Canada's investment regulatory agency CIRO has launched a new framework for digital asset custody, adopting a tiered, risk-based regulatory model

The Canadian investment regulatory agency CIRO recently released a new digital asset custody framework aimed at strengthening the regulation of cryptocurrency asset custody methods and enhancing investor protection.

This framework draws on lessons learned from past events such as the collapse of QuadrigaCX, focusing on preventing hacking attacks, fraud, weak corporate governance, and bankruptcy risks. According to the guidelines, the new framework establishes a tiered, risk-based custody structure that imposes differentiated regulatory requirements on different custody models while allowing institutions to engage in compliant innovation.

CIRO stated that as custody forms and cybersecurity risks continue to evolve, regulators will continuously update this framework to adapt to new industry developments.