The regulation of stablecoins in Canada is in flux. As the crypto asset market awaits the coming into force of the Stablecoin Act (Canada), which will regulate the issuance of fiat-backed stablecoins by non-financial-institutions, and the publication of related regulations, the regulation of activities relating to stablecoins in Canada continues to be carried out predominantly by securities regulators.
Public guidance indicates that securities regulatory staff expect firms engaged in the business of trading in stablecoins, such as Canada’s registered crypto asset trading platforms (CTPs), to be registered as dealers or rely on an exemption from registration, which has generally meant one founded in published rules. Now, a recently published relief decision of the Ontario Securities Commission (OSC) provides a new pathway to regulated trading, without a Canadian registration, that may be attractive to firms in the business of trading in stablecoins.
