CMC News

#Canada Rolls Out #Stablecoin Regulations After U.S. Lead

Canada's 2025 federal budget revealed plans to introduce comprehensive regulations for fiat-backed stablecoins, following the United States' passage of landmark legislation in July. The budget document released Tuesday outlined requirements for issuers to maintain sufficient reserves, establish redemption policies, and implement robust risk management frameworks.

The legislation will mandate that stablecoin issuers protect personal and financial information while adhering to national security safeguards. These measures aim to ensure fiat-backed stablecoins remain safe and secure for both consumers and businesses across Canada's 41.7 million population.

The Bank of Canada will retain $10 million from its Consolidated Revenue Fund remittances over two years, starting in the 2026-2027 fiscal year, to administer the new framework. Following that period, annual administrative costs estimated at $5 million will be covered by fees charged to #stablecoin issuers regulated under the legislation.

Canadian officials are also preparing amendments to the Retail Payment Activities Act to activate regulation over payment service providers utilizing stablecoins. The budget document did not disclose specific conclusions or provide a timeline for when the legislation will be tabled in Parliament.