Stablecoins Must Be Issued Through Independent Non-Financial Subsidiaries as Canada Moves to Ban Financial Institutions from Directly Issuing Crypto

Odaily reports: The Canadian government has unveiled a budget bill that would prohibit federally regulated financial institutions from directly issuing cryptocurrencies and require that stablecoins be issued only through independent non-financial subsidiaries regulated under relevant laws. The bill requires that issued cryptocurrencies have reserve safeguards such as redemption at par value and asset segregation, and that they not be included in public deposit insurance or government guarantee programs. The Bank of Canada will be responsible for overseeing and enforcing issuer registration and regulatory compliance, with the stablecoin regulatory framework expected to take effect next fall.