Webull Canada Crypto Limited has been accepted as a member trader of the Canadian Investment Regulatory Organization, allowing it to operate as an investment trader in Canada under the supervision of the CIRO.
The company previously Operations established in Canada under CIRO supervision As part of Webull’s international expansion. It provides access to listed securities and exchange-traded products under the Canadian regulatory framework, separately from cryptocurrency-related services.
Webull obtains cryptocurrency exemptions from CIRO
Along with the membership approval, CIRO granted Webull an exemption from certain insurance-related regulatory requirements. The exemption applies to rules covering financial institutions’ bond insurance and mail-order insurance obligations for dealer members.
The CIRO said the exemptions are limited in scope and apply only to Webull’s cryptocurrency-related businesses, including its platform for buying, selling and holding cryptocurrency assets.
Under the circumstances, And he pees It must maintain insurance coverage for the cryptocurrency assets held, including internal custodial systems and external custodians such as Coinbase Custody Trust Company LLC once involved. The Company is also expected to seek additional coverage for assets in cold storage where possible.
Read more: Webull Canada expands the trading day with 24/7 access to US stocks and ETFs.
Insurance arrangements must meet CIRO’s minimum capital and coverage criteria. Any deductible amount must be reflected in the company’s risk-adjusted capital accounts.
The CIRO retains the authority to revoke relief
Webull is also required to maintain a designated credit account at an approved financial institution. If a deficiency in coverage is identified, the account must be funded accordingly, but customer cash balances cannot be used for this purpose.
CIRO also requires the company to regularly review independent SOC 2 Type 2 audit reports from its custodians to ensure custody controls remain effective.
The regulator said that such exemptions are only granted in exceptional cases where companies show sufficient safeguards. CIRO reserves the right to cancel the exemption in the event of a violation of the terms or in the event of a change in the relevant rules.
This article was written by Tariq Sikdar at www.financemagnates.com.
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