OSFI announces interim approach to cryptoassets

Today, the Office of the Superintendent of Financial Institutions (OSFI) announced an interim approach for cryptoassets held by federally regulated financial institutions (FRFIs).

This interim approach builds on the consultative letter OSFI provided in July 2021 and outlines OSFI’s expectation that any currently held cryptoassets are managed prudently as well as sets limits on their use by banks and insurers. It also provides further guidance on how to approach the capital and liquidity treatment of cryptoasset holdings.

OSFI will update this interim approach as needed to reflect developments including:

• the government’s legislative review of the digitalization of money;
• responses to OSFI’s consultation questions;
• the Basel Committee on Banking Supervision’s final guidance on cryptoasset exposures; and
• any related developments in the cryptoasset market, as required.

This interim approach helps ensure that FRFIs adopt sound risk management policies and practices concerning their cryptoasset holdings, helping to safeguard the resiliency and stability of the Canadian financial system.

“Like other financial institutions around the world, some Canadian FRFIs have exposures to cryptoassets, and we have provided this interim approach to help ensure risks in this area are managed prudently and supervised according to the principle of ‘same activity, same risk, same regulation’.”

- Superintendent Peter Routledge​