Canada plans to prohibit financial institutions from directly issuing cryptocurrencies, with stablecoins required to be issued through independent non-financial subsidiaries.

November 10 - The Canadian government has announced a budget bill that will prohibit federally regulated financial institutions from directly issuing cryptocurrencies and require stablecoins to be issued only through independent non-financial subsidiaries regulated under stablecoin laws.

According to the budget bill announced on November 5 local time, issued cryptocurrencies must include reserve safeguards such as redemption at par value and asset segregation, while not being included in public deposit insurance and government guarantee programs. The Bank of Canada will be responsible for issuer registration and oversight and enforcement of regulatory compliance. Meanwhile, the stablecoin regulatory framework is expected to take effect next autumn.