Canada’s 2025 federal budget outlines the government’s first comprehensive plan to regulate fiat-backed stablecoins, marking a historic step in shaping the country’s digital asset framework. According to the budget , the upcoming legislation will require issuers to maintain adequate reserves, implement redemption mechanisms, create risk management systems, and protect user data. It will also include national security measures to preserve the integrity of the Canadian financial system. The Bank of Canada will allocate $10 million from the Consolidated Revenue Fund over two years (2026–2027) to launch the framework. After that, the program’s annual operating cost of about $5 million will be funded by fees from stablecoin issuers. At the same time, lawmakers are preparing amendments to the Retail Payments Act, strengthening oversight of payment providers that use stablecoins. Officials say these steps will create a comprehensive system of control and accountability for digital transactions. Canada Joins the Global Trend in Regulating Stablecoins With this move, Canada joins the growing global effort to bring stablecoins under formal supervision. The United States has already passed the GENIUS Act, the European Union introduced MiCA, and Japan and South Korea are drafting similar frameworks. As of November 5, 2025, the total stablecoin market stands at $305.9 billion, according to DefiLIama. Standard Chartered Bank forecasts that up to $1 trillion could flow from emerging market bank deposits into stablecoins by 2028, underscoring the urgency of regulation. Experts say Canada’s new measures aim to foster trust and transparency while reducing financial risks for businesses and consumers adopting digital assets. The move signals Ottawa’s intent to position Canada as a trusted and secure player in the next phase of the global digital economy. Earlier this year, Canada fined crypto platform Cryptomus a record $126 million for money laundering — another sign the country is taking crypto regulation seriously.
