Canada's New Crypto Custody Rules: A Direct Response to QuadrigaCX Collapse

Canada's primary investment regulator, the Canadian Investment Regulatory Organization (CIRO), has officially introduced new cryptocurrency custody rules for investment firms. These regulations are a direct preventative measure aimed at avoiding a repeat of the QuadrigaCX exchange collapse, which resulted in significant investor losses. The rules mandate that member firms holding crypto assets for clients must ensure segregation of these assets, maintain detailed records, and use qualified custodians. This regulatory move is designed to enhance investor protection and bring greater clarity and security to the digital asset market in Canada. Industry experts view this as a positive step towards legitimizing the crypto sector and building a more robust financial framework.