Canada’s Finance Ministry has proposed regulations for stablecoin issuers., 2026/04/03 09:45:57

The Canadian Ministry of Finance has put forward proposals for the regulation of stablecoin issuers. These measures aim to safeguard investors and mitigate the risks associated with money laundering.

Under the initiative, firms that issue stablecoins and are not classified as financial institutions will be required to register with the Bank of Canada. As part of the registration process, they must provide financial and technical details related to the issuance of tokens and regularly report on compliance with the established requirements. Reports must be certified by a qualified accountant and a lawyer.

Issuers are mandated to maintain asset reserves at a ratio of at least 1:1 to the volume of stablecoins issued. These reserves must be held in cash or highly liquid assets with a reliable custodian. The assets of the company and its clients must be kept separate. In the event of the issuer’s insolvency, the reserve assets must remain accessible to token holders.

Additionally, it is proposed that issuers be required to publish a redemption policy for stablecoins, detailing the conditions, timelines, and any applicable fees. Companies must also disclose their approaches to data protection and risk management.

The Ministry has expressed opposition to paying interest to stablecoin holders. Issuers are prohibited from marketing such tokens as legal tender or bank deposits. Companies must adhere to anti-money laundering (AML) and counter-terrorism financing regulations.

The Ministry of Finance and the Bank of Canada plan to draft the relevant legislation within the next 12 to 18 months.

Previously, the Canadian Parliament began reviewing a bill that would prohibit politicians from accepting donations in cryptocurrencies.