Office of the Superintendent of Financial Institutions
OSFI is issuing the attached advisory,
Interim arrangements for the regulatory capital and liquidity treatment of cryptoasset exposures, which aims to ensure that federally regulated financial institutions (FRFIs) apply a conservative treatment and set prudent limits in relation to their cryptoasset exposures.
This interim guidance follows OSFI’s
consultative letter dated July 5, 2021 and is effective at the beginning of a FRFI’s fiscal Q2 2023 reporting period, with earlier adoption encouraged. Through this interim arrangement, OSFI expects that FRFIs adopt a cautious approach to using cryptoassets and remain vigilant regarding the risks involved. Questions related to these interim arrangements should be sent to Kora Duch at
In addition, consultation questions have been included in the Annex to this letter to inform future updates to this guidance. Feedback should be sent to OSFI by email at
Consultations@osfi-bsif.gc.ca by October 14, 2022.
On June 30, 2022, the Basel Committee on Banking Supervision (BCBS) issued a second consultation paper (https://www.bis.org/bcbs/publ/d533.htm) on the prudential treatment of cryptoasset exposures. OSFI encourages all FRFIs to provide comments directly to the BCBS at
https://www.bis.org/bcbs/commentupload.htm by the comment deadline of September 30, 2022.
OSFI is committed to updating these interim arrangements as needed to reflect ongoing developments in four key areas: the Department of Finance legislative review focused on the digitalization of money and maintaining financial sector stability and security; a review of the domestic consultative feedback received on the Annex questions; the release of the BCBS’s final guidance on the prudential treatment of cryptoasset exposures; and, finally, ongoing developments in the cryptoasset market.
To help inform future updates to the advisory, OSFI is seeking feedback on the following questions: