Canada has launched a stablecoin framework.
The Department of Finance Canada has published an update into its stablecoin regulations, with a new framework announced as part of Bill C-15. The Bank of Canada is set to provide an initial oversight on all non-institutional stablecoin issuers and full implementation after the subsequent consultation period is set for 2027.
Stablecoin framework proposal from the Department of Finance Canada
Importantly, the proposed regulations will split the oversight into issuance and activities (as seen in the diagram above). This also looks to limit the amount of newer directives that could clash with existing regulators continuing to regulate any stablecoin-related activities coming out of banks and credit unions.
Local currency stablecoins denominated in CAD (Canadian Dollars) will be treated the same as foreign-backed stablecoins, and most reserve criteria follows existing requirements across the U.S. and Europe (1:1 backing with cash and cash equivalent assets, short-term dated bonds/treasuries), as well as very transparent rules for redemptions.
