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Canada’s crypto policy may have taken a wrong turn — at least according to one of the country’s top exchange executives.
Stablecoins ≠ Securities?
Tanim Rasul, COO of Canadian crypto exchange NDAX, called out regulators during a panel on May 13 at the Blockchain Futurist Conference in Toronto.
He criticized Canada’s move to classify stablecoins as “securities and/or derivatives,” a decision made in December 2022, shortly after the collapse of FTX.
“Look at MiCA,” Rasul urged, referencing Europe’s Markets in Crypto-Assets framework. “They treat stablecoins as payment instruments — and Canada should too.”
Regulatory fallout continues
The Canadian Securities Administrators (CSA) doubled down on the stablecoin classification in updates issued throughout 2023, calling them “value-referenced crypto assets.”
That definition has spooked major players. Binance, OKX, Bybit, Paxos, and Gemini have either pulled out or scaled back in Canada.
Even with the tightening grip, crypto hasn’t stopped growing in the Great White North. Canada’s crypto market pulled in $224 million in 2024 and is expected to hit $617.5 million by 2030, according to Grand View Research.
The stablecoin surge
Why all the fuss? Because stablecoins — cryptocurrencies pegged to fiat currencies like the US dollar — are becoming crypto’s go-to utility.
The stablecoin market cap has soared to $242.8 billion as of May 14 — up over 51% in just one year, per DefiLlama.
Regulators worldwide are racing to adapt. And while the US and EU are leaning toward payment-focused rules, Canada might be standing alone in its securities stance.
That leaves one big question: Will Canada rethink before it’s too late?
