Canada Brings Stablecoins Under Bank of Canada Oversight After Bill C15 Becomes Law

Finance Canada said Bill C15 has received Royal Assent, clearing the way for a federal regime to regulate stablecoins and place the sector under closer supervision by the Bank of Canada. Officials are positioning fiat-backed stablecoins as part of Canada's payments and financial-market infrastructure, seeking to encourage digital-payment innovation while protecting consumers and safeguarding financial stability. Under the proposed framework, issuers of fiat-backed stablecoins would be required to register with the Bank of Canada and meet ongoing supervisory expectations. The rules would apply to both Canadian and foreign issuers that operate in the country, meaning widely used offshore stablecoins could also be captured. Policy documents indicate the central bank would monitor compliance, while the Department of Finance would lead rulemaking and legislative development. The framework sets out strict standards for reserves and redemption. Issuers would have to maintain a fully backed 1:1 reserve in cash or high-quality liquid assets, segregated from corporate funds. They would also be required to redeem stablecoins at par into the referenced fiat currency, aiming to reduce risks tied to undercollateralized or opaque backing. Restrictions would also govern how stablecoins are marketed and distributed. Issuers would be barred from paying interest or offering yield on holdings and would be required to avoid presenting stablecoins as bank deposits or legal tender. Governance, risk management, and data-security requirements would apply, alongside anti-money laundering compliance obligations. Although the legislation has now passed, implementation will be staged. Authorities expect regulatory work and consultations to continue over the next 12 to 18 months, with full rollout targeted for 2027. Canada's approach tracks a broader international shift to formalize stablecoin oversight, following regulatory developments in the United States and the European Union. By standardizing requirements and introducing central-bank supervision, Canada is moving to treat stablecoins as regulated financial instruments while supporting new payment use cases, including cross-border transfers, and limiting risks to consumers and the wider financial system. Final Summary: Canada's stablecoin framework would subject issuers to Bank of Canada oversight, marking a move toward regulated digital payment infrastructure. The plan aligns with global efforts to standardize stablecoin rules, with full implementation expected by 2027.