Canada’s 2025 federal budget unveiled the country’s first comprehensive framework for regulating fiat-backed stablecoins — marking a major step toward formal oversight of digital assets.
According to the proposal, stablecoin issuers will be required to maintain sufficient reserves, implement risk management and redemption policies, and ensure the protection of users’ personal data. The framework will also introduce national security measures to preserve financial system integrity.
The Bank of Canada plans to allocate $10 million from the Consolidated Revenue Fund over two years (2026–2027) to support implementation of the new law. Thereafter, annual operational costs of approximately $5 million will be covered through fees collected from stablecoin issuers.
In parallel, amendments to the Retail Payments Activities Act will expand oversight to payment service providers using stablecoins — creating a unified supervisory structure for digital finance in the country.
By doing so, Canada joins a growing list of jurisdictions advancing stablecoin regulation. The United States recently passed its GENIUS Act, the European Union has implemented MiCA, and Japan and South Korea are developing similar frameworks.
As of November 5, 2025, the global stablecoin market capitalization reached $314.5 billion, according to CoinMarketCap. Analysts at Standard Chartered forecast that up to $1 trillion could migrate from emerging-market bank deposits into stablecoins by 2028.
Experts note that Canada’s new measures are designed to enable safe innovation, improve transparency, and strengthen user confidence in digital assets — while mitigating financial risks stemming from their rapid adoption by local businesses and consumers.
Earlier this year, Canada fined the crypto payment platform Cryptomus a record $126 million for alleged money laundering violations — underscoring the government’s intent to tighten its grip on the crypto industry.
