OSFI defines Cryptoassets as digital assets that depend primarily on cryptography and distributed ledger or similar technology.
Bitcoin and Ethereum are two of the most prominent but includes stablecoins, non-fungible tokens (NFTs), and other distributed ledger platforms such as Cardano and Solana.
OSFI Interim arrangements for the regulatory capital and liquidity treatment of crypto asset exposures
The advisory defines and categorizes crypto-asset exposures, then it outlines DTI (deposit Taking Institutions) credit risk, counterparty credit risk, leverage, market risk, liquidity risk, and foreign bank branch deposit treatments. The capital requirements for insurer crypto asset exposures are then clarified, including collateral recognition, and considerations for foreign insurance branches. The last section defines exposure limits for all FRFIs (Federally Regulated Financial Institutions). Read More
Resources
Financial Stability Oversit Board: Report on Digital Asset Financial Stability Risks and Regulation
OCC: Acting Comptroller Discusses Identifying Crypto Risks Read More
Crypto Assets Primer Read More
Exploring Recent Trends in Custody, Trading & Decentralized Finance by Mitchell Nicholson
The crypto buyers are anonymous. Cash flows are not very transparent. So how do government regulate the industry and tax the industry? Zichen (Linda) Yang.