OTTAWA, ON, Nov. 20, 2023 /CNW/ – Today, the Office of the Superintendent of Financial Institutions (OSFI) launched a consultation on the public disclosure of crypto-asset exposures by federally regulated financial institutions (FRFIs) in Canada.
Digital innovation is transforming how we transact, manage money, and view value but poses risks to our financial system. Recent crypto events underscore risks of unregulated financial innovation. Public disclosures enhance transparency, comparability of data, and market discipline for a safer financial system.
The Basel Committee on Banking Supervision (BCBS) is seeking feedback from internationally active banks through its own consultation. This consultation allows industry to provide feedback on BCBS proposals, ensuring guidelines align with the Canadian context.
OSFI will issue draft guidelines on public disclosures by fall 2024. Final guidelines will be communicated by winter 2025, taking effect in Q4 2025. Share your consultation at [email protected] until January 31, 2024.
“Public disclosures are crucial for managing risks in banks and insurers, especially regarding crypto-asset exposures. We welcome feedback to tailor disclosure expectations to the Canadian context.”
– Peter Routledge, Superintendent of Financial Institutions
- A non-attributed summary of comments received, along with OSFI’s responses, will be published with the draft guidelines in 2024.
- OSFI completed a public consultation on draft guidelines on the regulatory capital and liquidity treatment of crypto-asset exposures for banks and insurers in September 2023.
- The Government of Canada Federal Budget 2023 announced that OSFI will consult FRFIs on guidelines for publicly disclosing their exposure to crypto-assets.
SOURCE Office of the Superintendent of Financial Institutions
Featured image: depositphotos © grejak
