New rules, which likely include cryptocurrencies, limit exposure to small fraction of their capital
Canada’s Office of the Superintendent of Financial Institutions is limiting how much crypto assets Canadian banks and insurers can hold; they must limit their crypto assets exposure to a small fraction of their capital under new interim rules.
Effective 2nd quarter 2023 financial firms notify the Office of the Superintendent of Financial Institutions if their
- gross exposure to type 2 crypto assets exceeds 1% of their Tier 1 capital
- total net short positions on those assets exceed 0.1% of Tier 1 capital
The interim rules represent the first significant framework for how Canadian financial institutions should treat cryptocurrencies, which are largely unregulated in the country.
Click to read full article by Kevin Orland, Financial Post, Bloomberg LP