Canada’s budget promises laws to regulate stablecoins, following US

Canada's government announced in its 2025 federal budget plans to introduce legislation regulating fiat-backed stablecoins, aligning with recent stablecoin laws passed in the US. The proposed rules will require stablecoin issuers to maintain sufficient reserves, establish clear redemption policies, and implement robust risk management frameworks, including data protection measures. The Bank of Canada will receive $10 million over two years to support implementation, with subsequent annual costs estimated at $5 million, which will be offset by fees from regulated issuers under the Retail Payment Activities Act. This move is part of a broader strategy to modernize Canada's payment systems. Industry leaders, like Coinbase Canada CEO Lucas Matheson, view the proposal positively, suggesting it will fundamentally change how Canadians interact with money and the internet. This regulatory push comes as the global stablecoin market is projected to grow significantly, with institutional adoption increasing, and follows Canada's decision in September 2024 to drop plans for a central bank digital currency.

(Source：Cointelegraph)