Canada accelerates stablecoin regulation, new rules may be announced in federal budget

Jinse Finance reported that, according to informed sources, Canada is currently negotiating regulatory rules for stablecoins and may announce a major update in the federal budget to be released next week. These sources stated that government officials have been engaged in in-depth discussions with regulators and industry participants for weeks. It is reported that Canadian Finance Minister Chrystia Freeland will address this topic in the budget document to be released on November 4. In July this year, the United States passed the Genius Act, authorizing financial regulators to oversee stablecoin issuers and their reserve management methods, and requiring issuers to comply with anti-money laundering and sanctions evasion regulations. This new law has been welcomed by many in the crypto industry. However, in Canada, due to the lack of relevant legislation, regulators have stated that stablecoins may constitute securities or derivatives. Some experts believe that they should be regulated as payment instruments and placed under strict supervision.