Canada Plans to Expand Stablecoin Regulatory Scope, Requiring Banks to Issue Stablecoins Through Non-Financial Subsidiaries

According to TechFlow, on November 10, the Canadian government’s 2026 Federal Budget outlined plans to further refine the stablecoin regulatory framework, requiring federally regulated financial institutions to issue stablecoins through non-financial subsidiaries regulated under the Stablecoin Act, and extending the scope of the relevant law to foreign financial institutions not subject to Canadian prudential regulation.

The budget also proposes that the government continue studying consumer protection measures in the event of bankruptcy involving stablecoin issuers or custodians, to strengthen market transparency and regulatory consistency.

In addition, Canada plans to advance payment system modernization and introduce relevant legislation to combat illegal cryptocurrency ATMs and financial crime. The above stablecoin measures are part of follow-up regulatory arrangements proposed in the budget and remain subject to further implementation.

Source: TechFlow