Canada's Financial Regulator: Deposit Tokens Legally Equivalent to Traditional Deposits

Canada's Office of the Superintendent of Financial Institutions (OSFI) stated on October 10 (local time) that digital deposits, including deposit tokens, are legally no different from traditional deposits. OSFI explained that 'the legal nature of a financial product or service is determined by the nature of the product itself, not the technology used to implement it,' adding that existing financial institution laws and regulations apply directly to deposit tokens. According to the regulator, financial institutions must consult with OSFI supervisors before launching new products and comply with guidelines for managing technological, cyber, and third-party risks.