Answer ... Given the split jurisdiction of federal and provincial regulation, and the fact that it will ultimately be the business activity of a fintech that determines the applicable regulatory framework, fintechs seeking to enter Canada should carefully consider, and obtain qualified advice with respect to, the regulations to which they will ultimately be subject.

Compliance with privacy legislation will be of primary importance, as privacy laws are widely applicable to any fintech which has possession of personal information.

Determining whether securities regulation applies to a fintech’s activities is also of key importance, as securities regulation tends to apply to many facets of fintech business activities, including cryptoassets, roboadvising, peer-to-peer lending, trading activities and forex activities, among others. Where a fintech has an innovative idea that it wishes to test in market, discussions with securities regulators at an early stage will be warranted, as eligibility for regulatory sandbox programmes should be considered.

Finally, if a fintech’s undertakes payment processing activities, registration with the Financial Transactions and Reports Analysis Centre of Canada as a money services business and compliance with anti-money laundering legislation may be required.