Canadian Regulator Seeks Feedback on Disclosure Rules for Bank Crypto Exposures
Canada's Office of the Superintendent of Financial Institutions (OSFI) has asked for public feedback on disclosure requirements for banks and insurers dealing with cryptocurrency. This is parallel to another consultation by the Basel Committee on Banking Supervision (BCBS), with OSFI planning to combine feedback from both to outline disclosure expectations for banks and insurers in Canada. Specifically, OSFI seeks to understand how BCBS requirements can be adjusted for local context, and how to maintain proportionate disclosures. Currently, the BCBS mandates banks to disclose their exposure to cryptocurrencies and suggested a risk weight of 1250% for volatile assets like Bitcoin. The deadline for public feedback to OSFI is January 31, 2024.
