The Financial Services Regulatory Authority of Ontario (FSRA) is proposing guidance that clarifies when trust corporations, including crypto custodians, need to register with FSRA. This guidance is designed to better protect Ontario consumers and help to address “regulatory gaps” with respect to trust corporations holding people’s crypto assets.
The proposed guidance sets out:
- the roles and responsibilities of provincial and federal regulators with respect to trust corporations, which includes crypto custodians
- factors that FSRA will consider when determining if a corporation needs to register with FSRA under the Loan and Trust Corporation Act (LTCA)
- FSRA’s approach to registering trust corporations
Crypto custodians that meet the definition of a trust corporation under the LTCA must be registered with FSRA. Unregistered loan and trust corporations, including those that are crypto custodians, are banned from offering their services in Ontario as trustees or bailees of customers’ assets.
The consultation period is now open and will close on October 10, 2023.
- Consultation on Regulatory Responsibilities for Trust Corporations, including Crypto Custodians, in Ontario
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.
Learn more at www.fsrao.ca.
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