Canada Tightens Regulation of Fiat-Pegged Stablecoins in 2025 Budget

Canada is taking a significant step towards regulating fiat-backed stablecoins, introducing new legislation as part of its 2025 federal budget. The regulation aims to promote consumer and business safety while fostering innovation within the financial sector. The government’s plan requires issuers of stablecoins to maintain adequate reserves, establish redemption policies, implement effective risk management systems, and safeguard user data, enhancing trust and accountability in the crypto ecosystem.