The Canadian financial regulator has launched a consultation on the public disclosure of cryptocurrency assets by federally regulated financial institutions.

The Office of the Superintendent of Financial Institutions (OSFI) said that digital innovation is changing the way the money is managed but poses risks to the financial system. It hopes the disclosures will enhance transparency, comparability of data and market discipline to make the financial system safer.

OFSI will issue guidelines by autumn 2024, with final guidelines taking effect in the final quarter of 2025.

The OSFI's consultation is happening at the same time as another from the Basel Committee on Banking Supervision (BCBS), a global supervisory body which has also sought feedback from internationally active banks on the disclosure of crypto-asset exposures.

“Public disclosures are crucial for managing risks in banks and insurers, especially regarding crypto-asset exposures,” said Peter Routledge, superintendent of financial institutions. “We welcome feedback to tailor disclosure expectations to the Canadian context.”

Earlier this week, the Council of Canadian Innovators (CCI) issued an open letter urging Canada’s government to “embrace” Open Banking. It pointed to recent findings by the Canada Competition Bureau that the Canadian economy is “a less competitive place than it was twenty years ago”, adding that a lack of innovation “stifles innovation, drives up prices, and leads to stagnation”.

---