Canada asks pension funds to disclose crypto-asset exposure

The new 2023 budget aims to protect Canadians against risk in the crypto industry.

The government of Canada has asked for regulated pension funds to disclose their crypto asset exposure to the Office of the Superintendent of Financial Institutions (OSFI).

A new budget plan for 2023 has been announced to help protect Canadians’ retirement over the following year.

As Ottawa tightens its regulations amid the turbulent crypto industry, the federal government will ensure Canadians are aware of the potential exposure to crypto assets.

Working alongside provinces and territories, the government will “discuss crypto-asset or related activities disclosures by the country's largest pension plans”.

To protect Canadians’ savings and the “security of the financial sector” the 2023 budget said that the OSFI will consult with “federally regulated financial institutions to divulge guidelines for publicly disclosing their exposure to crypto-assets”, ensuring “financial institutions provide Canadians with fair and equitable access to relief measures”.

The move to become vigilant over customers’ funds follows the collapse of several high-profile firms such as FTX and the recent fall of US Silvergate and Signature Bank.

Many pension funds in the country have seen a negative effect when investing in crypto.

One of Canada’s largest pension plans, the Ontario Teachers' Pension Plan, invested nearly $250bn in assets under management, however last year declared it would need to write off $95m invested in FTX.

Additionally, Quebec-based pension fund Caisse de Depot et Placement du Quebec announced a loss of $150m after investing in Celsius Network.

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Written by Isabella Aslam

Reporter

Isabella is an experienced writer in B2B and B2C journalism. Alongside crypto, Isabella writes and discusses the topics of relationships and psychology. Isabella holds a first-class degree in music journalism and often interviews electronic artists and DJs.

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