CIRO Issues Guidance on Digital Asset Custody for Crypto-Asset Trading Platforms

Demonstrates continued evolution of Canada’s approach to crypto-asset regulation

TORONTO, Feb. 3, 2026 /CNW/ – The Canadian Investment Regulatory Organization (CIRO) published a new Digital Asset Custody Framework, setting clear expectations for the custody of digital assets by Dealer Members operating Crypto-Asset Trading Platforms (CTPs) in Canada.

Developed in collaboration with industry stakeholders and informed by regulatory developments in other jurisdictions, the framework reflects the continued evolution of CIRO’s approach to crypto-asset regulation, and addresses the technological, operational, and legal risks unique to digital assets, which cover crypto assets and tokenized assets, including stablecoins.

“Custody is one of the most critical points of risk in the crypto ecosystem,” said Alexandra Williams, Senior-Vice President, Strategy, Innovation and Stakeholder Protection. “This new framework gives firms the flexibility to operate and innovate responsibly. It reflects what we heard from the industry and demonstrates CIRO’s commitment to being an agile and trusted regulator.”

The framework enhances expectations for how client assets are held, including through third-party custodians, and builds on existing custody requirements, all of which will be imposed through terms and conditions of membership. This approach allows CIRO to respond quickly to risks highlighted by past failures in the crypto sector, where contributions of losses, such as hacking, fraud, inadequate governance and insolvency, lead to investor vulnerability and losses.

A key feature of the framework is its tiered, risk-based structure, which provides firms with flexibility to diversify their crypto custody arrangements while maintaining strong safeguards for investor protection. Reviewing and enhancing custody and segregation requirements for crypto assets held by CIRO Members operating CTPs was identified as one of CIRO’s public regulatory priorities for 2026.

The guidance note is effective immediately.

About CIRO

The Canadian Investment Regulatory Organization (CIRO) is the pan-Canadian self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

SOURCE Canadian Investment Regulatory Organization (CIRO)