Canada Fast-Tracks Stablecoin Rules Ahead of November 4 Budget

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Canada’s crypto scene is heating up and the government is leading the charge.

Ottawa is moving fast to bring stablecoin regulations to the table, with details expected in the federal budget on November 4, just days after a record-breaking $126 million fine hit a crypto company for anti-money laundering violations.

Here’s what you should know.

Stablecoin Rules Finally on the Way

According to Bloomberg , officials have spent the past few weeks in intense talks with regulators and industry leaders to finalize how stablecoins will be governed in Canada. The discussions are expected to result in clear regulatory proposals when Finance Minister François-Philippe Champagne presents the new budget next week.

Stablecoins are seen as a key bridge between digital assets and mainstream finance. But in Canada, the rules have been unclear. Regulators currently treat stablecoins as securities or derivatives, creating uncertainty for companies and investors.

Meanwhile, the US has already taken a major step forward.

The Genius Act , passed in July, gave US regulators the authority to supervise stablecoin issuers and set reserve standards. The law treats compliant stablecoins as payment instruments, a move the crypto industry has largely welcomed.

Also Read: Crypto Regulations in Canada 2025

Experts Warn of Capital Flight

Industry leaders are urging Canada to act quickly or risk falling behind. John Ruffolo, founder of Maverix Private Equity, warned that if the government doesn’t move soon, Canadian investors may shift to US stablecoins, which could hurt demand for Canadian bonds and weaken local financial control.

“Every Canadian who transacts in a US stablecoin funds American debt, enriches American institutions and exports our financial data south,” Ruffolo wrote earlier this month.

Even the Bank of Canada and the Office of the Superintendent of Financial Institutions (OSFI) have called for a national framework to close the gap.

Former deputy governor Carolyn Wilkins said Canada needs rules that build “trust, security, stability and competitiveness” in the payments space.

Crackdown Sets the Tone

Just last week, FINTRAC, Canada’s financial watchdog, fined Cryptomus (Xeltox Enterprises Ltd) a record $126 million for 2,593 anti-money laundering violations – the largest fine ever issued in Canada’s crypto sector.

Investigators found the company failed to report suspicious transactions linked to child abuse, ransomware, and Iran-related transfers. The operations traced back to Uzbekistan and Spain.

FINTRAC said the company’s weak systems “significantly impair transparency and accountability,” adding that Canada’s crypto sector still has major gaps criminals can exploit.

After years of hesitation, Canada appears ready to tighten enforcement and draft long-awaited rules.