Canada Prepares Stablecoin Regulations Ahead of November 2025 Federal Budget
Canada is set to introduce comprehensive stablecoin regulations in its November 2025 federal budget, aiming to align with international standards like the U.S. GENIUS Act and EU frameworks. The Bank of Canada advocates for a unified national approach to prevent capital flight into U.S.-based digital tokens and maintain monetary policy control.
Public awareness remains critically low—only 21% of Canadians understand stablecoins—while nearly half of users report negative experiences like fraud or hacks. The absence of a federal framework has led to fragmented provincial oversight, treating stablecoins as derivatives or securities inconsistently.
The upcoming rules will likely mandate reserve-backed structures, mirroring global precedents. Ottawa's MOVE addresses regulatory gaps that risk leaving Canada behind in payments innovation.
