03:20 PM EDT, 10/29/2024 (MT Newswires) -- The Bank of Canada is urging thousands of digital payment companies to get on board with a new regulatory regime that starts rolling out this week, warning that it could take a tough line with businesses that fail to sign up, The Globe and Mail is reporting Tuesday.

Starting Nov. 1, it noted, payment service providers (PSPs) will need to register with the central bank, which has been tasked with overseeing the largely unregulated sector. These companies -- which include point-of-sale software providers, payment apps and other "fintech" firms -- will have two weeks to register. The new regulatory regime comes into force next September.

"The integrity of the whole regime depends on PSPs actually registering with us," said Ron Morrow, the Bank of Canada's executive director of payments, supervision and oversight, in an interview.

"It's entirely possible that you could see public enforcement action from the bank relatively early in the new year for those who don't register. I would like to think we're not going to have to take enforcement action. But again, it feels a little naive to think that everything is just going to go swimmingly. We'll see."

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