Canada’s 2026 federal budget proposes requiring federally regulated financial institutions to issue stablecoins through non-financial subsidiaries regulated under the Stablecoin Act, according to a TechFlow report published on November 10, 2026, at 09:44:08 UTC+8.
The proposed framework would also bring foreign financial institutions that are not subject to Canadian prudential supervision within the scope of the relevant legislation.
Consumer protection and implementation
According to the report, the government will continue examining consumer protections in the event that a stablecoin issuer or custodian becomes insolvent, with the aim of improving market transparency and regulatory consistency.
The budget also outlines plans to modernize payment systems and pursue legislation targeting illegal cryptocurrency ATMs and financial crime.
The stablecoin measures are proposed follow-up regulatory arrangements in the budget and still require further implementation. The report does not describe them as requirements already in force.
Source: TechFlow’s original report.