Canada Begins March Toward Stablecoin Regulations

On November 5, 2025, the Canadian government announced its commitment to introduce legislation regulating Canadian-dollar-backed stablecoins. This move follows the recent U.S. GENIUS Act and is designed to set clear standards for asset reserves, requiring issuers to maintain adequate reserves and establish redemption policies. The Bank of Canada will oversee the implementation of these regulations, ensuring that stablecoin issuers protect the sensitive data of Canadians. Crypto advocates welcomed this initiative, highlighting its potential to foster innovation in Canada’s payments market by reducing transaction costs for consumers and businesses. The government also aims to amend existing legislation to ensure national security safeguards for the financial system. This regulatory framework positions Canada to catch up with global standards for stablecoin technology, paving the way for a competitive fintech environment.

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