The Canadian government stated in a new 2023 budget that federally regulated pension plans in the country must notify the Workplace of the Superintendent of Monetary Establishments (OSFI) about their exposure to crypto property.
According to the report, the federal government is attempting to protect Canadians’ retirement benefits following high-profile bankruptcies in the financial world affecting pension systems. It comprises the FTX cryptocurrency alternatives and Celsius Community’s present failures.
Simon Dixon, CEO of BnkToTheFuture, addressed the new regulatory requirement on Twitter. He stated that the Canadian Pension Funds have “Crypto PTSD” [post-traumatic stress disorder] from investing in the Sam Bankman-Fried-led FTX exchange after suffering greatly from Celsius’s bankruptcy.
Notably, the Ontario Academics’ Pension Plan wrote down the entire $95 million in FTX financing, effectively reducing the value of the grant to zero. Previously, other Canadian pension funds, such as the Quebec-based Caisse de dépôt et placement du Québec (CDPQ), wiped off a $150 million investment in Celsius Community, signaling that it did not expect to recover that investment.
After months of court proceedings, Celsius recently announced that it had agreed with the Custody Ad Hoc Group and the UCC on a Settlement. The agreement will allow eligible account holders to opt in and reclaim most of their digital property in the Custody Program. Those who opt-in will eventually reclaim 72.5% of their digital property.
