Canada’s about to unveil new stablecoin regulations next week as the government scrambles to keep up with the US. Officials have been meeting with policymakers, regulators, and crypto industry leaders for weeks, and Bloomberg’s sources say the proposals will drop in budget documents on November 4th.
The rush comes because America’s GENIUS Act basically set the global standard for stablecoin regulation, sparking massive adoption. Since it passed, huge companies like JPMorgan, Citi, Amazon, and Walmart all announced plans for their own stablecoins. USD tokens now make up 99% of the $316 billion stablecoin market.
John Ruffolo from the Council of Canadian Innovators warns that Canada risks serious capital flight to the US if they don’t get clear rules fast. He estimates if just 5% of Canada’s $135 billion in bank deposits flows south, it could wipe out nearly $700 billion in local bank lending capacity.
Meanwhile in Australia, crypto companies are complaining that proposed digital asset laws are way too vague. The framework would extend financial regulations to digital assets and create two new platform types requiring licenses, but industry leaders say critical questions remain unanswered.
Caroline Bowler from BTC Markets said the draft leaves too much discretionary authority with Treasury, letting them impose fundamental changes based on interpretation. Violations carry penalties up to $10.8 million or 10% of annual turnover.
Conclusion
Canada is unveiling stablecoin regulations on November 4th to prevent capital flight, while Australian crypto firms criticize proposed digital asset laws as excessively vague with unclear regulatory authority.
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