Crypto Custody Rules Take Shape As Canada’s Investment Watchdog Acts
Canada's Investment Regulatory Organization (CIRO) has introduced an interim Digital Asset Custody Framework, establishing a four-tier system for crypto custodians based on capital, insurance, and operational safeguards. Tier 1 and 2 custodians can hold up to 100% of client assets, while Tier 3 and 4 face lower caps, with Tier 4 limited to 40%. Platforms holding assets themselves are restricted to 20%. The rules enforce risk diversification, cybersecurity, insurance, and clear accountability for lost assets. These binding measures aim to prevent past failures and require immediate compliance, potentially increasing costs and regulatory oversight for smaller platforms.
bitcoinist02/05 10:35
