Regulatory Alerts2025-02-20
Capital Treatment of Crypto-asset Exposures (Insurance) Guideline
OSFI has issued this guideline to establish the regulatory capital treatment for insurers' crypto-asset exposures, effective January 2026. The framework provides simplified and comprehensive approaches that categorize assets into Group 1 (tokenized traditional and value-referenced crypto-assets) and Group 2 (hedging-eligible and other crypto-assets), applying specific capital deductions, credit and market risk factors, and a 5% aggregate exposure limit for Group 2 holdings. Insurers must continuously classify exposures, document compliance with classification and hedging criteria, and promptly notify OSFI of approach selections or limit breaches to maintain prudent capital adequacy.
Share