Canada’s New Crypto Rules Change the Math for Banks

OSFI finalized revisions to Canada’s bank crypto rules in September, setting November 1, 2026, as the start for institutions with October 31 year-ends, including the six largest banks; banks with December 31 year-ends start January 1, 2027. The changes let matching long and short positions in the same crypto-asset with the same maturity fully offset for price-risk capital even when held on different regulated exchanges. Qualifying derivatives client-clearing exposures are excluded from the 5% Group 2 exposure limit, which caps measured crypto exposure at 5% of Net Tier 1 capital. The cap and collateral restrictions remain; breaching the cap puts all Group 2 exposure into the harshest Group 2b treatment, with a 1,250% risk weight.