Crypto Law Profile
Canada’s Stablecoin Act creates a federal framework for fiat-backed stablecoin issuers, with Bank of Canada registration, reserves, redemption, disclosure, AML/ATF and enforcement provisions. Enacted but not yet in force.
Canada’s Stablecoin Act is a federal statute for fiat-backed stablecoin issuance. It was enacted through Division 45 of Part 5 of Bill C-15, the Budget 2025 Implementation Act, No. 1, and received Royal Assent on March 26, 2026. As of June 3, 2026, the Act has been enacted but its operative provisions are not yet in force; the Justice Laws version states that the Act will come into force on a day or days fixed by Governor in Council order.
The Act defines a stablecoin as a digital asset designed to maintain a stable value relative to one fiat currency. Its main focus is issuance by non-financial institution issuers whose stablecoins have, or could reasonably be expected to have, interprovincial or international applications. The framework does not apply to closed-loop stablecoins, central bank issuers, or financial institutions unless regulations change the scope. The Department of Finance states that the framework applies to domestic and foreign issuers that make fiat-backed stablecoins available to Canadians and does not distinguish between Canadian-dollar and foreign-currency stablecoins.
The Act creates a Bank of Canada registry for issuers. A person may not issue an in-scope stablecoin unless it complies with the Act and is listed on the Bank’s public registry. Applications must include ownership, organizational, technology, redemption, reserve, financial, governance, risk management, data security, and recovery and resolution information.
The Bank of Canada’s role includes registering issuers, supervising compliance, monitoring issuance and redemption risks, and taking enforcement action when obligations are not met. FINTRAC states that stablecoin issuers will also be required to register as money services businesses dealing in virtual currency, with guidance updates expected as regulations are developed. The Act also allows the Minister of Finance to review applications and use specified powers for national security or public-interest reasons.
The Stablecoin Act does not replace every Canadian crypto rule that may apply to stablecoins. The Department of Finance says securities regulators will continue to oversee exchange and trading activity on securities exchanges and crypto trading platforms, while the Bank of Canada may supervise payment service providers that perform payment functions using prescribed fiat-backed stablecoins under the Retail Payment Activities Act. That layered structure means the Act is best understood as an issuer framework, not a complete stablecoin market code.
The Stablecoin Act is enacted but implementation depends on regulations and one or more coming-into-force orders. The Department of Finance has said draft regulations will be published in the Canada Gazette once completed. Its March 2026 framework page expected development to continue for 12 to 18 months from early 2026, with the framework coming into force in 2027. That timing should be treated as policy guidance rather than an effective date until an official order or regulation is published.
The Act moves Canada toward a federal payments-oriented framework for fiat-backed stablecoin issuance while preserving the role of securities regulators for trading and exchange activity. It is designed to sit alongside the Retail Payment Activities Act, provincial securities law, and federal anti-money laundering rules. For CryptoSlate readers, the most important distinction is status: the statute exists, but regulated issuer obligations will depend on the final regulations and formal commencement.
Issuers must apply to the Bank and may not issue in-scope stablecoins unless compliant and listed on the public registry.
The Act covers stablecoins designed to maintain value against one fiat currency with interprovincial or international use; exclusions include closed-loop coins, central banks and financial institutions.
Issuers must redeem at par in the reference currency and maintain reserves at least equal to outstanding stablecoins, using reference currency or high-quality liquid assets.
Issuers must maintain governance, risk, data security, and recovery/resolution policies and provide accountant/lawyer-backed reports, including monthly reserve information.
Issuers cannot pay interest or yield on stablecoins and cannot represent them as legal tender, deposits, insured, guaranteed or government-backed.
Issuers are treated as virtual-currency money services businesses under AML law; Bank and ministerial powers include requests, undertakings, conditions, directions and penalties.
Budget 2025 proposed a federal framework for fiat-backed stablecoins.
Budget 2025 Implementation Act, No. 1 was introduced in the House of Commons.
Bill C-15 completed third reading in the House of Commons.
Bill C-15 completed third reading in the Senate.
Bill C-15 received Royal Assent, enacting the Stablecoin Act as S.C. 2026, c. 3, s. 600.
Finance Canada published next-step guidance for regulations after Royal Assent.
Crypto trading platforms, Payment service providers, Stablecoin issuers
Fiat-backed stablecoins, Stablecoins
As of 2026-06-03, Justice Laws lists the Stablecoin Act as enacted but not in force. Implementation depends on one or more Governor in Council orders and supporting regulations.
