How are stablecoins regulated in Canada?

Stablecoin regulation in Canada is moving from securities regulators to the central bank. Today, the Canadian Securities Administrators (CSA) set the terms for which stablecoins registered crypto trading platforms can list. The new Stablecoin Act gives the Bank of Canada the job of registering and supervising issuers once its rules are in place. For the wider regulatory picture, see how crypto is regulated in Canada.

What is the Canada Stablecoin Act?

The Stablecoin Act was part of Bill C-15, the Budget Implementation Act, 2025, No. 1, which received Royal Assent on March 26, 2026. According to law firm Fasken, it applies to entities that create fiat-backed stablecoins and make them available to people in Canada, whether the issuer is Canadian or foreign.

Issuers must register, hold a 1:1 reserve of high-quality liquid assets in the stablecoin's reference currency, and have a redemption policy that pays out at par. They also need policies on governance, risk management, data security, and recovery and resolution.

What does the Bank of Canada do in stablecoin regulation?

The Bank of Canada says it will regulate non-financial institutions that issue stablecoins to Canadians. Its job is to register issuers, supervise their compliance, monitor and reduce risks around issuance and redemption, and take enforcement action. The Department of Finance leads work on the detailed regulations, with the Bank's support.

Fasken notes that the full framework will take several years to build and bring into force. As of October 2026, the Bank has not published a registration timeline.

What are value-referenced crypto assets in Canada?

This is the term securities regulators use for stablecoins. A value-referenced crypto asset, or VRCA, is designed to keep a stable value by referencing a fiat currency or another value. Under CSA Staff Notice 21-333, issued in October 2023, platforms may only offer a narrower group called fiat-backed crypto assets. These must:

• Track the Canadian or US dollar one for one.
• Hold reserves in that currency in cash, short-term government debt or eligible money market funds, with a qualified custodian.
• Let holders with an issuer account redeem one for one.
• Publish monthly assurance reports and annual audited financial statements.

The issuer also files an undertaking with the CSA. The regulators extended the deadline for non-compliant coins to October 31, 2024. They stress that meeting these terms does not mean they endorse or guarantee a coin.

To understand the tokens themselves, read what is a stablecoin, or see how the US approached the same issue in what is the GENIUS Act.

Rules differ by country and change often. Check the regulator or a qualified professional for your own situation.