🚨 CANADA JUST GAVE TOKENIZED BANK MONEY A BIG REGULATORY BOOST
Canada’s banking regulator OSFI has clarified that tokenized deposits are not legally distinct from traditional bank deposits. The key point: the technology used to represent or transfer a deposit does not change its legal nature.
That means blockchain-based deposits can fit within the existing banking framework rather than automatically being treated as a completely new financial product.
For the crypto and digital-finance industry, this is an important signal. It shows regulators are increasingly focusing on what a financial product actually is, instead of simply judging it by the technology behind it.
However, banks still have to follow existing legal, technology, cybersecurity and third-party risk requirements, and OSFI expects them to consult supervisors before launching novel products.
Could tokenized deposits become the bridge between traditional banking and blockchain finance?
#CanadaOSFISaysTokenizedDepositsEqualTraditionalDeposits
Canada’s banking regulator OSFI has clarified that tokenized deposits are not legally distinct from traditional bank deposits. The key point: the technology used to represent or transfer a deposit does not change its legal nature.
That means blockchain-based deposits can fit within the existing banking framework rather than automatically being treated as a completely new financial product.
For the crypto and digital-finance industry, this is an important signal. It shows regulators are increasingly focusing on what a financial product actually is, instead of simply judging it by the technology behind it.
However, banks still have to follow existing legal, technology, cybersecurity and third-party risk requirements, and OSFI expects them to consult supervisors before launching novel products.
Could tokenized deposits become the bridge between traditional banking and blockchain finance?
#CanadaOSFISaysTokenizedDepositsEqualTraditionalDeposits
