Canada’s investment regulatory body, CIRO, has introduced a new digital asset protection framework aimed at enhancing security standards for cryptocurrency trading platforms and reducing risks for investors. This move comes amid rising concerns over transparency and safety in the crypto market. Under the new rules, platforms must adopt stringent security measures to prevent incidents like the collapse of QuadrigaCX, where investors suffered significant losses due to restricted access to their funds. CIRO’s goal is to ensure proper and secure registration of crypto assets to prevent fraud and failures. As cryptocurrencies gain popularity, associated financial risks are increasing, prompting regulators worldwide to enforce stricter safety protocols and oversight. Canada’s framework seeks to promote transparency and safeguard investor rights in the crypto market. While these regulations are expected to make crypto trading safer and restore investor confidence, market volatility and regulatory complexities will likely persist, requiring investors to remain cautious.
Source: coindesk
