Canada’s investment watchdog rolls out crypto custody rules to avoid another QuadrigaCX

CIRO’s new digital asset custody framework takes effect immediately, raising standards for crypto trading platforms as regulators push to reduce investor risk. What to know : Canada’s investment regulator CIRO has introduced a new Digital Asset Custody Framework to tighten rules on how crypto assets are held, citing past failures such as the QuadrigaCX collapse. The guidance establishes a tiered, risk-based structure for custody that aims to let firms innovate while strengthening investor protections against hacking, fraud, weak governance and insolvency. CIRO says it will proactively update the framework as new custody and cyber risks emerge, reflecting Canada’s broader cautious approach to crypto regulation and investor protection.