Canada Crypto Update: New Bank Rules, Rate Hike and a Crackdown on Crypto ATMs

Canada's new OSFI crypto rules for banks took effect on 1 November 2026, changing how crypto exposures and hedges count toward bank capital, with a 5% Group 2 exposure cap. The Bank of Canada raised its benchmark rate to 2.50% on 28 October, its first hike since July 2023. A new bill, S-8, introduced on 3 November, would restrict cash payments of C$10,000 or more and tighten oversight of money-service businesses and cryptocurrency ATMs, including criminalising unlicensed crypto ATMs. Kraken is pursuing more licences in Canada, including CIRO membership by April 2027 and a Bank of Canada payments licence. On 6 November, the US sanctioned eight Canadian money-exchange firms over Iran-linked crypto transfers — this targets those firms, not ordinary crypto users, and is not expected to move crypto prices on its own. This is market news, not investment advice.