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

CIRO News Releases

Published February 3rd, 2026

Detected March 12th, 2026

Summary

The Canadian Investment Regulatory Organization (CIRO) has issued new guidance on digital asset custody for Crypto-Asset Trading Platforms (CTPs). The framework establishes clear expectations for Dealer Members operating CTPs, addressing technological, operational, and legal risks associated with digital assets. It enhances existing custody and segregation requirements to protect investors.

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What changed

CIRO has published a new Digital Asset Custody Framework, effective immediately, which sets clear expectations for Dealer Members operating Crypto-Asset Trading Platforms (CTPs) in Canada. This framework addresses the unique risks of digital assets, including crypto assets and tokenized assets, by enhancing requirements for how client assets are held, whether directly or through third-party custodians. It introduces a tiered, risk-based structure to allow for diversification of custody arrangements while maintaining strong investor safeguards, responding to risks highlighted by past failures in the crypto sector.

This guidance imposes new terms and conditions of membership for CTPs, requiring them to review and enhance their custody and segregation practices for crypto assets. While the framework aims to provide flexibility for firms to operate and innovate responsibly, it underscores CIRO's commitment to agile regulation and investor protection. Regulated entities must ensure their custody arrangements align with the new framework to mitigate risks such as hacking, fraud, and insolvency, thereby preventing investor losses. Specific compliance actions will be dictated by the terms and conditions of membership imposed by CIRO.

What to do next

Review and update digital asset custody arrangements to comply with CIRO's new framework.
Ensure client assets are held according to enhanced custody and segregation requirements.
Assess diversification of custody arrangements within the new risk-based structure.

Source document (simplified)

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

February 3, 2026

Type: Media Release > General

Contact

Joanna Nicholson Manager, Corporate Communications and Public Affairs 416-943-4640 Email
Demonstrates continued evolution of Canada’s approach to crypto-asset regulation

February 3, 2026. Toronto, ON. – 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.

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February 3, 2026

Type: Media Release > General