The Financial Post reports in its Friday edition that Canadian banks must limit their exposure to crypto assets to a small fraction of their capital under new interim rules from the country's financial regulator. A Bloomberg dispatch to the Post reports that financial firms need to notify the Office of the Superintendent of Financial Institutions if their gross exposure to type 2 crypto assets exceeds 1 per cent of their Tier 1 capital, the regulator said Thursday. Firms also need to notify OSFI if their total net short positions on those assets exceed 0.1 per cent of Tier 1 capital. The rules are effective in the second quarter of 2023. The interim rules represent the first significant framework for how Canadian financial institutions should treat crypto currencies, which are largely unregulated in the country. OSFI said it would update the approach to reflect future developments -- including the government's legislative review of the topic, guidance from the Basel Committee on Banking Supervision and any related developments in the crypto market. Regulatory uncertainty has kept large global banks from engaging with crypto assets directly by trading them or holding them on their balance sheets.