Canada Enacted Cryptocurrency Asset Custody Rules

Canada's investment regulator CIRO has introduced a new Digital Asset Custody Framework to learn from past failures like the QuadrigaCX collapse. This framework aims to tighten the rules regarding how crypto assets are held.

The announced guidance establishes a risk-based system aimed at fostering innovation while creating a stronger structure against risks such as hacking, fraud, poor management, and bankruptcy to protect investors.

CIRO stated that it will proactively update the framework as new custody and cyber risks emerge. This reflects Canada's cautious approach to crypto regulation and investor protection.