In a significant move to enhance the safety of cryptocurrency investments, Canada's investment regulator, CIRO, has introduced a new regulatory framework aimed at preventing incidents similar to the QuadrigaCX collapse, as stated in the official source.
New Digital Asset Custody Framework for 2026
The 2026 Digital Asset Custody Framework mandates that crypto platforms increase transparency regarding the storage of customer funds. Companies will now be legally accountable for any losses incurred, ensuring that they take necessary precautions to safeguard assets.
Shifting from Single Point of Failure
This new framework shifts the industry away from the traditional single point of failure model, where a single individual holds all the keys to customer assets. Instead, it promotes a system where customer funds are secured by independent, regulated third parties, thereby enhancing overall trust and security in the crypto market.
As Canada implements new regulations to enhance cryptocurrency safety, concerns over stablecoins continue to grow, highlighting the need for oversight to prevent financial instability. For more details, see stablecoin risks.
