CIRO Approves Webull Canada Crypto as Dealer Member, Grants Insurance Relief

Webull Canada Crypto Limited has been admitted as a Dealer Member of the Canadian Investment Regulatory Organization. This status allows the firm to operate as an investment dealer in Canada under CIRO oversight.

The company had previously established operations in Canada under CIRO supervision as part of Webull's international expansion. Its services provide access to listed securities and exchange-traded products under the Canadian regulatory framework, which are separate from its crypto-related offerings.

Alongside the membership approval, CIRO has granted Webull exemptive relief from certain insurance-related regulatory requirements. This relief applies to rules covering financial institution bond insurance and mail insurance obligations for dealer members.

CIRO stated the exemptions are limited in scope and apply only to Webull's crypto-related business, which includes its platform for buying, selling, and holding crypto assets. Under the conditions, Webull must maintain insurance coverage for crypto assets held in custody, covering both internal systems and external custodians such as Coinbase Custody Trust Company LLC once engaged. The firm is also expected to seek additional coverage for assets in cold storage where possible.

The insurance arrangements must meet CIRO's minimum capital and coverage standards, with any deductible reflected in the firm's risk-adjusted capital calculations. Webull is additionally required to maintain a dedicated trust account at an approved financial institution. If a coverage shortfall is identified, this account must be funded accordingly, though client cash balances cannot be used for this purpose.

CIRO also mandates that the firm regularly review independent SOC 2 Type 2 audit reports from its custodians to ensure custody controls remain effective. The regulator noted 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.