Stablecoin Act updated to add pending amendments expanding Bank of Canada oversight and violation rules

Plain-language summary · AI-assisted · not legal advice

A set of amendments has been appended to the Stablecoin Act as provisions "not yet in force." These pending changes would repeal two existing sections dealing with stablecoin issuers, broaden the Bank of Canada's power to recommend ministerial prohibition orders against issuers who violate either the Stablecoin Act or specific Bank of Canada Act provisions, and extend the violation and penalty regime to cover contraventions of those same Bank of Canada Act provisions. The regulation-making power is also updated to allow violations to be designated across this wider set of rules. None of these changes are currently in force — they await a separate order bringing them into effect. Stablecoin issuers and their compliance teams should review the new cross-references to Bank of Canada Act sections 30.2–30.5 to understand the expanded scope of conduct that could trigger penalties or prohibition orders when the amendments do come into force.

Who this affects: stablecoin issuers · financial compliance officers · regulatory counsel advising fintech firms · Bank of Canada regulated entities