New Custody Framework Addresses Crypto Risks
Canada's investment regulator, CIRO, has introduced a new digital asset custody framework aimed at addressing risks related to asset storage and cybersecurity in the crypto industry. This marks a significant step forward in Canada’s approach to crypto regulation.
Graded Oversight Balancing Innovation and Security
The framework adopts a tiered, risk-based approach designed to support innovation while ensuring strong investor protections. CIRO highlighted past failures like the QuadrigaCX exchange collapse to underscore the importance of guarding against hacking, fraud, weak governance, and insolvency risks.
Adaptive Updates for Future Challenges
CIRO stated that as the digital asset sector evolves, new custody and cyber risks will emerge. The regulator committed to actively updating the framework to maintain its relevance and effectiveness in a rapidly changing environment.
Canada Advances Crypto Regulation
The introduction of this custody framework reflects Canada's growing focus on cryptocurrency oversight. By building a more robust regulatory foundation, the country aims to balance technological progress with investor confidence.