Crypto banks: Canada joins the U.S. and European authorities in explaining how its supervised entities can engage with crypto.
Canada’s Office of the Superintendent of Financial Institutions (OSFI), the nation’s primary bank and insurance company regulator, directed entities under its supervision to limit how much exposure they have to cryptocurrencies under interim guidance published Thursday.
According to the guidance, OSFI categorizes cryptos as either Group 1 or Group 2 assets. Group 1 represents traditional assets that confer rights and obligations. Anything else is a Group 2 asset. Regulated entities need to notify OSFI if their total gross positions exceed 1% of their capital and if their total net short positions exceed 0.1% of their capital.
South Africa’s Central Bank Greenlights Financial Institutions to Serve Crypto Clients
“The scope of this advisory is limited to the capital and liquidity treatment of an FRFI’s exposures to crypto assets. The advisory does not address other issues, including whether an FRFI is permitted under the Bank Act, Insurance Companies Act, or Trust and Loan Companies Act to issue any particular crypto asset, or to acquire or hold a controlling or substantial investment in entities that engage in this activity,” the guidance said. “This advisory sets out OSFI’s expectations as to when FRFIs should notify their lead supervisor if they intend to have exposures to crypto assets.”
If an entity does want to conduct other crypto-related activities, it needs to contact its supervisor at OSFI and share information as needed, the regulator said.
Thursday’s publication marks the first major federal crypto rules for banks issued by a Canadian regulator. It comes the same week the U.S. Federal Reserve and the European Central Bank published similar guidance for regulated entities under their respective purviews.
FTX’s money isn’t insured, FDIC says
Like the OSFI’s guidance, the Fed and the ECB both directed supervised entities to notify the regulators in writing if the banks wished to engage with crypto.
South African financial institutions will now be allowed to deal with funds linked to digital assets and shouldn’t indiscriminately block all crypto clients, the country’s central bank said.
Banks in the country “may act as a conduit for funds” tied to crypto asset service providers and “may play a role in customers wishing to purchase” or “receive payouts in fiat currency” in their bank accounts for the sale of crypto, the South African Reserve Bank (SARB) said in new guidelines published this week.
South African Reserve Bank encourages friendly behavior with crypto
The guidance was released after some local banks previously moved to shut down accounts tied to crypto exchanges, citing risk exposures. In the published document, the SARB said it was aware that certain banks in the country have blocked clients with links to crypto. It added that although thorough risk assessment is necessary, the “wholesale termination of client relationships” poses a threat to financial integrity.
“Risk assessment does not necessarily imply that institutions should seek to avoid risk entirely,” the SARB said.
In June 2021, some banks in South Africa also blocked customers from using their credit and debit cards to purchase crypto on foreign exchanges, while the central bank warned existing regulations didn’t allow “for cross-border or foreign exchange transfers for the explicit purpose of purchasing crypto assets.”
https://fortunly.com › banking › best-crypto-friendly-b
Aug 12, 2022 — BankProv – Best for Crypto Businesses ; Wirex – Best Support for Multiple Cryptocurrencies ; Revolut – Best for Crypto Investments ; Ally Bank –
https://www.banks.com › Investing
Crypto banks are cryptocurrency banking and investment applications that allow users to easily and securely buy, sell, and hold digital assets. Unlike
https://www.vast.bank › crypto-banking
Vast Bank is the first nationally chartered U.S. bank that allows you to buy, sell, and hold cryptocurrency assets directly with your bank account.
https://www.nerdwallet.com › Banking
Jul 1, 2022 — Crypto banking, at its most basic, can refer to managing digital currency at a financial technology firm or financial services provider. These
https://www.coindesk.com › policy › 2022/08/15 › us-f.
6 days ago — The central bank will create a three-tiered system for evaluating whether a financial institution should have access.
https://www.wsj.com › articles › they-thought-crypto-b.
Jul 23, 2022 — Crypto firms such as Celsius and Voyager pitched themselves as good alternatives to traditional lenders. Jack Wang lost hundreds of
https://www.kraken.com › en-us › bank
What products will the crypto bank offer? Our bank charter allows us to launch digital-first traditional and crypto banking products, with cryptocurrencies
https://decrypt.co › federal-reserve-releases-new-guideli
5 days ago — The announcement could make it possible for American crypto banks to perform both crypto and traditional banking functions.
https://www.business2community.com › cryptocurrency
Mar 24, 2022 — How Do Crypto Banks Work? The term crypto bank is somewhat subjective, as it can refer to a number of different services. First and foremost,
Crypto Bank pursues the naturally induced popularization of the blockchain by adding the payment function to connect the blockchain ecosystem and the daily life
Silvergate Bank is the leading bank for innovative businesses in fintech and cryptocurrency. Based in San Diego, Silvergate has served innovators for 25+
Crypto Bank is a Blockchain and AI based innovative FinTech solution, enabling the banked and unbanked to transition into a crypto and fiat lifestyle with
Role of Token: UTILITY
Token Ticker: CBT
Token Type: BEP20
Platform: Planned to be Listed on all Major Exc
https://bankprov.com › cryptocurrency-banking
BankProv offers fully insured USD deposit banking for crypto businesses, crypto-backed lending options and crypto-friendly banking solutions.
https://www.guru99.com › best-crypto-friendly-banks
Aug 10, 2022 — Crypto-friendly banks are forward-looking financial entities that accept cryptocurrency as medium of monetary trade.
https://www.bloomberg.com › opinion › articles › crypt
Jun 29, 2022 — Celsius Network LLC CEO Alex Mashinsky built his cryptocurrency lender into a giant on a pitch that it was less risky than a bank with better
CBDCs. Implement a scalable, secure, and sustainable Central Bank Digital Currency that meets the high security standards of Central Banks. Tokenize
https://advisory.kpmg.us › articles › banking-blueprint-
How banks compete in the digital world has forever changed due to growing market acceptance of cryptoassets, the rapid advancement of cryptocurrency
https://play.google.com › store › apps › details › id=cry.
Vast Crypto Banking: Crypto is better with a bank. We are recognized as one of the simplest and safest ways to buy and manage cryptocurrency, while offering