The Canadian Investment Regulatory Organization (CIRO) issued new interim guidelines for trading platforms holding crypto assets on behalf of clients. It introduces a tiered model that lets high-quality crypto custodians hold a larger percentage of the platform’s assets. (The Logic)

Talking point: Crypto-trading platforms have a long history of failures and fraud, including the infamous collapse of Canada’s Quadriga in 2019, which led to $169 million in investor losses. Canadian securities regulators started cracking down on the sector in 2021, requiring platforms operating in the country to register as securities dealers. With tokenized versions of real-world assets that trade on blockchains becoming increasingly popular, the lines between traditional securities dealers and crypto platforms are blurring. CIRO said the new guidelines are meant to clarify the rules for investment dealers and prevent future blowups that harm investors.