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Canada’s CIRO Implements Tiered Crypto Custody Framework to Mitigate Risk
Canada’s CIRO Implements Tiered Crypto Custody Framework to Mitigate Risk
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BTCCSquare news:
Canada's Investment Regulatory Organization (CIRO) has introduced a four-tier custody framework for digital assets, imposing strict capital and insurance requirements on platforms holding client crypto. Tier 1 and 2 custodians may store 100% of assets, while lower tiers face diminishing caps—a structural MOVE to prevent concentration risk after past exchange failures.
The interim rules mandate rigorous cybersecurity protocols, third-party audits, and explicit liability clauses for asset loss. Though temporary, these binding measures take immediate effect through CIRO membership agreements as regulators draft permanent legislation.
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