The two nations are preparing to introduce specific regulations for stablecoins, following the example set by the United States.
Canada is set to implement its regulatory framework for stablecoins through the 2025 federal budget. The move comes just months after the approval of the U.S. GENIUS Act last July.
According to the budget document released on November 4, the new legislation will require stablecoin issuers to meet several conditions: maintaining adequate reserves, ensuring transparent redemption policies, and establishing solid risk management systems – including protections for users’ personal and financial data.
The stated goal is to strengthen trust in digital payment systems and provide operational clarity to issuers operating within Canada’s expanding crypto market.
The Bank of Canada has allocated $10 million over two years, starting in fiscal year 2026–2027, to oversee the implementation of the new regulatory framework. Annual supervision costs, estimated at around $5 million, will later be recovered from regulated issuers under the Retail Payment Activities Act.
Meanwhile, the Bank of England is preparing to unveil its stablecoin regulatory regime on November 10, according to Bloomberg. Deputy Governor Sarah Breeden dismissed concerns that the U.K. is falling behind the U.S. in stablecoin oversight, stating that the new British regulations will become operational “as quickly as those in the U.S.”
The upcoming proposals will initially include temporary limits: up to £20,000 ($26,000) for individuals and £10 million for businesses. According to Breeden, the need for stricter limits in the U.K. stems from the fact that the British mortgage market is primarily bank-based, making it more vulnerable to rapid deposit shifts toward stablecoins.
The new rules will initially apply only to “systemic” stablecoins – those expected to be widely used for payments – while other stablecoins will remain under the jurisdiction of the Financial Conduct Authority (FCA), which will apply a lighter regulatory regime.
