Canada’s Office of the Superintendent of Financial Institutions (OSFI) has initiated a consultation period regarding the disclosure requirements for crypto-assets in federally regulated financial institutions. This consultation was anticipated in the 2023 federal budget and is closely linked to a similar inquiry by the Bank for International Settlements (BIS). The Canadian government aims to establish guidelines for banks to safeguard the savings of Canadians and ensure the security of the financial sector. Additionally, federally regulated pension funds will be obligated to disclose their crypto exposure to the OSFI without the need for consultation. Canadian pension funds encountered significant losses in the crypto market in 2022. For instance, the Caisse de Dépôt et Placement du Québec, the second-largest pension fund in Canada, lost 200 million Canadian dollars ($154.7 million) due to the Celsius bankruptcy. Similarly, the Ontario Teachers’ Pension Plan wrote off $95 million in FTX and FTX US investments and declared in April that it would no longer engage with crypto. CPP Investments, Canada’s largest pension fund, terminated all crypto research in December. The Basel Committee on Banking Supervision (BCBS) initiated a consultation on banks’ exposure to crypto assets in October. The OSFI has invited commenters to provide feedback on the BCBS proposals to ensure alignment with the Canadian context. The OSFI’s consultation specifically requests commenters to evaluate and enhance the BCBS disclosure framework. Responses to the consultation are due by January 31, 2024. In September, the OSFI concluded a consultation on liquidity requirements for banks with crypto assets, which was coordinated with a BIS consultation. Overall, these developments reflect Canada’s commitment to regulating the crypto industry and protecting the interests of its citizens and financial institutions.

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Information	Details
Geography	North America
Countries	🇨🇦
Sentiment	neutral
Relevance Score	1
People	None
Companies	CPP Investments, Caisse de Dépôt et Placement du Québec, BIS, Ontario Teachers’ Pension Plan, OSFI
Currencies	canadian pension funds, FintruX, Cantosino.com Profit Pass, Canadian Dollar, celsius bankruptcy
Securities	None