Toronto, May 14 - Despite Canada classifying stablecoins as securities in December 2022, the country's crypto market continues to flourish. This decision followed the collapse of FTX a month prior. The local crypto industry generated $224 million in revenue in 2024.
The Canadian Securities Administrators (CSA) further elaborated on stablecoin rules in February and October 2023. These rules placed stablecoins under the umbrella of "value-referenced crypto assets." Consequently, several major crypto companies, including Binance and Gemini, scaled back or exited the Canadian market.
Despite these regulatory setbacks, the Canadian crypto market is projected to reach $617.5 million in annual revenue by 2030. This represents a compound annual growth rate of 18.6%. As of today, May 14, the market capitalization for all stablecoins is $242.8 billion, a 51.9% increase over the past year.
Tanim Rasul, COO of NDAX, argued on May 13 at the Blockchain Futurist Conference that Canada should reconsider its approach. He suggested looking at Europe's MiCA framework, which regulates stablecoins as payment instruments. Nation-states are increasingly working on stablecoin regulations to address their rising global usage.
While most stablecoins are pegged to the U.S. dollar, demand exists for those pegged to other fiat currencies.
This article is based on our author's analysis of materials taken from the following resource: Cointelegraph.