Canada's OSFI Says Tokenized Deposits Are Legally Equivalent to Traditional Deposits

Canada's banking regulator said tokenized deposits are not legally different from traditional deposits and that the underlying technology used in a financial product or service does not determine its legal nature. According to ChainCatcher, the Office of the Superintendent of Financial Institutions said financial institutions can offer tokenized deposit services under existing financial regulatory laws without additional rules. The regulator said financial institutions and third parties acting on their behalf must ensure their activities comply with applicable laws and regulations. It also said firms should contact the OSFI supervisor responsible for oversight before launching new products or services and recommended seeking legal advice before going live. OSFI oversees nearly 350 financial institutions and 1,200 pension plans.