Regulatory Alerts2025-02-20
Capital and Liquidity Treatment of Crypto-asset Exposures (Banking) – Guideline
OSFI has issued a guideline establishing the regulatory capital and liquidity treatment of crypto-asset exposures for federally regulated banks, trust companies, loan companies, and foreign bank branches. Institutions may apply a simplified approach that deducts all crypto-asset exposures from common equity tier 1 capital, or adopt a comprehensive approach that categorizes assets into four groups based on their technology and stabilization mechanisms. The framework mandates specific credit and market risk capital requirements, liquidity ratio treatments, infrastructure risk add-ons, and ongoing classification assessments to ensure prudent risk management.
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