Canada Introduces New Crypto Custody Rules to Protect Investors After QuadrigaCX Collapse

TheNewsCrypto2026-02-04 tarihinde yayınlandı2026-02-04 tarihinde güncellendi

Özet

Following the QuadrigaCX collapse in 2019, which resulted in the loss of $123 million in customer funds, Canada’s Investment Regulatory Organization (CIRO) has introduced new crypto custody rules for exchanges. The regulations aim to protect investors by enforcing stronger custody arrangements, improved internal controls, and clear separation of client assets from company funds. The framework adopts a risk-based approach, requiring higher-risk firms to meet stricter standards while allowing flexibility for lower-risk platforms. CIRO will actively update the rules as new threats emerge and has the authority to investigate misconduct and impose penalties. The move reflects Canada’s protective regulatory stance, bringing crypto custody under existing securities laws.

The Canadian Investment Regulatory Organization (CIRO) has announced that Canada has introduced new crypto custody rules for the exchanges to reduce the risk of investor losses and prevent failures, as the QuadrigaCX collapse happened in 2019.

This move immediately takes effect after the direct response to the past crypto failure, like the QuadrigaCX collapse. QuadrigaCX was one of the canada’s largest crypto exchanges. After its CEO died, it has missed about $123 million of customer funds. Investigations later found that this was caused by its poor controls, weak governance, and serious custody failures.

What CIRO’S new crypto rules do

CIRO’S Digital Asset Custody Framework used a risk-based approach, which sets clear standards for protecting investors from hacking, fraud, weak controls, and poor governance. The firms which higher risk activities should meet the stronger custody standards, and the lower-risk firms get more flexibility but still need the protections.

After the new rules, crypto platforms in Canada should use stronger custody arrangements and improve the internal controls and oversight with clear separation of customer assets from the company funds. CIRO says many platforms are already following a similar structure, and any transitions to the new rules will be handled case by case without disrupting the firms suddenly.

Canada’s approach towards crypto custody

CIRO says that it will actively monitor the new risk, and the regulators will update the new rules if they seem to have any new custody threats and repeated problems across the firms. This shows that the framework still needs to be fixed and will evolve as per the crypto market changes.

Canada has taken a protective approach towards crypto regulations and is bringing crypto custody platforms under the existing securities laws. CIRO has the authority to investigate the misconduct, impose fines, and suspend the firms, which shows a strong focus on the custody and increased attention on stablecoins.

Highlighted Crypto News:

Ethereum Eyes Frame Transactions as Hegota Headliner

İlgili Sorular

QWhat event prompted Canada to introduce new crypto custody rules?

AThe collapse of QuadrigaCX in 2019, which resulted in the loss of approximately $123 million in customer funds due to poor controls, weak governance, and custody failures.

QWhich organization announced Canada's new crypto custody rules?

AThe Canadian Investment Regulatory Organization (CIRO) announced the new crypto custody rules.

QWhat is the main approach of CIRO's Digital Asset Custody Framework?

AIt uses a risk-based approach, setting clear standards for protecting investors from hacking, fraud, weak controls, and poor governance, with higher-risk firms facing stronger custody requirements.

QHow do the new rules require crypto platforms to handle customer assets?

APlatforms must use stronger custody arrangements with clear separation of customer assets from company funds and improve internal controls and oversight.

QWhat regulatory powers does CIRO have under the new framework?

ACIRO has the authority to investigate misconduct, impose fines, and suspend firms, showing a strong focus on custody and increased attention on stablecoins.

İlgili Okumalar

Nobel Laureate Becomes New Employee at Anthropic

Nobel laureate and AlphaFold lead John Jumper has left Google DeepMind after nearly nine years to join AI company Anthropic. Jumper, who co-won the 2024 Nobel Prize in Chemistry for his work on the protein-structure-predicting AI, led the AlphaFold project from its early stages, revolutionizing structural biology by predicting hundreds of millions of protein structures. His departure follows closely that of Transformer co-inventor Noam Shazeer, who recently left Google for OpenAI, marking a significant talent drain for the tech giant. Analysts suggest top AI researchers are seeking environments where individual impact can more directly shape a company's trajectory. Anthropic's hiring of Jumper signals a major push into AI for life sciences. The company recently acquired biotech firm Coefficient Bio and is building wet labs, aiming to drastically accelerate drug discovery and biomedical research. This move aligns with a broader trend, as OpenAI and Google DeepMind (via Isomorphic Labs) are also heavily investing in AI-driven biology and healthcare. The stage is now set for intensified competition among AI leaders to redefine life sciences through artificial intelligence.

