The Government of Canada has officially announced plans to implement legislation regulating stablecoins backed by fiat currency. These changes were reflected in the federal budget for 2025 and will serve as the first step towards comprehensive oversight of the digital asset sector in the country.
This is reported by Business • Media
Key Provisions of the Bill
According to the budget document, the new rules will require stablecoin issuers to maintain significant reserves, implement refund policies, establish risk management systems, and ensure the protection of users’ personal data. Measures will also be put in place to ensure national security in order to support the stability of the financial system.
“The legislation aims at safe innovation and strengthening trust in digital assets.”
To implement these legislative changes, the Bank of Canada will allocate $10 million from the Consolidated Revenue Fund over two years, starting from 2026-2027. Subsequently, annual expenditures to support the initiative will reach $5 million, which will be covered by fees from stablecoin issuers.
Expanding the Regulatory Framework and Global Trends
At the same time, the government is preparing amendments to the “Retail Payments Act,” which will enhance the regulation of payment services that use stablecoins and create a comprehensive oversight system. This approach is intended to ensure the stability of the financial market and increase the transparency of transactions involving digital assets.
Canada is joining the global trend of regulating stablecoins. The United States has already passed the GENIUS Act regarding such digital assets, the European Union has the MiCA regulation in place, and Japan and South Korea are actively developing their own rules for digital finance.
As of November 5, 2025, according to CoinMarketCap, the total market capitalization of stablecoins stands at $314.5 billion. Experts at Standard Chartered Bank predict that by 2028, up to $1 trillion could be transferred from bank deposits in emerging markets into this class of digital assets.
The new Canadian measures aim to ensure the safe implementation of stablecoins, enhance market transparency, and strengthen user trust in digital assets. The development of a legal framework is also intended to minimize financial risks associated with the growing popularity of stablecoins among businesses and consumers in Canada.