Canada Unveils Stablecoin Regulation Framework in Budget 2025

Canada is introducing its first national framework for regulating fiat-backed stablecoins, a significant step towards formalized oversight of digital payments. The initiative outlined in the federal Budget 2025 aims to enhance consumer protection, financial stability, and trust within the growing landscape of digital currencies. The legislation mandates that stablecoin issuers maintain sufficient reserves, implement clear redemption policies, and adopt robust risk management frameworks. These measures include data security safeguards and national security measures to ensure financial system integrity.