Canada accelerates the regulation of stablecoins and may announce new rules in the federal budget

ChainCatcher news, according to informed sources, Canada is in discussions regarding stablecoin regulatory rules and may announce a significant update in the federal budget to be released next week. These sources indicate that government officials have been in deep discussions with regulators and industry participants for weeks.

It is reported that Canadian Finance Minister Chrystia Freeland will address this topic in the budget documents to be released on November 4. In July of this year, the United States passed the "Genius Act," which authorizes financial regulators to oversee stablecoin issuers and their reserve management practices, and requires 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 indicated that stablecoins may constitute securities or derivatives. Some experts believe they should be regulated as payment instruments and subjected to strict oversight.