- Canada introduces stablecoin regulations in its 2025 budget, aligning with U.S. GENIUS Act.
- Issuers must maintain full reserves, clear redemption rules, and strong risk management.
As a major move towards the regulation of digital assets, Canada has announced detailed regulatory actions on fiat-backed stablecoins as part of its 2025 federal budget. The relocation is based on the same regulatory step by the United States, which passed stablecoin legislation in the form of the GENIUS Act four months ago, in July. The Canadian government is striving to establish a safe and open system of digital currency transactions in the financial system of the country.
Regulatory Requirements and Implementation Timeline
The suggested bill will require the issuers of stablecoins to have sufficient reserves and have well-defined redemption policies in case users need to withdraw their funds. Firms in this arena should have elaborate risk management measures including protection of customer financial and personal information.
To monitor implementation, the Bank of Canada will be funded with $10 million within a period of two years, starting with the 2026-2027 fiscal year. After this initial…
