This invitation-only virtual roundtable examines how Basel III capital standards, as implemented in Canada through OSFI’s Capital and Liquidity Treatment of Crypto-asset Exposures (Banking) Guideline, constrain federally regulated banks from meaningfully engaging with the digital asset sector.

Under the Basel framework and OSFI’s rules, unbacked crypto-assets such as Bitcoin generally fall into Group 2 and attract highly conservative capital treatment, including, for Group 2b exposures, a 1,250% risk weight that can require capital approaching the full value of the position once buffers are applied, while total gross Group 2 exposure is capped (OSFI currently limits it to 5% of Net Tier 1 capital). Combined with OSFI’s capture of both direct and indirect exposures, limited recognition of hedging and collateral, and ongoing conservatism around Group 2a risk weights, these rules make principal holdings, inventory, crypto-collateralized lending, and many balance-sheet services uneconomic for most institutions. The session will convene banks, regulators, and industry to discuss what that capital and liquidity treatment means in practice for account access, credit, custody, payments, and institutional participation, and where further OSFI clarity or risk-sensitive calibration could open a workable path for regulated engagement without weakening prudential standards.