Summary
- The Canadian government said it plans to include a stablecoin regulatory proposal in the federal budget on November 4.
- The main points are whether to classify stablecoins as securities or derivatives and measures to prevent capital outflows to dollar-based stablecoins.
- The industry pointed to the possibility of Canadian capital flowing to the U.S. due to lack of regulatory clarity and emphasized the need for prompt regulatory arrangements.
The Canadian government is accelerating the establishment of a stablecoin regulatory framework and is reportedly planning to include related content in the federal budget to be announced on November 4.
On the 27th (local time), Bloomberg reported that the Canadian government plans to include stablecoin-related content in the federal budget to be announced on November 4. The main issues are whether to classify stablecoins as 'securities' or 'derivatives', and measures to prevent capital outflows to dollar-based stablecoins.
The industry has been consistently calling for clear legal standards. John Ruffolo, co-chair of the Canadian Innovators Council, urged prompt regulatory reform, saying, "Regulatory delay could weaken demand for Canadian government bonds, lead to higher interest rates and reduce the central bank's control over money supply." He warned, "If domestic regulatory clarity is lacking, Canadian capital may flow to U.S. markets."
Currently in Canada, stablecoins have sometimes been classified as securities or derivatives without separate legislation, and a clear legal definition is absent.
Canada's regulatory push comes as global competition over stablecoins intensifies. The European Union (EU) is already implementing issuer requirements under the 'MiCA' regulation, and major Asian economies such as Japan and Hong Kong are also accelerating policy adjustments.
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
