On Feb. 20, C-OSFI published capital treatment of crypto exposures.
C-OSFI published guideline on Capital and Liquidity Treatment of Crypto-asset Exposures for banks (federal CUs), bank holding companies, trust and loan companies.
Provided guideline letter, summary of stakeholder comments and C-OSFI responses.
Follows C-OSFI 2023 proposed capital standards on crypto-asset exposures, #180537.
Also issued guideline on capital treatment of crypto exposure for insurance, #244612.
Assistant Superintendent Radiskovic delivered remarks on consult of draft guidelines.
Final Guideline
Set expectations for exposures to crypto-assets; defined capital, liquidity standards.
Incorporated Basel Committee standards for crypto-asset exposures, see #156853.
Simplified capital and liquidity treatment available to institutions with limited crypto-asset exposures; otherwise use comprehensive approach to categorize exposures.
Described how minimum risk-based capital requirements for credit risk and market risk applied to Group 1 crypto-asset exposures; as well as add-on for infrastructure risk.
Minimum risk-based capital requirements for credit risk and market risk to Group 2.
Also, minimum capital requirements for credit valuation adjustment risk, counterparty credit risk, operational risk; liquidity risk requirements; large exposure requirements.
Effectiveness
Guidelines come into effect in Q4 2025 (Nov. 2025/Jan. 2026), at which time they will replace Interim advisory on regulatory treatment of crypto-asset exposures, #146047.
