OSFI Releases Advisory On Cryptoasset Exposures

Snapshot

The Office of the Superintendent of Financial Institutions (OSFI) has released an Advisory setting out new rules for deposit taking institutions (DTIs) and insurers when dealing with cryptoasset exposures. The Advisory applies to all federally regulated financial institutions (FRFIs) and will become effective Q2 2023. These rules reflect OSFI's interim approach and will be updated as needed, including to reflect the government's legislative review of the digitalization of money, ongoing work by the Basel Committee on Banking Supervision, and developments in the cryptoasset market.

What Are Cryptoasset Exposures?

Cryptoassets are digital assets that depend primarily on cryptography (secure communication mediums, often using encryption and algorithms) and distributed ledgers (a database that is synchronized and accessible across different sites and geographies by multiple participants) or similar technology.