Canada’s 2025 Federal Budget Reveals Plans to Regulate Stablecoins

The post Canada’s 2025 Federal Budget Reveals Plans to Regulate Stablecoins  appeared first on Coinpedia Fintech News

Canada is taking a major step to regulate stablecoins, a sector that has recently seen massive demand from institutions. This comes after the U.S. passed GENIUS Act, the landmark stablecoin legislation, setting an example for other countries. 

Canada Moves to Regulate Stablecoins

Canada plans to regulate fiat-based stablecoins as part of its 2025 Federal budget. The budget document notes that the new rules will require stablecoin issuers to maintain sufficient reserves, set clear redemption policies, implement risk management frameworks, and protect users’ personal data. 

The Bank of Canada will retain $10 million over two years, starting in 2026-27, from its remittances to the Consolidated Revenue Fund. After that, it expects annual administrative costs at around $5 million, which will be offset from stablecoin issuers regulated under the Act.

It also plans to prepare amendments to the Retail Payment Activities Act to enable the regulation of payment service providers that carry out payment functions using stablecoins.

Although the document did not specify a timeline, this is part of a wider plan to modernize payments and make digital transactions faster, safer, and more affordable for Canada’s 41.7 million residents.

• Also Read :
•   India to Launch ARC Token Stablecoin Backed by Government Securities
•   ,

Crypto advocacy group Stand With Crypto Canada praised the move, calling it a “significant move toward faster, cheaper, and borderless payments.”

Stablecoin Demand Surges

The total stablecoin market cap has surpassed $300 billion, and is currently at $312 billion, which reflects the growing demand. The institutional demand is also rising as major companies are jumping on board.

Global payment giants like Western Union, SWIFT, MoneyGram, and Zelle have either started using stablecoin solutions or announced plans to do so in the past few months.

In Canada, Tetra Digital is emerging as one of the leading players in the stablecoin space. It raised $10 million to create a digital Canadian dollar, backed by investors like Shopify, Wealthsimple, and the National Bank of Canada.

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

Subscribe to News

FAQs