Canada Clears Tokenized Bank Deposits Without Creating a New Crypto Rulebook
Canada Clears Tokenized Bank Deposits Without Creating a New Crypto Rulebook
OSFI specifically pointed to its technology and cyber-risk framework, as well as rules governing risks created by third-party service providers.
Banks are also expected to consult their OSFI supervisors before launching novel products or services.
That makes the announcement less of a deregulation move and more of a clarification that existing banking rules can continue to apply even when the underlying infrastructure changes.
Canada Takes a Technology-Neutral Route
The clarification arrives as OSFI is separately updating its framework for banks with crypto-asset exposure.
On Sept. 10, the regulator also published its final 2027 capital and liquidity rules for crypto assets. Those rules, based partly on Basel Committee standards, determine how banks must account for risks associated with different crypto exposures.
The framework is scheduled to take effect in November 2026 or January 2027, depending on an institution's fiscal year.
The two developments point to a broader regulatory approach in Canada: traditional financial products do not necessarily become "crypto" products simply because they are moved onto blockchain infrastructure.
For banks experimenting with programmable payments, tokenized cash, or blockchain settlement, that distinction could be significant.
This article has been published in ccn.com via Yahoo News.
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