Canada unveils upcoming stablecoin legislation in federal budget

Canada's 2025 federal budget detailed plans for new legislation governing fiat-pegged stablecoins. This forthcoming law will mandate that stablecoin issuers maintain adequate reserves, establish clear redemption policies, implement risk management frameworks, and protect personal information. The legislation also includes national security safeguards to ensure consumer and business safety. The Bank of Canada will initially administer the legislation, funded by $10 million from the Consolidated Revenue Fund, with subsequent annual costs covered by fees charged to regulated issuers. Furthermore, the government is preparing amendments to the Retail Payment Activities Act to regulate payment service providers using stablecoins. This move aligns with a global trend in stablecoin regulation, following actions in the U.S. with the GENIUS stablecoin act, and existing frameworks like MiCA in Europe.

(Source：The Block)