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The Office of the Director of Financial Institutions Public Affairs has announced temporary measures against cryptoassets held by federally regulated financial institutions and will reduce exposure to cryptocurrencies.
The head of Canada’s financial institution, which oversees banking, insurance, trust and lending companies, said the new rules will comply with a set of cryptoasset classification criteria. And limit the use of banks and insurance companies.
Certain conditions will include oversight of entities performing cryptoasset repayment, transfer or liquidation purposes in order to reduce the risk of cryptoassets held by banks.
“The scope of the proposal is limited to the capital and liquidity treatment of FRFI exposures to crypto assets. The notice does not address other issues, including any specific issues under the Banking Act, the Insurance Companies Act or the Debt and Trust Companies Act Crypto assets.” Whether FRFIs are allowed to issue, acquire or hold majority investments. Entities participating in this activity”.
Will pool Canadian crypto assets
According to the statement, Canadian crypto assets will be monitored in two groups, the first taking into account the established classification criteria and the second being treated with a more conservative prudence.
“This notice sets out OSFI’s requirements that if an FRFI intends to hold exposure to cryptoassets, when it must notify its principal director.” Directions.
Update in a few weeks Basel Committee publishes second document The advisory on prudential treatment of banks’ exposure to crypto assets states that “Canada will monitor key developments based on the overall performance of the crypto market.”
Canada joins regulation of other countries Business cryptocurrency
Canadian Approved Bitcoin Exchange Traded Funds (ETFs)But the Canadian Securities Administrators and the Canadian Investment Industry Regulatory Organization have been taking a tough stance on industries that need trading platforms. Business in cryptocurrencies and resellers Canada is registered with the local provincial regulatorJoin other countries.
Canada has adopted a registration program for trading platforms that offer custodial services to Canadian clients.Several companies have registered under the new rules with advertising guidance Marketing,
The Ontario Securities Commission also actively enforces these rules against unregistered foreign trading platforms.
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