Canada Tightens Crypto Regulations Across Six Regulatory Bodies in 2026

In a significant move to tighten its crypto framework, Canada has implemented changes across six regulatory bodies in 2026. The Canadian Investment Regulatory Organization (CIRO) issued a new Digital Asset Custody Framework on February 3, requiring segregated wallets and stronger custody, governance, and cybersecurity controls.

The framework sets out formal expectations through terms and conditions of CIRO membership, while a permanent rule under the CIRO Rules themselves is still pending. In March, Parliament passed two federal bills that received Royal Assent: Bill C-15 created the Stablecoin Act under Bank of Canada supervision, and Bill C-12 rewrote FINTRAC's penalty framework, raising fines up to 40 times previous limits.

FINTRAC had cancelled 50 Money Services Business (MSB) licences so far this year, including 47 tied to crypto firms. This move was part of a record penalties already on the books from late 2025, including a $126 million fine against Cryptomus and a $14 million fine against KuCoin.