The Office of the Superintendent of Financial Institutions has launched a 60-day public consultation on targeted revisions to its Capital and Liquidity Treatment of Crypto-asset Exposures (Banking) Guideline. The main proposed change would allow banks to recognize cross-exchange hedging for Group 2a crypto-assets traded on regulated exchanges of traditional financial assets when calculating capital requirements. OSFI is not proposing changes at this stage to the risk weight for Group 2a crypto-assets or to their eligibility as collateral. The guideline sets out how banks must hold capital and manage liquidity for crypto-asset exposures. OSFI said the revision reflects how crypto-asset markets have developed and is intended to keep capital and liquidity treatment appropriate. It pointed to banks' use of market-neutral strategies, the close price alignment of the same crypto-asset across major regulated exchanges, and the current partial recognition of these hedges, which can overstate risk and lead to higher capital requirements than the underlying risk may warrant. The framework is based on Basel Committee on Banking Supervision standards and has been adapted for the Canadian context. The consultation runs until July 20, 2026. OSFI expects to publish the final guideline in September 2026, with implementation planned for November 1, 2026 for banks with a fiscal year ending October 31 and January 1, 2027 for banks with a fiscal year ending December 31. It will continue monitoring crypto-asset market developments and consider whether further changes are warranted as evidence and international standards evolve.
Office of the Superintendent of Financial Institutions2026-05-21
Office of the Superintendent of Financial Institutions launches consultation on crypto-asset guideline revisions to recognize cross-exchange hedging
The Office of the Superintendent of Financial Institutions has launched a consultation on targeted revisions to its Capital and Liquidity Treatment of Crypto-asset Exposures (Banking) Guideline. The main proposal would permit banks to recognize cross-exchange hedging for Group 2a crypto-assets traded on regulated exchanges when calculating capital requirements, while leaving risk weights and collateral eligibility unchanged. OSFI said the change reflects market developments and aims to better align capital and liquidity treatment with underlying risk, within a framework based on Basel Committee standards adapted for Canada.