Canadian Regulators Call for Feedback on Crypto Reporting Guidelines
Canadian regulators launched a consultation today asking for feedback in regards to public disclosure of crypto assets from federally regulated financial Canadian Regulators Call for Feedback on Crypto Reporting Guidelines...
- Canadian regulators have launched a consultation to gather feedback on the public disclosure of crypto assets from federally regulated financial institutions (FRFIs).
- The Office of the Superintendent of Financial Institutions (OSFI) believes that digital innovation in the crypto space poses risks to the financial system and that public disclosures can enhance transparency and market discipline.
- The consultation by OSFI runs parallel to a similar one launched by the Basel Committee on Banking Supervision, which aims to require banks and financial institutions to provide quantitative and qualitative data on their crypto assets.
- The launch of the consultation comes amidst increased regulation in the United States following the collapse of enterprises like Signature Bank and FTX, with FTX founder Sam Bankman-Fried being found guilty of fraud charges.
- The Canadian federal budget highlights the potential threats of crypto-assets to financial well-being, national security, and the global financial system.
- The North American crypto market has brought in an estimated $1.2 trillion between July 2022 and July 2023, with Coinbase recently launching in Canada.
- The OSFI's guidelines on public disclosure are expected to be launched by fall 2024, and feedback can be provided until January 31st, 2024.
The article highlights the need for public disclosure of crypto assets and increased regulation in the crypto space. It also mentions the risks and potential threats associated with unregulated financial innovation. Overall, the sentiment is cautious and emphasizes the importance of transparency and accountability.