🇨🇦 Canada Finalizes New Crypto Capital Rules for Banks
Canada’s banking regulator, OSFI, has finalized updated capital rules for 2027 that provide targeted relief for banks holding digital assets. The new guidelines allow institutions to treat multiple regulated exchanges as a single entity when calculating delta risk for qualifying Group 2a crypto exposures.
This change addresses a mismatch where banks using market-neutral hedging strategies were forced to overstate their risk. By treating regulated venues as one, positions in the same asset with the same maturity date can now receive full capital recognition, reducing the amount of cash banks must hold against these trades.
#Canada #CryptoRegulation #Banking #OSFI
Canada’s banking regulator, OSFI, has finalized updated capital rules for 2027 that provide targeted relief for banks holding digital assets. The new guidelines allow institutions to treat multiple regulated exchanges as a single entity when calculating delta risk for qualifying Group 2a crypto exposures.
This change addresses a mismatch where banks using market-neutral hedging strategies were forced to overstate their risk. By treating regulated venues as one, positions in the same asset with the same maturity date can now receive full capital recognition, reducing the amount of cash banks must hold against these trades.
#Canada #CryptoRegulation #Banking #OSFI