Cardano Launches CIP-0113 for Token Compliance Controls
The Cardano Foundation has introduced a new compliance framework for token issuers on its blockchain. On October 7, 2026, during the TOKEN2049 event, the Foundation announced that CIP-0113 is now live on the mainnet. This standard enables issuers to embed compliance rules directly into Cardano’s native tokens, including the ability to freeze, seize, or restrict asset transfers.
CIP-0113 allows for the integration of KYC, AML checks, sanctions screening, and transfer restrictions. Unlike off-chain solutions, these rules are validated by the Cardano ledger itself during token minting, burning, or transfers. The upgrade does not require a hard fork, ensuring that tokens remain native Cardano assets with predictable execution costs. The modular design of CIP-0113 allows issuers to create custom compliance modules or modify existing ones.
Support for CIP-0113 is already available in wallets like Eternl and GeroWallet, as well as the block explorer CardanoScan. The Swiss Capital Markets and Technology Association (CMTA) has recognized CIP-0113 compliant tokens as comparable to its CMTAT framework, used for certifying equity securities on-chain in Switzerland.
The development of CIP-0113 began in 2023, with the proposal formally merged into the Cardano Improvement Proposals repository on September 29, 2026. The standard is primarily designed for regulated assets like stablecoins and tokenized funds, where issuers need legal controls to block sanctioned addresses or claw back funds. However, the eUTXO model of Cardano presents challenges, as restrictions on one asset in a shared output could affect other tokens or ADA within the same envelope. CIP-0113 addresses this with an “unfracking” mechanism, but wallets and DeFi protocols must handle restricted assets carefully.
Users of tokens issued under CIP-0113 must trust the issuer as much as the code, as these tokens can be frozen or seized. ADA itself remains unaffected by these controls, though the shared-output issue highlights the need for caution when mixing restricted and unrestricted assets.