Webull Canada Crypto CIRO approval allows the firm to operate as an investment dealer in Canada under the Canadian Investment Regulatory Organization. CIRO also gave the company limited relief from some insurance rules tied to its crypto business. However, the exemption applies only to specific insurance requirements.
The firm had already set up operations in Canada under CIRO supervision as part of Webull’s international expansion. It offers access to listed securities and exchange-traded products under Canada’s regulatory framework. Meanwhile, those services remain separate from its crypto activities.
Webull Canada Crypto CIRO Approval Terms
CIRO said the insurance relief covers rules on financial institution bond insurance and mail insurance for dealer members. Notably, the exemption only covers Webull’s crypto business, including its platform for buying, selling, and holding crypto assets.
Under the terms, Webull must keep insurance for crypto assets held in custody. That includes assets held in its own custody systems and with outside custodians. CIRO named Coinbase Custody Trust Company LLC as an external custodian once engaged. In addition, the firm is expected to seek extra coverage for assets held in cold storage where possible.
Insurance and Custody Safeguards
The insurance setup must meet CIRO’s minimum capital and coverage standards. If there is a deductible, Webull must include it in its risk-adjusted capital calculations. Therefore, the relief does not remove the need for capital treatment tied to insurance gaps.
Webull must also keep a dedicated trust account at an approved financial institution. If the firm finds a coverage shortfall, it must fund that account. However, it cannot use client cash balances for that purpose.
CIRO also told the firm to review independent SOC 2 Type 2 audit reports from its custodians on a regular basis. The regulator said it grants this kind of relief only in exceptional cases when firms show adequate safeguards. Moreover, CIRO can revoke the exemption if Webull breaches the conditions or if the relevant rules change.
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