The Globe and Mail reports in its Thursday edition that the Bank of Canada is urging financial technology companies to start preparing for a new regulatory regime that will soon cover businesses providing services such as digital wallets and electronic payment systems. The Globe's Mark Rendell writes that since last year the BOC has been tasked with overseeing the retail payments industry. This includes "fintech" and "paytech" companies, from small start-ups to large firms such as Moneris and PayPal -- but not banks, credit unions or insurance firms, which are already overseen by regulators.
While the new regulatory regime is not expected to come into force until 2025, the BOC is encouraging companies to weigh in on the rules before they are finalized.
There are at least 2,500 digital-payment service providers in Canada, said BOC director of retail payments Ron Morrow. He added: "I'm not sure how many of them know that this regime exists and is coming. Now is the time to start paying attention, because now is the opportunity to shape what's coming. If you don't pay attention, and you don't speak up with any problems you see with this regime, you will bear the consequences of that when it comes to life."
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