Canada eases capital rules for banks’ hedged crypto positions from 2027

Canada’s Office of the Superintendent of Financial Institutions has finalized 2027 guidance that eases some capital rules for banks’ hedged crypto positions. Under the new guidance, banks holding long and short positions in the same cryptocurrency with the same maturity across multiple regulated exchanges may offset those positions for capital purposes if they meet certain conditions. Previously, positions had to be calculated separately by exchange, forcing banks to hold capital at levels above their actual risk. The measure applies only to “Group 2a” crypto exposures that meet hedge requirements, while assets on unregulated exchanges or those that fail to meet the requirements are excluded. The new guidance will take effect in November 2026 or January 2027, depending on a bank’s fiscal year.