CRA-8.2.4

In undertaking an appropriate risk assessment of the third party crypto-asset custodian in accordance with Paragraph CRA-8.2.3, licensees should take into account any or all of the following:

(a) The expertise and market reputation of the third party crypto-asset custodian, and once a crypto-asset has been lodged by the licensee with the third party crypto-asset custodian, the crypto-asset custodian's performance of its services to the licensee;
(b) The arrangements, including cyber security measures, for holding and safeguarding crypto-assets;
(c) An appropriate legal opinion as to the protection of crypto-assets in the event of insolvency of the custodian;
(d) Whether the third party crypto-asset custodian is regulated and by whom;
(e) The capital or financial resources of the third party crypto-asset custodian;
(f) The credit rating of the third party crypto-asset custodian; and
(g) Any other activities undertaken by the third party crypto-asset custodian and, if relevant, any affiliated company
Amended: April 2023
Added: April 2019