Canada’s OSFI consults on crypto asset capital and liquidity treatment

Canada’s 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.

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

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,” said Peter Routledge, superintendent of Financial Institutions for OSFI, in a statement.

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