Canada’s Office of the Superintendent of Financial Institutions (OSFI) has opened a session interval on crypto-asset disclosure requirements for federally regulated monetary establishments. The session was foreseen within the 2023 federal funds, however its timing is tied to the same inquiry initiated by the Bank for International Settlements (BIS).
The Canadian authorities acknowledged in March that it could draw up crypto exposure tips for banks “to help protect Canadians’ savings and the security of our financial sector.” The provision is present in Section 5.4 of the funds, titled “Combatting Financial Crime.” The funds additionally acknowledged that federally regulated pension funds will likely be required to reveal their crypto exposure to the OSFI — no session is required.
[Have your say]
We’re gathering enter on public disclosure of #crypto-asset exposures by banks and insurers in #Canada.For extra particulars and to share your feedback, go to: https://t.co/ldCdzW56PP pic.twitter.com/7O4ECxAEle
— Superintendent of Financial Institutions (@OSFICanada) November 20, 2023
Canadian pension funds had a painful expertise with crypto in 2022. The Caisse de Dépôt et Placement du Québec, Canada’s second-largest pension fund, lost 200 million Canadian dollars ($154.7 million) within the Celsius chapter. The Ontario Teachers’ Pension Plan wrote off $95 million in FTX and FTX US investments in November 2022 and acknowledged in April that it was swearing off crypto for good. CPP Investments, Canada’s largest pension fund, canceled all crypto analysis in December.
Related: Canadian regulatory body clarifies stablecoin rules for exchanges and issuers
The Basel Committee on Banking Supervision (BCBS) announced its consultation on banks’ crypto asset exposure in October. Commenters can “provide feedback on BCBS proposals, ensuring guidelines align with the Canadian context,” the OSFI stated. In its session, the OSFI particularly asks for commenters to appraise and improve the BCBS disclosure framework. Responses are due by Jan. 31, 2024.
The OSFI concluded a consultation on liquidity requirements for banks with crypto belongings in September. It, too, was coordinated with a BIS consultation.
