -
Financial Services Regulatory
FINTRAC Advisory Concerning Financial Transactions Related to High-Risk Countries Identified by the FATF
On November 18, 2024, the Financial Transactions and Reports Analysis Centre (FINTRAC) issued an updated advisory (the “Advisory”) concerning financial transactions related to countries identified by… -
Banking and Financial Services
OSFI Releases Annual Report For Fiscal Year 2023 – 2024
On October 15, 2024, the Office of the Superintendent of Financial Institutions (OSFI) published its annual report for the fiscal year from April 1, 2023 to March 31, 2024 (the “Annual Report”), which… -
Capital Markets
Canadian Securities Administrators Further Extend Compliance Deadline in Interim Approach to Value-Referenced Crypto Assets
On September 26, 2024, the CSA provided a further update for crypto asset trading platforms (CTPs) that are registered, or that have provided a pre-registration undertaking (PRU), on the interim… -
Financial Services Regulatory
Summer’s Over – It’s Time to Consider Your RPAA Registration
Not only has the summer flown by, but Halloween is six weeks away. That means payment service providers (PSPs) have six weeks to prepare for the November 1st opening of the two-week window for… -
Structured Finance and Derivatives
Derivatives Business Conduct Rule Coming into Force this Month; CSA Publishes FAQs
The Canadian Securities Administrators (CSA) recently published CSA Staff Notice 93-302 Frequently Asked Questions About National Instrument 93-101 Derivatives: Business Conduct (FAQs), which…
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…