Canada Strengthens Digital Asset Protection with New Custody Rules

BoredRiceBall · 2026-02-14T22:14:13+00:00

The Canadian CIRO has implemented new digital asset custody standards to protect investors, establishing strict oversight and management requirements on trading platforms, aiming to rebuild trust after the QuadrigaCX collapse.

BoredRiceBall

2026-02-14 22:14:13

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Canada’s securities regulator, the CIRO, has established a new regulatory framework for digital asset custody on trading platforms. The initiative was designed to strengthen investor protection mechanisms by introducing stricter oversight and asset safeguarding requirements.

Stricter Safeguarding Requirements

The new custody rules took effect immediately, marking a significant step toward greater security in the Canadian cryptocurrency ecosystem. The regulatory framework sets standards for the storage and management of digital assets that platforms must comply with to operate legally in the country.

A Step After the Trust Crisis

This regulation is part of a broader strategy to rebuild trust in the digital asset market. The context dates back to the abrupt closure of QuadrigaCX, a Canadian platform that faced a financial collapse in 2019, resulting in significant losses for thousands of investors. Canada’s new measures aim to prevent similar scenarios by imposing more robust internal controls and transparency requirements in custody operations.

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