Webull Canada Crypto
Limited has been admitted as a Dealer Member of the Canadian Investment
Regulatory Organization, allowing it to operate as an investment dealer in
Canada under CIRO oversight.
The firm previously established
operations 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, separate from
its crypto-related services.
Webull Gains CIRO Crypto Exemptions
Alongside the
membership approval, CIRO granted Webull exemptive relief from certain
insurance-related regulatory requirements. The relief applies to rules covering
financial institution bond insurance and mail insurance obligations for dealer
members.
CIRO said the
exemptions are limited in scope and apply only to Webull’s crypto-related
business, including its platform for buying, selling, and holding crypto
assets.
Under the conditions, Webull must maintain
insurance coverage for crypto assets held in custody, including both internal
custody systems and external custodians such as Coinbase Custody Trust Company
LLC once engaged. The firm is also expected to seek additional coverage for
assets held in cold storage where possible.
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Canada Expands Trading Day With 24/5 Access to US Stocks, ETFs.
The insurance
arrangements must meet CIRO’s minimum capital and coverage standards. Any
deductible must be reflected in the firm’s risk-adjusted capital calculations.
CIRO Retains Power to Revoke Relief
Webull is also
required to maintain a dedicated trust account at an approved financial
institution. If a coverage shortfall is identified, the account must be funded
accordingly, but client cash balances cannot be used for this purpose.
CIRO also requires the
firm to regularly review independent SOC 2 Type 2 audit reports from its
custodians to ensure custody controls remain effective.
The regulator said
such exemptions are granted only in exceptional cases where firms demonstrate
adequate safeguards. CIRO retains the right to revoke the relief if conditions
are breached or if relevant rules change.
This article was written by Tareq Sikder at www.financemagnates.com.
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