OSC proposes tighter custody rules for crypto trading platforms operating in Ontario
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The draft rules would require platforms to hold client assets with a qualified custodian in more circumstances, closing a gap regulators flagged after last year's exchange failures.
The Ontario Securities Commission published draft rules Monday that would tighten custody requirements for crypto trading platforms serving Ontario residents, expanding on interim guidance issued after a string of exchange failures last year.
The proposal would require more platforms to hold client assets with a qualified, arm's-length custodian rather than in-house wallets.
A comment period runs through the end of August, with platform operators given a compliance window into next year.