Canada has enacted a national regulatory framework for stablecoins through Bill C-15. The legislation brings fiat-backed stablecoin issuers under the direct oversight of the Bank of Canada, requiring registration and strict reserve rules. Authorities aim to implement the framework fully by 2027, aligning with global regulatory shifts to treat stablecoins as part of the regulated financial infrastructure while supporting digital payments.
Finance Canada has confirmed that Bill C-15 has received Royal Assent. This move paves the way for a federal framework to regulate stablecoins, bringing the asset class under closer oversight.
The shift treats stablecoins as part of the country’s financial infrastructure. Regulators aim to support digital payments while maintaining consumer protection and financial stability.
Under the proposed framework, issuers of fiat-backed stablecoins must register with the Bank of Canada. This applies to both domestic and foreign issuers operating within the country.
The central bank will oversee compliance while the Department of Finance leads rulemaking. According to the policy document, widely used foreign stablecoins could also fall within its scope.
The framework introduces strict reserve and redemption rules. Issuers must maintain a full 1:1 cash or high-quality liquid asset reserve, held separately from company funds.
They are also required to allow users to redeem stablecoins at par value. These measures are intended to ensure stability and prevent risks from undercollateralized structures.
The rules also place significant limits on how stablecoins can be offered. Issuers will not be allowed to provide interest or yield on holdings and must avoid presenting them as bank deposits.
They must also maintain governance, risk management, and data security standards. Compliance with anti-money laundering regulations is also required.
While the legislation has passed, a phased implementation is planned. Authorities expect consultations to continue over the next 12 to 18 months.
Full implementation is targeted for 2027, reflecting an effort to balance innovation with oversight. This approach addresses a rapidly evolving market.
Canada’s framework aligns with broader international efforts to regulate stablecoins. It follows developments in jurisdictions like the United States and the European Union.
By introducing central bank supervision, the country positions stablecoins as regulated financial instruments. The initiative also aims to support new payment use cases like cross-border transfers.
