Overview
- The rules introduce a four-tier custodian model in which top-tier firms may hold 100% of client assets while Tier 4 custodians are capped at 40%.
- Crypto trading platforms using internal custody face a 20% cap on client asset value to limit single-point failure risk.
- CIRO will monitor custody and cyber threats and update requirements proactively when early warning signs appear.
- The framework applies immediately to CIRO member trading platforms and was developed with input from custodians and firms, with transition arrangements set case by case.
- The initiative reflects lessons from the QuadrigaCX collapse and fits within Canada’s broader move toward a national digital-asset regime that includes work on stablecoins and greater Bank of Canada oversight.