Canada's financial regulator wants to regulate the crypto sector in line with international standards, so it has developed a new approach to the capital and liquidity of cryptoassets.
The Office of the Superintendent of Financial Institutions (OSFI) has established guidelines for banks, credit unions, and other federally regulated depository institutions. These regulations will address the handling rules and risks of crypto deposits.
OSFI spokesperson Peter Rutledge explained that financial institutions need certainty on the matter of crypto asset risks given the increase in fraud in the industry, so the regulator intends to bring clarity to the new rules.
The two drafts of the new guidelines will be discussed by all stakeholders until September 20 and will come into effect in 2025.
According to OSFI, the updated regulatory guidelines will replace the current interim guidelines that were introduced in August 2022.
In June 2023, OSFI adjusted the amount of capital banks are required to hold as a reserve or "stability buffer," increasing it by 50 basis points to 3.5%. The regulator said the change was due to rising borrowing costs and high leverage.
Earlier, it was reported that the U.S. House panel approved the first crypto regulation bill.