Canada Begins March Toward Stablecoin Regulations

Canada is set to introduce legislation that will regulate Canadian-dollar-backed stablecoins, similar to the U.S. GENIUS Act. The government’s Budget 2025 outlines plans for a regulatory framework that ensures issuers maintain adequate reserves and implement risk management strategies. The Bank of Canada will oversee these regulations to protect consumer and personal information. The announcement has been met with approval from the Canadian Web3 Council, which believes it will stimulate innovation in the payments market and reduce transaction costs for consumers. Amendments to existing laws, including the Retail Payment Activities Act, are expected to be necessary to enhance national security. This development is seen as a vital step to keep up with global standards for stablecoins and will allow fintech companies to build a robust payment infrastructure in Canada.

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