Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

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4. Results: Answers
Trends and predictions
How would you describe the current fintech landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

Answer ... Canada’s developed financial services sector will likely continue to incentivise many fintech innovations. In particular, Canada has seen strong growth in businesses involving cryptocurrency, artificial intelligence and digital payments. Canada’s government has set ambitious innovation goals, with several governmental programmes being created to encourage growth in this sector.

New developments are expected in the form of updated regulatory regimes that will better address the rapid technological innovation seen in the fintech space. Further clarity regarding the regulation of cryptoasset trading platforms is anticipated to be provided by securities regulators. The Canadian federal government has confirmed that it plans to introduce legislation to implement a new retail payments oversight framework, which may result in fintechs that are currently unregulated becoming subject to regulation, depending on their business activities. Amendments to the Proceeds of Crime (Money Laundering and Terrorist Financing Regulations, anticipated to come into force on 1 June 2020, will impose obligations on reporting entities with respect to virtual currency transactions.

In early 2019 the federal government released a consultation paper on a review of the merits of open banking, seeking comments from industry stakeholders. While recent elections in Canada have caused progress on this initiative to lag, industry participants are keen to see movement forward.

For more information about this answer please contact: Kelly Samuels from EKB | Edwards, Kenny & Bray LLP