Amid growing tensions between the United States and Canada, Canada’s financial sector must be stronger and more resilient than ever. However, Canada’s financial sector is not working hard enough for Canadians, with high banking fees and limited financing options for consumers and businesses.
To overcome these challenges, the organization emphasizes that all levels of government have a vital role to play in strengthening the financial sector. In its submission to the Ontario government’s 2025 Budget consultations, Fintechs Canada makes two key recommendations:
Advocate for the extension of open banking requirements to all investment accounts and securities registrants
“The first iteration of Canada’s Consumer-Driven Banking Act encompasses both registered and non-registered investment accounts,” the submission notes. However, because online banking portals vary by financial institution, the classification of these accounts remains unclear. To avoid ambiguity, Fintechs Canada recommends that the government “explicitly state in regulations the investment accounts that are included in the scope of the Act.”
To do so, the organization is urging the Ontario government, along with the Ontario Securities Commission (OSC), to actively advocate for extending open banking requirements to all securities registrants and investment accounts.
Develop a coordinated regulatory framework for fiat-backed stablecoins
The submission highlights the growing use of fiat-backed stablecoins as a payment method, emphasizing their stability, speed, and accessibility. This, combined with their ability to enable fast settlement, 24/7 access to funds, and instant cross-border processing, makes them “a reliable payment option that eliminates the delays, costs, and risks associated with traditional bank wires and transfers.”
Fintechs Canada argues that stablecoin regulation should follow the principle of “same activity, same risks, same regulation.” Since many fiat-backed stablecoins share characteristics with existing financial services, the organization contends that they should be regulated under current financial laws, such as the Retail Payment Activities Act (RPAA) and the Payments Clearing and Settlement Act (PCSA). It calls on the Ontario government to work with the OSC, the Canadian Securities Administrators (CSA), and the Department of Finance to develop a coordinated regulatory framework.
To view Fintechs Canada’s submission, click here.
