Canada Begins March Toward Stablecoin Regulations

Canada is advancing towards regulating Canadian-dollar-backed stablecoins following the U.S. GENIUS Act. The government, through its Budget 2025, indicated that legislation is forthcoming to establish clear standards for stablecoins, emphasizing the oversight role of the Bank of Canada. This legislative framework will mandate that issuers maintain adequate asset reserves, create redemption policies, and develop risk management frameworks while ensuring the protection of personal information for Canadians. The initiative has garnered praise from crypto advocates, notably the Canadian Web3 Council, which believes it will enhance competition in the payments market and lower transaction costs. Additionally, the government plans to amend the Retail Payment Activities Act and implement national security safeguards to secure the Canadian financial system. Overall, this move is seen as a critical step to position Canada competitively within the global stablecoin market.

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