Canadian Investment Regulatory Authority Introduces New Regulations for Cryptocurrency Asset Custody

2026-02-04 05:51:02

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Deep Tide TechFlow News, on February 4th, according to The Block, the Canadian Investment Regulatory Organization (CIRO) released a digital asset custody framework aimed at preventing losses caused by hacking, fraud, and governance deficiencies. The framework classifies crypto custody institutions into four levels, determining the proportion of client assets they can hold—top-tier custodians can hold 100% of client assets, the lowest level is limited to 40%, and the internal custody limit for dealer members is 20%.

The framework also requires the establishment of sound governance policies covering key management, cybersecurity, incident response, and third-party risks, while mandating insurance, independent audits, and security compliance reporting. CIRO stated that the framework adopts a risk-based and proportional approach, aiming to balance investor protection with market innovation and competition, and is an important measure learned from the 2019 QuadrigaCX collapse.

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