Canada's open banking reform is here, and it is related to the crypto world.

Recently, Canada has released its 2025 budget, with one core focus: breaking the monopoly of the six major banks (which hold 93% of the assets) and allowing user data to be self-controlled. What's the background? Open Banking allows consumers and third-party financial service providers to securely share financial data, enabling smaller financial institutions and fintechs to have a chance to compete.

Specific measures:
• Transfer fee prohibited (currently charged approximately 150 CAD per account)
• Simplify bank exchange process
• Full read access to be achieved by 2026, and write access (payment settlement) to be achieved by mid-2027.
• Improve the regulatory flexibility of small financial institutions

What is the most interesting part here? Stablecoins are included in the new regulations - issuers must hold sufficient high-quality reserves, have clear redemption policies, and risk management. The authorities clearly stated that stablecoins can supplement open banking for cross-border payments and settlements.

This round of reforms learned from the experiences of the UK and Australia, with the Bank of Canada taking over regulation (previously the Financial Consumer Agency of Canada, FCAC), making it friendlier for small fintech companies. In other words, small players now have a chance.