Canada moves to regulate stablecoins under central bank oversight after Bill C-15 passes

Finance Canada has confirmed that Bill C-15 has received Royal Assent. This paves the way for a federal framework to regulate stablecoins and brings the asset class under closer oversight by the Bank of Canada.

The move marks a shift toward treating stablecoins as part of the country’s financial infrastructure. Regulators aim to support digital payments while maintaining consumer protection and financial stability.

Central bank to oversee stablecoin issuers

Under the proposed framework, issuers of fiat-backed stablecoins will be required to register with the Bank of Canada and comply with ongoing supervisory requirements.

The framework applies to both domestic and foreign issuers operating in Canada, suggesting that widely used foreign stablecoins could also fall within its scope.

According to the policy document, the central bank will oversee compliance. At the same time, the Department of Finance will lead rulemaking and legislative development.

Strict reserve and redemption rules

The framework introduces clear requirements around how stablecoins must be backed and redeemed.

Issuers will need to maintain a full 1:1 cash or high-quality liquid asset reserve, held separately from company funds. They must also allow users to redeem stablecoins at par value into the referenced fiat currency.

These measures are intended to ensure stability and prevent risks associated with undercollateralized or opaque backing structures.

Limits on yield and marketing

The rules also place restrictions on how stablecoins can be offered to users.

Issuers will not be allowed to provide interest or yield on holdings, and must avoid presenting stablecoins as bank deposits or legal tender. 

They will also be required to maintain governance, risk management, and data security standards, alongside compliance with anti-money laundering regulations.

A phased rollout toward 2027

While the legislation has now passed, the framework will take time to implement. Authorities expect regulatory development and consultations to continue over the next 12 to 18 months, with full implementation targeted for 2027.

This phased approach reflects the government’s effort to balance innovation with oversight in a rapidly evolving market.

Part of a global regulatory shift

Canada’s framework aligns with broader international efforts to regulate stablecoins, following developments in the United States and the European Union.

By introducing central bank supervision and standardized requirements, the country is positioning stablecoins as regulated financial instruments rather than purely crypto-native assets.

The initiative also aims to support new payment use cases, including cross-border transfers, while ensuring that risks to consumers and the financial system are contained.

Final Summary

• Canada’s stablecoin framework subjects issuers to central bank oversight, signaling a shift toward regulated digital payment infrastructure.
• The move aligns with global efforts to standardize stablecoin rules, with full implementation expected by 2027.