Canada proposes new capital rules for banks who hold crypto

Canada's Office of the Superintendent of Financial Institutions introduced new capital plans for banks and insurers in the country who hold cryptocurrencies, according to a release dated Wednesday. In a consultation open until September 20, the OSFI proposed guidelines that reflect what was put forth in December by the Basel Committee on Banking Supervision, it noted. “Deposit-taking institutions and insurers need clarity on how to treat crypto-asset exposures when it comes to capital and liquidity," Superintendent of Financial Institutions Peter Routledge said in a statement. "We look forward to giving them this clarity through these new guidelines that reflect industry input and international standards.” The regulator described the proposed guidelines as a "simplified approach and a comprehensive approach depending on the extent of an institution’s exposure to crypto-assets." Like its advanced-economy peers, Canada has been increasingly scrutinizing the crypto space, a move spurred by an industry-wide downturn and a raft of bankruptcies. Binance, the world's largest crypto exchange by trading volume, in May exited the Canadian market due to the country's stiffer rules. More on crypto and Canada: Crypto exchange Kraken pledges to comply with tighter rules in Canada Crypto exchanges in Canada said to face stricter rules later in February Canada's OSC probes Binance over whether crypto exchange tried to skirt rules