According to a recent announcement, Canada’s Office of the Superintendent of Financial Institutions (OSFI) is looking for input on the disclosure requirements for regional banks and insurers that deal with cryptocurrency.
The Basel Committee on Banking Supervision (BCBS), an international body that sets standards, is conducting another consultation on the same topic that complements this one.
“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,” the OSFI said.
The Canadian regulator is interested in knowing which specific technical elements of the BCBS requirements need to be modified to take into account local circumstances and important factors in order to guarantee “proportionality of disclosures.”
The BCBS has proposed a maximum risk weight of 1250% for volatile assets like bitcoin and stated that banks are required to disclose any exposure to cryptocurrency. Until January 31, 2024, the public may provide OSFI with feedback on the requirements.