osfi

The Office of the Superintendent of Financial Institutions (OSFI) in Canada stated on Thursday that tokenized deposits are legally indistinguishable from traditional deposits, and noted that the underlying technology used in financial products or services does not determine their legal nature.OSFI indicated that financial institutions can conduct tokenized deposit business under existing financial regulatory laws without the need to establish additional regulatory provisions. Financial institutions and third parties acting on their behalf must ensure that their operations comply with applicable laws and regulations. OSFI requires financial institutions to communicate in advance with the OSFI supervisor responsible for regulation before launching new products or services, and recommends seeking legal advice prior to going live. The agency oversees nearly 350 financial institutions and 1,200 pension plans.

According to a statement released by the Office of the Superintendent of Financial Institutions (OSFI) in Canada, OSFI clarifies its technology-neutral stance, stating that tokenized and other digital deposits are legally indistinguishable from traditional deposits, and the underlying technology of financial products or services does not determine their legal nature.OSFI requires financial institutions to ensure that innovative activities (including activities carried out by third parties on their behalf) comply with relevant laws and regulations, and must adhere to guidelines such as B-13 Technology and Cyber Risk Management and B-10 Third Party Risk Management. Financial institutions must communicate with OSFI supervisors in advance before launching any new products or services and seek legal advice when necessary.

ChainCatcher news, the Canadian national government stated in the new 2023 budget plan: "To help protect the retirement lives of Canadians, the government will require federally regulated pension funds to disclose their cryptocurrency asset risk exposure to the Office of the Superintendent of Financial Institutions (OSFI)." Additionally, OSFI will consult with federally regulated financial institutions on guidelines for publicly disclosing their cryptocurrency asset exposure to help protect "the savings of Canadians and the safety of our financial sector."This move comes after several high-profile bankruptcies, such as those of the FTX exchange, and the recent collapses of cryptocurrency-friendly U.S. banks Silvergate Bank and Signature Bank, which exposed the extreme risks investors face in the industry.Last year, the Quebec-based pension fund Caisse de Depot et Placement du Quebec stated that it had written off a $150 million investment in Celsius Network. The Ontario Teachers' Pension Plan also indicated last year that it had written down its $95 million investment in FTX to zero. (CoinDesk)