The measure seeks to protect pension funds from the problems faced by the cryptocurrency sector, especially after the collapse of important companies and banks that were associated with the said ecosystem.
- The Canadian government requires pension funds to report exposure to the crypto sector
- They seek to protect residents’ funds from problems associated with the cryptocurrency ecosystem
- They pointed to the collapse of companies and banks linked to the sector
- The local government is taking a tougher stance on digital currencies
In light of the current scenario and in accordance with the applicable legal provisions, the Government of Canada will require duly regulated pension funds to report their exposure to cryptocurrencies to the responsible entity.
The information is outlined in a new budget plan submitted by the Canadian government, where it indicates that pension funds must submit relevant information to the Office of the Superintendent of Financial Institutions (OSFI), in an effort to try to further regulate the cryptocurrency space against the risks posed by volatility.
In this regard, the budget plan provides for the following:
To help protect Canadians’ retirement, Budget 2023 announces that the government will require federally regulated pension funds to disclose the exposure of their crypto assets to OSFI.
According to the plan, the local government will work closely with provinces and territories to discuss aspects related to crypto assets, so that companies provide information about the level of exposure, and it is available to residents so that they can make decisions about it. his capital.
Caution after Crypto Collapse Concerns and measures recently announced by the Canadian government come into place due to the collapse of important companies related to the cryptocurrency sector. Cases such as FTX stand out, where the stock exchange, due to bad practices committed by its key executives, faced liquidity problems that led to its bankruptcy, in addition to those of Silvergate Bank and Signature Bank, and US banks that faced operational and regulatory obligations due to volatility. . of cryptocurrencies.
As CoinDesk broker reveals, some pension funds have already expressed interest in investing in companies in the cryptocurrency sector. They specifically refer to the case of Caisse de Depot et Placement du Quebec, which set aside US$150 million for Celsius Network; Plus the Ontario Teachers’ Retirement Plan, which provided $95 million in FTX.
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In the face of these risks, the Canadian government has commented:
To protect Canadians from the risks that crypto assets bring, there is a clear need for various government orders to take an active role in addressing consumer protection gaps and risks to our financial system.
Note that Canada is listed as a partially crypto-friendly piece of legislation, although it has taken a slightly tougher stance in recent years. However, the position of the Ontario regulators stands out negatively, as they view these assets in a more restrictive light.
Article by Angel Di Matteo / Daily Bitcoin
Image from Unsplash
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