Canada Plans New Rules for Fiat-Backed Stablecoins
Canada will introduce new regulations for fiat-backed stablecoins, following the U.S. GENIUS Act passed in July 2025. The plan is part of Canada’s 2025 federal budget.
These rules will require stablecoin issuers to protect users’ funds and personal data. They will also enforce national security checks and clear policies to allow coin redemption for cash, according to the budget report.
How Canada Will Manage Stablecoin Regulation
The Bank of Canada will oversee the stablecoin framework and its funding. It will allocate $10 million from its Consolidated Revenue Fund for two years starting in 2026–2027. After that, issuers will cover the annual $5 million operating costs through fees.
The government will update the Retail Payment Activities Act to regulate companies offering stablecoin payment services. This change aims to make digital money safer for Canada’s 41.7 million residents. No official date is set yet for when Parliament will review the legislation.
Industry leaders have supported the move. Faryar Shirzad, Coinbase CPO, tweeted the importance of a clear national law due to mixed federal and provincial jurisdictions. He praised the prime minister for preparing Canada’s currency for the future tokenized financial system.
Lucas Matheson, CEO of Coinbase Canada, said the new rules could transform how Canadians use money and the internet.
Canada Joins Global Stablecoin Regulation Trend
Canada’s framework follows the U.S. GENIUS Act. Other regions also regulate stablecoins. Europe uses the Markets in Crypto-Assets Regulation, while Japan and South Korea are developing theirs.
Market forecasts from Keyrock and Bitso suggest the stablecoin market could reach $1 trillion by 2030.
