Canada Moves to Regulate Stablecoins in 2025 Federal Budget

Canada’s 2025 federal budget outlines the government’s first comprehensive plan to regulate fiat-backed stablecoins marking a historic step in shaping the country’s digital asset ￰0￱ to the budget the upcoming legislation will require issuers to maintain adequate reserves implement redemption mechanisms

create risk management systems and protect user ￰1￱ will also include national security measures to preserve the integrity of the Canadian financial ￰2￱ Bank of Canada will allocate $10 million from the Consolidated Revenue Fund over two years (2026–2027) to launch the ￰3￱ that the program’s annual operating cost of about $5 million will be funded by fees from stablecoin ￰4￱ the same time lawmakers are preparing amendments to the Retail Payments Act

strengthening oversight of payment providers that use ￰5￱ say these steps will create a comprehensive system of control and accountability for digital ￰6￱ Joins the Global Trend in Regulating Stablecoins With this move Canada joins the growing global effort to bring stablecoins under formal ￰7￱ United States has already passed the GENIUS Act the European Union introduced MiCA and Japan and South Korea are drafting similar ￰8￱ of November 5

2025 the total stablecoin market stands at $305.9 billion according to ￰9￱ Chartered Bank forecasts that up to $1 trillion could flow from emerging market bank deposits into stablecoins by 2028 underscoring the urgency of ￰10￱ say Canada’s new measures aim to foster trust and transparency while reducing financial risks for businesses and consumers adopting digital ￰11￱ move signals Ottawa’s intent to position Canada as a trusted and secure player in the next phase of the global digital ￰12￱ this year

Canada fined crypto platform Cryptomus a record $126 million for money laundering — another sign the country is taking crypto regulation seriously.