Tanim Rasul, the chief operating officer at Canadian cryptocurrency exchange NDAX, criticized Canada’s classification of stablecoins as securities in 2022. He emphasized the need for Canada to align its regulatory approach with other jurisdictions that view stablecoins as payment instruments. Rasul made these comments during a panel discussion at the Blockchain Futurist Conference in Toronto on May 13. He suggested that Canada should look at Europe’s regulatory framework, particularly the Markets in Crypto-Assets (MiCA) regulation, which treats stablecoins as payment instruments. The Canadian Securities Administrators (CSA) categorized stablecoins as “securities and/or derivatives” in December 2022, citing recent events in the crypto market. They further defined stablecoins as “value-referenced crypto assets” in subsequent clarifications in February and October 2023. Despite regulatory challenges, Canada’s digital asset market continues to thrive. According to Grand View Research, the Canadian crypto industry generated $224 million in revenue in 2024 and is expected to grow at a compound annual rate of 18.6% until 2030, reaching $617.5 million in annual revenue. Stablecoins, pegged to fiat currencies, have become a significant use case in the crypto space. The total market capitalization of stablecoins stood at $242.8 billion as of May 14, marking a 51.9% increase over the past 12 months. As stablecoins gain popularity globally, regulators worldwide are working on frameworks to govern their use. While most stablecoins are pegged to the US dollar, there is a growing demand for stablecoins linked to other fiat currencies. This trend underscores the need for clear and comprehensive regulatory guidelines to address the growing adoption of stablecoins in international finance.