Crypto firms have encountered varying stances from regulators globally. Some nations have shown openness to them, while others have attempted to curtail the expansion of the cryptocurrency sector. Canada recently unveiled stricter rules for crypto asset firms.
The Canadian securities regulators gave unregistered crypto trading platforms operating in the country a 30-day deadline. The regulators asked these firms to commit to pre-registration undertakings.
In one of the most recent updates, regulators in Canada disclosed capital plans for banks and insurers that hold crypto assets.
Canada’s open consultation to address evolving risks
The latest consultation launched by the Office of the Superintendent of Financial Institutions is open until September 20, 2023. OSFI is considering updates to its capital and liquidity approach concerning crypto-assets in light of the evolving risk landscape and international developments.
In a recent announcement, OSFI introduced two draft guidelines aimed at federally regulated deposit-taking institutions and insurers. The move comes after the Basel Committee on Banking Supervision issued fresh banking standards for crypto-asset exposures in December 2022. In response, OSFI has taken the initiative to craft more comprehensive guidance tailored to the Canadian context.
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Peter Routledge, Superintendent of Financial Institutions, said, “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.”
As part of the regulatory process, the two draft guidelines will undergo a period of public consultation, where stakeholders and the general public will have the opportunity to provide feedback and insights on the proposed changes.