Canada's CIRO Introduces New Rules for Cryptocurrency Custody Management
# Canada’s Investment Watchdog Implements Crypto Custody Rules to Prevent Future Failures
The Canadian Investment Regulatory Organization (CIRO) has introduced crucial new regulations regarding cryptocurrency custody. This move aims to mitigate risks related to digital asset management following instances like the QuadrigaCX scandal. The announcement was made to enhance the security of investor assets in a rapidly evolving crypto landscape.
The implementation of these rules, revealed recently, mandates stricter governance over how cryptocurrency assets are handled by trading platforms. CIRO emphasized the critical need for these regulations due to the persistent risks associated with crypto custody, especially in light of previous failures in the sector. "Custody is one of the most critical points of risk in the crypto ecosystem," stated Alexandra Williams, CIRO's senior vice president of strategy, innovation and stakeholder protection. This reflects a strong commitment to safeguarding investor interests.
CIRO noted that the framework for custody responsibilities was developed in consultation with various crypto-asset trading platforms and their custodians. A spokesperson for CIRO highlighted that "Many of the expectations in the framework were developed in close consultation with [crypto-asset trading platforms] and their custodians and reflect practices already in place." This collaborative approach aims to ensure that the regulations not only provide protection but are also practical for the firms involved.
This report is for informational purposes only and is not financial advice.