Canadian Regulator Seeks Feedback on Disclosure Rules for Bank Crypto Exposures
The country hopes to align local requirements with those proposed by international banking regulators....
- Canada's Office of the Superintendent of Financial Institutions (OSFI) is seeking feedback on disclosure requirements for local banks and insurers exposed to crypto.
- The consultation is being conducted in parallel with a similar one by the Basel Committee on Banking Supervision (BCBS).
- The OSFI aims to combine feedback from the consultation with developments from the BCBS to establish appropriate public disclosure expectations for Canadian banks and insurers.
- The regulator wants to identify technical adjustments to the BCBS requirements to suit the local context and ensure proportionality of disclosures.
- The BCBS has proposed a risk weight of 1250% for volatile assets like bitcoin and requires banks to disclose any exposure to crypto.
- The public can submit comments on the requirements to OSFI until Jan. 31, 2024.
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