Starting November 1, non-bank businesses offering payment services in Canada must register with the Bank of Canada under a new regulatory regime aimed at protecting consumers. The Bank estimates the regime will apply to around 3,000 companies, including fintechs and other firms involved in online payments.
The move follows global trends in countries like the U.S. and U.K. to regulate non-bank payment providers. However, determining which businesses need to register is complex, with exemptions for incidental activities and internal transactions. Firms that miss the deadline but act quickly may avoid penalties, according to Bank of Canada officials.
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