The Government of Canada tabled its 2025 federal budget on November 4, introducing a broad package of reforms aimed at modernizing financial sector regulation, strengthening consumer protections and enhancing the country’s response to financial crime. The measures, many of which will require new legislation, represent one of the most significant updates to the financial regulatory landscape in recent years.
A major focus of Budget 2025 is the creation of a national regulatory framework for fiat-backed stablecoins. The proposed legislation, to be administered by the Bank of Canada, would introduce reserve, custody and operational requirements for issuers, along with clear redemption policies, risk-management expectations and protections for personal and sensitive information. The federal government has not yet clarified how this framework will align with the current position of provincial securities regulators, which treat stablecoins—or value-referenced crypto assets—as securities or derivatives. Related amendments to the Retail Payments Activities Act would also bring payment service providers using stablecoins under federal oversight.
The budget reaffirms Ottawa’s commitment to consumer-driven banking. The government plans to accelerate the next phase of open banking implementation and introduce “write access” capabilities, such as streamlined account switching and bill payments, by mid-2027. Oversight of the Consumer-Driven Banking Act will fall to the Bank of Canada.
The budget also confirms the creation of a new Financial Crimes Agency, intended to serve as a national enforcement body for money laundering, organized crime and online fraud. Legislation is expected by spring 2026. A National Anti-Fraud Strategy will also be launched, involving coordination among financial institutions, technology companies and telecommunications providers.
Additional changes include expanded consumer protections under the Bank Act, new reporting requirements for financial institutions, measures to support the growth of federal credit unions and updates to Canada’s anti-money laundering and anti-terrorist financing regime. The government also plans to explore the responsible adoption of artificial intelligence within the financial sector.
Budget 2025 signals a period of regulatory transformation, with financial institutions, fintechs and payment service providers expected to begin preparing for wide-ranging compliance changes once legislation is introduced.
