Canada to place stablecoin issuance under central bank oversight

Canada's Ministry of Finance has announced a new regulatory framework that will place stablecoin issuance under the supervision of the country's central bank. The framework, introduced as part of the 2025 budget and Bill C-15, will apply to issuers of fiat-pegged stablecoins. It will mandate several requirements, including maintaining adequate reserves, ensuring redemption at par value, and adhering to data security and governance standards. The ministry explained that the move is intended to align with global regulatory trends, such as the U.S. GENIUS Act and the European Union's Markets in Crypto-Assets (MiCA) regulation. Detailed regulations are expected to be developed over a period of up to 18 months starting from early this year, with full implementation planned for 2027.