Due to the tightening of legal requirements for digital assets, in the budget plan for 2023, the government will require federal pension funds to disclose information about their crypto assets to OSFI. This decision is designed to protect Canadian pensioners. The Federal Government also plans to work in this direction with the provinces.
According to experts, such a step will inform Canadians about the potential risk of their pensions. This measure became apparent after the bankruptcy of the FTX crypto exchange and the recent collapse of Silvergate and Signature banks.
Some pension funds of the country have previously faced the sad consequences of investing in digital assets. Canadian pension giant Caisse last year wrote off a bid of $150 million in connection with the bankruptcy of crypto lender Celsius. One of Canada’s largest Ontario Teachers’ Pension Funds (OTPP) has written off FTX investments worth $95 million.
OSFI plans to consult with financial institutions that are regulated at the federal level on the principle of disclosure of information about the exposure to crypto assets. Experts note that it is possible to protect Canadian citizens from the consequences of crypto risks only at the state level with the help of special orders. Thus, the country plans to fill legislative gaps in the protection of the rights of pensioners and minimize the risks of the entire financial system of the country.
Recall that in February of this year, Canada tightened the requirements for cryptocurrency exchanges operating in the country.