BeInCrypto • October 8th 2026, 2:00 AM
Cardano's New Standard Lets Issuers Freeze and Seize Tokens: Is Your ADA Safe?
Key Summary
Cardano Foundation announces the mainnet launch of CIP-0113, a native token standard allowing issuers to freeze, seize, and restrict assets directly on-chain. The standard targets regulated assets and raises questions about control. ADA itself is not converted into a freezable asset, and only issuers who adopt the standard can freeze or seize their tokens.
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What CIP-0113 Means for Cardano Tokens
CIP-0113 is a Cardano Improvement Proposal that creates a native token standard with built-in compliance controls. Issuers can freeze holdings, seize assets, restrict recipients, and apply KYC, AML, and sanctions checks.Design and Implementation
Enforced by the network itself, no hard fork required. The design uses Cardano's eUTXO model, keeps execution costs predictable, and has a modular structure with pluggable substandards. Regulated products often require these tools.Target Market and Adoption
The standard targets stablecoins, tokenized funds, and other regulated assets. Community development began in 2023, and the proposal reached the CIP repository on September 29, 2026. The Eternl and GeroWallet wallets, and the CardanoScan block explorer back the standard.Risks and Implications
Does CIP-0113 Put ADA at Risk of Freezing? No. ADA itself is not converted into a freezable asset. The controls apply only to tokens whose issuers opt into the standard. ADA's price still turned lower after the announcement.Conclusion
The standard as an opt-in toolkit rather than a network-wide rule. Only issuers who adopt CIP-0113 gain the ability to freeze or seize their own tokens. The standard addresses technical wrinkle involving shared outputs with a mechanism called unfracking.#Cardano#ADA#US#Crypto#Compliance