As the global stablecoin market swells toward $291 billion, Canada has announced sweeping oversight measures that will fundamentally reshape how digital currency operators conduct business. The 2025 federal budget of the country introduces a comprehensive regulatory framework targeting companies that issue fiat-backed stablecoins.
Strict Compliance Requirements Ahead
The proposed rules make it mandatory that stablecoin providers maintain sufficient financial reserves, create clear redemption procedures, and deploy robust risk management systems. National security provisions will strengthen the framework’s integrity, ensuring consumer and business protection remains paramount.
The Bank of Canada will keep $10 million from its Consolidated Revenue Fund remittances over the two years starting in 2026-27 to administer the new legislation. After that, the annual administrative costs are estimated at $5 million and will be covered by fees on the stablecoin issuers regulated under the legislation.
Your completely free resource hub designed to boost your knowledge of cryptocurrencies
To propose the new regulations, officials have engaged in intensive consultations with industry players and regulators, particularly addressing token classification and preventing capital migration toward U.S. dollar-pegged alternatives.
Canada joins a worldwide regulatory push for digital assets, following America’s GENIUS Act passage in July, which earned strong presidential backing. Europe’s MiCA regulation already operates, while Japan and South Korea advance similar initiatives. Standard Chartered bank is projecting that emerging market bank deposits could shift $1 trillion into U.S. stablecoins by 2028, underscoring the urgency that is driving regulatory action worldwide.
