Canada's investment regulator CIRO has launched a new framework for digital asset custody, adopting a tiered, risk-based regulatory model.

Odaily Planet Daily reports that Canada's investment regulator, CIRO, recently released a new digital asset custody framework aimed at strengthening the regulation of crypto asset custody methods and improving investor protection. The framework draws on lessons learned from past events such as the collapse of QuadrigaCX, focusing on preventing hacking, fraud, weak corporate governance, and bankruptcy risks. According to the guidelines, the new framework establishes a tiered, risk-based custody structure, allowing for compliance innovation while imposing differentiated regulatory requirements on different custody models. CIRO stated that the regulator will continue to update the framework to adapt to evolving industry developments as custody methods and cybersecurity risks continue to evolve.