The existing regulatory framework governing financial services in Canada — both federally and provincially — cannot keep pace with the rapidly evolving technological developments in the sector. While the existing regulations are imperfect, fintechs must comply with the same banking, consumer protection and privacy laws as their traditional financial services counterparts.

To avoid the considerable time and resources that may be required for future compliance with these regulatory requirements, FinTechs should understand and comply with the various applicable regulatory regimes from the initial stages of a company’s lifecycle, before any technology related aspects of the business are hard-wired.

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