CIRO introduces temporary cryptoasset storage rules, tightening requirements for exchanges in Canada
The Canadian Investment Regulatory Organization (CIRO) has announced the implementation of new temporary cryptocurrency custody rules aimed at improving security and transparency standards for cryptocurrency exchanges operating in the country. The measures are effective immediately and are designed to protect the interests of investors amid growing volumes of digital assets and new market risks.The interim rules require all registered crypto platforms to use only approved custodians that meet strict custody and auditing standards. Platforms are also required to disclose details of their asset custody practices, including segregation of client funds and regular checks on their status. According to the CIRO, these measures will minimize the risks of loss or unauthorized access to client funds.According to the CIRO, the number of registered crypto platforms in Canada has increased by 35% over the past 12 months, and the total amount of digital assets stored has exceeded CAD 4 billion. As such, the regulator emphasizes the importance of implementing additional controls prior to the development of permanent regulations.The new requirements are expected to increase investor confidence and provide a higher level of protection in the fast-growing digital financial services sector. The CIRO will continue to monitor the market and plans to consult with industry participants to create permanent standards for the safekeeping of cryptoassets.
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