Canada to Regulate Stablecoins in 2025 Budget Plan

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 05, 2025

Key Takeaways

Canada’s 2025 budget includes plans to regulate stablecoins, which require issuers to maintain reserves and set clear redemption policies;
Companies must adopt safeguards to reduce risks, including measures to protect users’ personal and financial information;
The Bank of Canada will receive $10 million over two years to support regulation, with ongoing costs covered by regulated firms.

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Canada is preparing new national rules for stablecoins, with plans outlined in the 2025 federal budget.

Under the proposed approach, companies that issue stablecoins will have to meet several key requirements. They must maintain sufficient funds in reserve to cover customer redemptions and outline the policies governing those redemptions.

They will also need to adopt practices that limit risks, including steps to protect people’s financial and personal information.

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To support the rollout and supervision of the new system, the Bank of Canada will receive $10 million over two years beginning in the 2026–2027 financial year. After that period, about $5 million per year will be allocated to ongoing costs, funded by companies covered under the Retail Payment Activities Act.

Although the exact timing of the legislation’s introduction is not mentioned in the budget, it is part of a larger plan to improve how payments are made across the country.

The goal is to make digital payments more efficient, less costly, and more secure for Canada’s population of over 41 million.

Lucas Matheson, head of Coinbase’s $4.63B Canadian operations, commented on the proposal during an interview with CBC. He said the changes could reshape the way Canadians use money and access the internet.

Recently, Bank Indonesia announced plans to launch a stablecoin backed by government bonds. What did Governor Perry Warjiyo say? Read the full story.