Backgrounder: Crypto-asset disclosure consultation

Context

Budget 2023 announced that the Office of the Superintendent of Financial Institutions (OSFI) will consult federally regulated financial institutions (FRFIs) on guidelines for publicly disclosing their exposure to crypto-assets. In November 2023, OSFI sought feedback from the public to help inform guidance on the matter. Our consultation ran parallel to the Basel Committee on Banking Supervision's (BCBS) consultation on the disclosure of crypto-asset exposures for internationally active banks. The consultation on the draft amendments to Pillar 3 Guidelines is responsive to the feedback OSFI received on crypto-asset disclosure expectations.

OSFI's expectations of financial institutions

OSFI is consulting on draft amendments to the Pillar 3 Disclosure Guidelines for banks. In addition, we expect to publish relevant crypto-asset regulatory data of all institutions.

Reason for the consultation

Digital innovation is transforming how we transact, manage money, and think about value. But it also presents risks to our financial system. To protect Canadians from the risks that come with crypto-assets, OSFI clarifies expectations for FRFIs on publicly disclosing their exposures to these assets. Public disclosures form an essential part of OSFI's regulatory regime. They provide enhanced transparency, comparability of data, and market discipline for a safer financial system.

The consultation on the draft amendments to Pillar 3 will provide industry with an opportunity to provide feedback on OSFI's crypto-asset disclosure expectations.

Effective date

Crypto-asset disclosures for banks become effective for the fiscal Q1 2026 reporting period, in alignment with the BCBS standard. OSFI's disclosure of regulatory data filed by all institutions on crypto-assets is expected to begin as early 2026.