The Canadian government is pushing a plan to bar federally regulated financial institutions from directly issuing stablecoins.
According to Wu Blockchain, the 2026 federal budget plan recently released by the Canadian government also includes amendments to the Bank Act, the Trust and Loan Companies Act and the Insurance Companies Act.
The amendments would prohibit federally regulated financial institutions from directly issuing stablecoins. Instead, they would allow issuance only through non-financial subsidiaries regulated under the Stablecoin Act.
Canada plans to include foreign financial institutions that are not subject to domestic prudential supervision under its stablecoin regulatory scope. It is also reviewing measures to strengthen consumer protection in case a stablecoin issuer or custodian goes bankrupt.
The Stablecoin Act received royal assent in March. Implementation rules are still being consulted on publicly, and the law is scheduled to take full effect in 2027.
Chi-gyu Hwang
delight@d-today.co.kr