OSFI launches consultation on regulatory capital and liquidity treatment of crypto-asset exposures

OTTAWA, ON, July 26, 2023 /CNW/ - The Office of the Superintendent of Financial Institutions (OSFI) is proposing changes to its capital and liquidity approach to crypto-assets to reflect an evolving risk environment and international developments.

Today, OSFI announced two draft guidelines, one for federally regulated deposit-taking institutions and another for insurers, on the regulatory capital treatment of crypto-asset exposures.

The Basel Committee on Banking Supervision released new banking standards for crypto-asset exposures in December 2022. In response, OSFI has taken the opportunity to draft this more detailed guidance for Canada.

The two draft guidelines will be open for public consultation until September 20, 2023. Comments can be sent to [email protected]

These guidelines will replace the interim advisory on the regulatory treatment of crypto-asset exposures, published in August 2022, when they come into effect in early 2025.

"Deposit-taking institutions and insurers need clarity on how to treat crypto-asset exposures when it comes to capital and liquidity. We look forward to giving them this clarity through these new guidelines that reflect industry input and international standards."
- Peter Routledge, Superintendent of Financial Institutions

• The new guidelines propose a simplified approach and a comprehensive approach depending on the extent of an institution's exposure to crypto-assets.
• Both guidelines detail four classifications of crypto-assets and the capital treatment for each.
• The banking guideline reflects the December 2022 BCBS banking standard. The insurance guideline incorporates the relevant parts of the BCBS standard with adjustments to meet the specific context of the insurance industry.
• The August 2022 interim advisory remains in effect for now.
  
  

• OSFI guideline on the regulatory capital and liquidity treatment of crypto-asset exposures (Banking) (osfi-bsif.gc.ca)
• OSFI guideline on the regulatory capital treatment of crypto-asset exposures (Insurance) (osfi-bsif.gc.ca)
• OSFI invites input on proposed new guidelines for the regulatory capital and liquidity treatment of crypto-asset exposures (osfi-bsif.gc.ca)

SOURCE Office of the Superintendent of Financial Institutions