🇨🇦 Canada Strengthens Crypto Security with New Tiered Custody Rules
Canada has officially introduced a tiered custody framework for crypto assets, setting stricter standards for insurance, audits, and liability. This move aims to protect investors and prevent incidents like the QuadrigaCX collapse, ensuring that crypto holdings are safer and more transparent.
The new regulations categorize custodians based on their size and risk profile, requiring higher levels of accountability and safeguards for larger operations. This is a major step toward institutional confidence in the Canadian crypto market and signals a maturing regulatory landscape for digital assets.
🔹 Key Takeaways:
Tiered custody system ensures tailored regulations for different custodian sizes.
Mandatory insurance and regular audits to protect users.
Increased liability measures for crypto custodians to prevent mismanagement.
This framework positions Canada as a leader in secure crypto regulation, paving the way for safer adoption and institutional participation.