Canada

OSFI released guidelines requiring federally regulated financial institutions to disclose climate-related risks and opportunities, including financed emissions (Scope 3), aligned with TCFD. Phased implementation starts with larger institutions.

Canada's Liberal government has proposed a ban on cryptocurrency ATMs to combat fraud and money laundering, following a FINTRAC analysis identifying them as a primary tool for scammers. The ban would eliminate all crypto ATMs in Canada, and lawmakers are also considering banning crypto for electoral donations.

Canada's Bill C-25, the Strong and Free Elections Act, which would ban cryptocurrency donations to federal political campaigns, has passed second reading with cross-party support and moved to committee review. Recipients must return illegal crypto contributions or remit them to the Receiver General within 30 days.

Canada's new Value-Referenced Crypto Assets (VCRA) regulations require crypto exchanges to delist non-compliant stablecoins by December 31, 2024. Circle's USDC has become the first stablecoin to achieve compliance with these rules, setting a precedent for the market. This regulatory change creates a compliance deadline for all stablecoin issuers and crypto exchanges operating in Canada.

Canada has amended Bill C-59 to revise greenwashing rules, addressing misleading environmental claims in sustainability disclosures. This regulatory change aims to enhance transparency and accountability in environmental reporting for Canadian companies, particularly in the energy sector, aligning with global ESG trends.

Canada has established leadership for its new sustainable finance taxonomy council, which will develop a classification system for sustainable economic activities to guide investment and combat greenwashing. This represents a significant step in formalizing ESG regulatory frameworks in Canada, affecting financial institutions and companies seeking sustainable investment.

Canada has launched the Taxonomy and Transition Planning Council to develop a sustainable finance taxonomy by the end of 2026. This taxonomy will categorize green and transition investments, enabling companies to issue green bonds and helping investors assess sustainable products, with sector-specific criteria and transition planning guidance.

Canada is implementing minimum wage increases across federal and provincial/territorial jurisdictions in 2026, with staggered effective dates throughout the year. The federal minimum wage will rise to $18.15/hour on April 1, 2026, while provincial rates vary, requiring employers to comply with the higher applicable wage. This creates compliance challenges for multi-jurisdictional operations, including payroll updates, wage compression management, and proactive audits.

Canada's Bill C-25, the Strong and Free Elections Act, proposes to ban cryptocurrency donations to political campaigns along with money orders and prepaid payment products. The bill addresses transparency concerns and includes penalties up to twice the contribution's value plus $100,000 for corporations, with 30-day deadlines for returning illegal contributions.