marsbit3 dk önce

Nobel Laureate Becomes New Employee at Anthropic

marsbit3 dk önce

Strategy’s STRC Drop Shows The Risk Behind Bitcoin-Linked Credit Products

Strategy Inc.'s (formerly MicroStrategy) preferred stock, STRC, traded sharply below its $100 reference value during recent market stress, hitting an intraday low of $82.53. The company's CEO framed the drop as a "leverage flush"—forced selling by investors using borrowed money—rather than a fundamental default event. This distinction highlights that the selloff resulted from market mechanics and liquidity pressures, not missed payments by the issuer. The episode underscores the specific risks embedded in Bitcoin-linked credit products, which can behave differently from holding Bitcoin or common stock. As Bitcoin treasury strategies become more complex and financialized, instruments like preferred shares introduce additional layers of risk, including leverage, liquidity constraints, and sensitivity to Bitcoin's volatility. The STRC movement serves as a warning about the fragility of these structures in stressed markets, even when the underlying company remains solvent.

bitcoinist6 saat önce

Strategy’s STRC Drop Shows The Risk Behind Bitcoin-Linked Credit Products

bitcoinist6 saat önce

Australia’s High Court Hands ASIC Major Win In Block Earner Crypto Yield Case

Australia's High Court unanimously ruled in favor of the securities regulator ASIC in a case against crypto platform Block Earner. The court determined that Block Earner's historical 'Earner' fixed-yield product was a financial product and a derivative, requiring an Australian Financial Services Licence. This landmark decision establishes that crypto yield products promising structured returns can fall under existing financial services law, regardless of their digital asset nature. While the specific product is no longer offered, the ruling sets a significant precedent for how similar crypto investment and derivative-like offerings will be regulated in Australia. The case now returns to a lower court to determine penalties against Block Earner.

bitcoinist9 saat önce

Australia’s High Court Hands ASIC Major Win In Block Earner Crypto Yield Case

bitcoinist9 saat önce

Blockchain.com Expands Tokenized Stock Access Through Ondo Finance

Blockchain.com has expanded its partnership with Ondo Finance to integrate tokenized U.S. stocks and ETFs into its wallet ecosystem. This move allows eligible, primarily non-U.S., users to access traditional financial assets through a familiar crypto-native interface, blending real-world asset exposure with existing crypto holdings like stablecoins and DeFi tools. Ondo Finance, a key player in tokenizing assets like Treasuries and equities, gains a significant distribution channel through Blockchain.com's large user base. The partnership highlights the industry trend of making tokenized assets as accessible as ordinary crypto tokens, targeting global audiences who may face barriers using traditional brokerage services. While the tokenized real-world asset (RWA) market grows increasingly competitive, questions remain around custody, regulation, and market structure. Blockchain.com and Ondo are betting that seamless wallet integration can address these challenges and drive broader adoption.

bitcoinist11 saat önce

Blockchain.com Expands Tokenized Stock Access Through Ondo Finance

bitcoinist11 saat önce

CPU Makes a Comeback to the Table, A $170 Billion "Power Seizure" Drama Begins

A new era is dawning for the server CPU (Central Processing Unit), driven by the shift from AI model training to large-scale reasoning and the rise of Agentic AI. This article explores how the CPU is reclaiming a central role in the AI data center. For years, the focus has been on the GPU (Graphics Processing Unit) for AI training. However, as AI moves to the inference and Agent phase—where tasks involve complex, multi-step reasoning, tool calls, and data management—the workload balance is flipping. Studies show CPUs now handle over 70% of the workload in Agentic AI, up from 10-30% in training. This is because Agent tasks generate massive intermediate data (KV Cache) that exceeds GPU memory, forcing it to be offloaded to the CPU's larger, more scalable memory pools. This increased importance is translating into market changes. Major players are taking note: NVIDIA launched its first standalone CPU line, Vera, based on ARM architecture and optimized for Agent performance. AMD doubled its server CPU market forecast to over $1200 billion by 2030. Analyst reports project the total server CPU market could reach $1700 billion by 2030, with AI-driven demand being a primary driver. Furthermore, the classic ratio of CPUs to GPUs in AI servers is rapidly changing, converging from 1:8 toward 1:1 for Agent deployments. This surge in demand has led to a rare industry-wide price increase of 10-15% for server CPUs from Intel and AMD, breaking a decade-long trend of "more performance for the same price." Demand is bifurcating into high-core-count CPUs for in-rack GPU support and moderate-core CPUs for standalone Agent task orchestration. In China, this global trend presents an opportunity for domestic CPU manufacturers like Hygon (海光信息) and Huawei Kunpeng, who are bolstered by both growing AI infrastructure needs and national policies promoting technological self-reliance ("xin chuang"). The maturity of their software ecosystems is also accelerating, evidenced by faster adaptation to new AI models. In conclusion, the narrative is shifting from a GPU-centric view to one where CPU-GPU synergy is critical. The CPU is no longer a peripheral component but a performance-defining bottleneck and a key growth driver in the AI hardware stack, opening a massive new market estimated in the hundreds of billions of dollars.

marsbit11 saat önce

CPU Makes a Comeback to the Table, A $170 Billion "Power Seizure" Drama Begins

marsbit11 saat önce

İşlemler

Spot

Futures