The Canadian government has taken concrete steps towards regulating the stablecoin market. On April 2 this year, the Treasury reported that Bill C-15, included in the Budget Implementation Act 2025, had been approved or received Royal Assent.
With this approval, Elaboration of regulations forming the stablecoin framework National law known as stablecoin law.
The main purpose of this framework is to regulate the issuance of fiat-backed stablecoins, i.e. digital assets whose value is pegged to traditional currencies such as the Canadian dollar or the US dollar.
According to official information, the initiative aims to increase safety for Canadian users by requiring issuers to maintain reserves equal to 100% of the issue amount in segregated, high-quality liquid assets.
Additionally, they are required to provide immediate redemption at nominal value (par value) and establish clear policies regarding corporate governance, risk management, data security, and recovery plans.
The Bank of Canada is Agency responsible for the supervision and registration of non-financial issuersmaking stablecoins available to Canadians both domestically and abroad.
Issuers must provide ongoing information about their structure, financial health, technology used, and be subject to regular audits. Excluded from the framework are financial institutions that are already regulated at the federal or state level, as well as stablecoins that are not backed by fiat currency and will continue to be subject to the oversight of state securities regulators.
From a public policy perspective, this framework pursues four central objectives.
- Promote innovation and competition in the financial sector.
- Protecting consumers through transparency and reimbursement guarantees.
- Comply with international standards (e.g. Financial Stability Board recommendations, European MiCA regulations, recent US GENIUS legislation).
- Protects overall financial stability.
The Ministry of Finance emphasizes that while stablecoins are already primarily used as stores of value in crypto asset transactions, the new regime requires: Enables use in international payments and remittances Faster and more accessible.
The planned timeline is ambitious but realistic, with regulations estimated to take 12 to 18 months to develop starting in early 2026. Once drafted, it will be published in the Canada Register for a public consultation period.
The full framework is expected to come into force during 2027. Financial regulation experts believe this initiative will put Canada on par with other major jurisdictions, provide legal certainty for issuers, and provide greater confidence for users.
However, success will depend on the quality of public consultation and the Bank of Canada’s ability to effectively oversee a rapidly evolving sector.
It is important to mention that, despite Canada’s demonstrated approach to stablecoins, it recently revoked 23 licenses in one day for services related to Bitcoin and cryptocurrencies. This suggests, on the one hand, a “strong hand” or zero tolerance towards certain service providers, and, on the other hand, a “green light” for official decisions related to digital assets.
(Tag Translation) Canada
