Canada has published details of its new stablecoin regulatory framework, introduced through the 2025 Budget Implementation Act and progressed through Bill C-15.
The framework targets the issuance of fiat-backed stablecoins by non-financial institutions and is expected to come into force in 2027, following a regulatory development period of 12 to 18 months from early 2026.
The Bank of Canada will administer the framework and supervise stablecoin issuers, drawing on its existing expertise in payment service provider oversight under the Retail Payment Activities Act. The Department of Finance Canada will retain responsibility for policy and regulatory development.
Core requirements and scope
Non-financial institution issuers of fiat-backed stablecoins, both domestic and foreign, that make stablecoins available to Canadians will be required to register with the Bank of Canada and provide ongoing compliance information. Issuers must maintain a 1:1 reserve of high-quality liquid assets in the reference currency, held in segregated accounts at a qualified custodian, and establish and publish redemption policies guaranteeing at-par redemption in the referenced fiat currency.
Additional obligations include policies on corporate governance, data security, risk management, and recovery and resolution. Issuers are prohibited from offering interest or yield to stablecoin holders, from representing their stablecoin as legal tender or a deposit, and from providing false or misleading information. Issuers will also be subject to anti-money laundering and counter-terrorist financing requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, as they are classified as money services businesses dealing in virtual currencies.
Furthermore, federally and provincially regulated financial institutions such as banks and credit unions are excluded from the framework's scope, as they are already subject to comprehensive prudential regulation. Non-fiat-backed stablecoins will continue to be regulated by provincial and territorial securities regulators.
The framework is designed to align with international standards, including Financial Stability Board recommendations, the EU's Markets in Crypto-Assets regulation, and the US GENIUS Act, with the stated aim of enabling future interoperability and reciprocity agreements with those jurisdictions.
