OSFI consults on disclosure of FRFIs' crypto-asset exposures

Information
Publication type
Letter
Date
Sector
Banks,
Foreign Bank Branches,
Life Insurance and Fraternal Companies,
Property and Casualty Companies,
Trust and Loan Companies
Table of contents

We would like your views on public disclosure of exposures to crypto-assets, as announced in Budget 2023.

As you likely know, public disclosures form an essential part of our regulatory regime. They provide transparency and promote market discipline, thereby enhancing sound risk management.

In mid-October, the Basel Committee on Banking Supervision (BCBS) issued its own consultation on disclosure of crypto-asset exposures for internationally active banks. We are running our consultation in parallel. We intend to combine your feedback with developments coming out of the BCBS. This will help us articulate public disclosure expectations appropriate for banks and insurers in Canada.

We have three key questions for you:

  1. What, if any, technical aspects of the BCBS disclosure tables and templates should be amended for banks and insurers in the Canadian context?
  2. What key considerations should we factor in to ensure proportionality of disclosures?
  3. What other considerations raised by the BCBS consultation should we keep in mind in developing Canadian disclosure expectations?

We would be grateful if you could provide as much elaboration as possible in your responses to these questions.

You are likely aware that we recently consulted on draft guidelines on regulatory capital and liquidity treatment of crypto-asset exposures for banks and insurers. You should know as well that we are aware of and plugged into work by the Financial Stability Board on Crypto-Asset Activities and Markets and Global Stablecoin Arrangements, which include public disclosure recommendations. Our disclosure expectations will take these developments into consideration.

Please share your comments with us by January 31, 2024. You can send them and any questions you may have to Pillar3-Pilier3@osfi-bsif.gc.ca​. We will prepare and publish a ‘what we heard’ report when we issue draft guidelines in 2024.

Sincerely,

Tolga Yalkin
Assistant Superintendent
Regulatory Response Sector