Canada Announces Stablecoin Framework In Latest Bill

Importantly, the proposed regulations will split the oversight into issuance and activities (as seen in the diagram above). This also looks to limit the amount of newer directives that could clash with existing regulators continuing to regulate any stablecoin-related activities coming out of banks and credit unions.

Local currency stablecoins denominated in CAD (Canadian Dollars) will be treated the same as foreign-backed stablecoins, and most reserve criteria follows existing requirements across the U.S. and Europe (1:1 backing with cash and cash equivalent assets, short-term dated bonds/treasuries), as well as very transparent rules for redemptions.