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Canada Tightens Crypto Custody Rules to Mitigate Hacks and Fraud
Canada Tightens Crypto Custody Rules to Mitigate Hacks and Fraud
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BTCCSquare news:
Canada’s Investment Regulatory Organization (CIRO) has introduced interim custody standards for digital assets, aiming to curb losses from security breaches and operational failures. The framework establishes tiered requirements based on custodians’ capital strength and risk profiles, responding to high-profile collapses like QuadrigaCX in 2019.
The rules mandate stricter governance, insurance coverage, and audit protocols while preserving room for innovation. Custodians will now face segmented oversight—a departure from one-size-fits-all regulation—with compliance enforced through membership terms as longer-term policies develop.
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