Canada’s Financial Regulator Proposes New Guidelines for Crypto-Asset Capital and Liquidity
The Office of the Superintendent of Financial Institutions (OSFI), Canada’s financial regulator, has initiated the process of seeking public feedback on proposed changes to its approach to crypto-assets’ capital and liquidity.
These draft guidelines aim to align with the evolving risk landscape and international developments, in response to the Basel Committee on Banking Supervision’s recent standards for crypto-asset exposures. The drafts cover regulatory capital treatment for crypto-asset exposures by regulated deposit-taking institutions and insurers.
Public consultation on the guidelines will continue until September 20, 2023, with the new rules expected to be implemented in early 2025. OSFI offers two approaches, a simplified and a comprehensive one, depending on an institution’s exposure to crypto-assets, outlining capital treatments for each of the four classes of crypto assets. In the interim, the Aug. 2022 advisory remains in effect.
Superintendent Peter Routledge emphasizes the importance of providing clarity to deposit-taking institutions and insurers on handling crypto-asset exposures in terms of capital and liquidity.
Clever Robot News Desk 31st July 2023
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