The Office of the Superintendent of Financial Institutions (OSFI), the Financial Consumer Agency of Canada (FCAC) and the Canada Deposit Insurance Corporation (CDIC) issued a 
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Canadian Federal Regulators Issue Joint Statement on Crypto Assets | OSFI Publishes Digital Asset Roadmap
McCarthy Tetrault | Ana Badour | Nov 17, 2022
The Office of the Superintendent of Financial Institutions (OSFI), the Financial Consumer Agency of Canada (FCAC) and the Canada Deposit Insurance Corporation (CDIC) issued a joint statement to all regulated entities (regulated entities) engaging in crypto asset activities or crypto-related service:
- In Scope:
- Including but not limited to, “acting as crypto-asset custodians; maintaining stablecoin reserves; issuing crypto and other digital assets; sub-custodial arrangements for crypto as well as dealing in any derivatives/securities financing transactions (SFTs), or
- other assets referencing crypto; acting as market makers or exchange or redemption agents in regards to crypto-assets;
- participating in blockchain and distributed ledger-based settlement or payment systems, including performing node functions; as well as
- related activities such as finder activities and lending in regards to crypto-assets.
- The Canadian federal financial regulators note that cryptocurrencies, stablecoin arrangements and decentralized finance applications “require prudent and thoughtful oversight and regulatory approaches, since innovations occur both within and outside of the mainstream financial system, sometimes both simultaneously”, and endorse the Financial Stability Board’s principle of “same activity, same risk, same regulation”.
See: OSFI Consultation on Prudential Treatment of Cryptoasset Exposures
- OSFI published a Roadmap for an Evolving Digital Asset Landscape and invited feedback from both regulated and non-regulated entities.
- The roadmap includes the launch of a regulatory sandbox in the first half of 2023 to enable experimentation of new technologies in a safe environment. Organizations are invited to express interest in participating in the sandbox by January 19, 2023, including indicating which type of products or services the organization is interested in.
- OSFI also indicates that it expects in 2023 to finalize its risk management expectations for digital currencies including stablecoins, and that it intends, starting in 2024, to expand the regulatory sandbox (to potentially include new participants and/or products) and to explore further the topics of crypto custody, lending, issuance, staking, derivatives and decentralized finance, as well as payment innovation and advanced artificial intelligence/ machine learning.
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