Canadian banks and insurers must limit their exposure to crypto assets to a small fraction of their capital under new interim rules from the country’s financial regulator.
Financial firms need to notify the Office of the Superintendent of Financial Institutions if their gross exposure to type 2 crypto assets -- which, under the regulator’s definition, would likely encompass most cryptocurrencies -- exceeds 1% of their Tier 1 capital, the regulator said Thursday.
Firms also need to notify OSFI if their total net short positions on those assets exceed 0.1% of Tier 1 capital. The rules are effective in the second quarter of 2023.
The interim rules represent the first significant framework for how Canadian financial institutions should treat cryptocurrencies, which are largely unregulated in the country. OSFI said it would update the approach to reflect future developments -- including the government’s legislative review of the topic, guidance from the Basel Committee on Banking...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...