- The federal government will collaborate with provinces and territories.
- It would compel regulated pension plans to reveal their exposure to crypto-assets to OSFI.
As Ottawa tightens its regulatory monitoring of the volatile crypto sector. The Canadian federal government said that federally regulated pension plans in the country would be required to report their exposure to crypto assets to the Office of the Superintendent of Financial Institutions (OSFI).
Under the proposed 2023 budget proposal. The government explains that in order to “help protect Canadians’ retirements,” it would compel federally regulated pension plans to reveal their exposure to crypto-assets to OSFI.
To make sure Canadians are informed of their pension plan’s possible exposure to crypto assets. The federal government will collaborate with provinces and territories. In order to address crypto-asset or related activity declarations by the country’s top pension plans. As detailed in the fiscal year 2023 budget.
Resolving Consumer Protection Gaps
The decision comes after numerous high-profile bankruptcies revealed the significant volatility investors confront in the market. Including the FTX exchange and the recent collapse of crypto-friendly U.S. lenders Silvergate Bank and Signature Bank.
Some national pension funds have already learned the hard way about investing in cryptocurrency. The Caisse de Depot et Placement du Québec, a pension fund located in Quebec, said last year that it had lost US$150 million on a stake in Celsius Network.
Similarly, Canada’s biggest pension fund, Ontario Teachers’ Pension Plan, which manages about US$250 billion in assets, said in December 2022 that it will write down its entire US$95 million stake in FTX.
There is a “clear need” for various tiers of government to take an active role in resolving consumer protection gaps and threats to the financial system in order to safeguard Canadians from the hazards associated with crypto-assets, the budget states.
