My understanding is that they are legal now, but the City of Toronto is meeting in August to discuss possible new regulations. It would likely take several months (at least) to implement the regulations even if they were approved.
The issue is that people are buying condo units (which are in short supply), not living in them and renting them out through Airbnb and VRBO. Neighbouring condo owners who live in their units aren't happy about this (there have been issues with renters partying, being loud/obnoxious, damaging property).
Here are a couple of articles:
https://www.google.com/amp/s/www.cbc.ca/amp/1.5121557
https://www.google.com/amp/s/www.the...t-at-year.html
We've stayed at two different Airbnbs in Toronto in the past year. Both were condos. We had no issues with either one, but we were advised not to interact with/ask questions of the concierge.
ETA - was posting at the same time as mom2binsd