Canadian Regulator Issues Rules For Banks’ Handling Of Cryptocurrency

The Public Affairs Office of the Superintendent of Financial Institutions has announced an interim approach to crypto assets held by federally regulated financial institutions and will reduce contact with cryptocurrencies.

The Superintendent of Canadian Financial Institutions, which is responsible for the supervision and regulation of banks, insurance, trust and loan companies, says that there will be a set of crypto asset classification conditions that the new rules will comply with. and establish limits on its use by banks and insurance companies.

Certain conditions will include supervision of entities that perform the purpose of reimbursement, transfer or liquidation of crypto assets in order to mitigate risk in crypto asset exposures held by banks.

“The scope of this advice is limited to the capital and liquidity treatment of FRFI’s exposure to crypto assets. The notice does not address other issues, including any particular crypto asset under the Banking Act, the Insurance Companies Act, or the Debt and Trust Companies Act.” Whether FRFI is permitted to issue, or to acquire or hold majority investment. Entities that participate in this activity”.

Canadian crypto assets to be pooled

According to the statement, Canadian crypto assets will be monitored in two groups, Group 1 taking into account established classification conditions and Group 2 subject to more conservative prudential treatment.

“This notice sets out the requirements of OSFI as to when FRFI must notify their primary supervisor if they intend to hold exposure to crypto assets.” Orientation indicated.

Latest development comes weeks later Basel committee to publish second document Consultation on the Prudential Treatment of Banks’ Crypto Asset Exposure, which states that “Canada will monitor key developments based on the overall performance of the crypto market.”

Canada joins in regulating other countries Business crypto

Canada Approved Bitcoin Exchange Traded Fund (ETF)But the Securities Administrators of Canada and the Investment Industry Regulatory Organization of Canada have been tough on the industry that requires trading platforms. Business In crypto and dealers Canada Registering with Local Provincial RegulatorsJoining other countries.

Canada adopted a registration scheme for trading platforms offering custody services to Canadian clients. Several companies have registered under the new rules with guidance on advertising Marketing,

The Ontario Securities Commission has also aggressively enforced these rules against unregistered foreign trading platforms.

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