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Canada tightens rules for crypto casinos

09 November 2026

Canada is tightening financial rules that affect crypto casinos, though the changes don't amount to nationwide legalization of cryptocurrency gambling. Instead, a new federal law, the Stablecoin Act (Bill C-15), and its accompanying framework regulate issuing and use of stablecoins used as digital currency rather than licensing gambling specifically.

The stablecoin framework establishes requirements for stablecoin issuers, not for operators offering gambling services. It sets standards for stablecoin issuers but does not license crypto casinos, says spokesperson Stephenie Stewart. It covers issuers, not gambling operators, Stewart confirms.

With no province currently licensing crypto casinos and no Canadian province allowing crypto payments on officially regulated casino sites, that means there is still no official recognition of such gambling. This confirms federal regulator FINTRAC's definition of gambling, beyond physical casinos, to cover gambling sites accessible through digital media, making them subject to money-laundering, identity-verification and record-keeping rules.

Transparency duty: Noting it as a reminder, FINTRAC expects casinos to provide documents that prove they hide nothing, like customer records, digital-session records, reports on unusual transactions, and data on large virtual-currency moves or e-transfers on its site.

This contrasts starkly with crypto casinos set up overseas, outside Canadian jurisdiction. It's not legally clear whether gambling on sites not registered with a Canadian regulator is a criminal act. FINTRAC's oversight does not extend past Canadian borders.

It goes like this: A player on an offshore, unlicensed crypto casino site cannot rely on Canadian regulators to step in and punish the casino operator or safeguard the player if there's a payment dispute. International arbitration for match-fixing, payment disputes or player complaints is not available with crypto betting.

"They've enshrined their live-casino licensing regimes in legislation; that's the basic form of gambling regulation in Canada," says Lucas Huang, an expert on Canadian gaming law at University of Toronto. "They haven't addressed the subject of cryptocurrency specifically. It's not documented that any of the provinces have established a certification scheme for blockchains and gambling, which is unusual, because they have for travel and tourism."

For Jennifer Bardot, 31, of Toronto, Ontario, crypto gambling is just what she calls a "smart and sophisticated" way to manage crypto assets.

"I don't think cryptocurrency is going away. I think we're going to see more cryptocurrencies become mainstream," says Bardot. "I think Canada will have to face the reality that cryptocurrency is a digital asset, that it's a form of payment, and they will have to find a way to regulate it in a way that makes sense for the 21st century."

The issue will keep developing, say experts. Public sentiment for allowing crypto gambling could shift if public concerns grow. Determining which agencies are responsible for crypto gambling and fraud will require significant coordination.

Financial policy leaders at Opposition New Democratic Party and Bank of Canada are being watched when it comes to gambling law reform pushing for stablecoin regulation.

"There may be a need for an expanded focus on digital assets and digital currencies more broadly, and that may take some broader work than just what is happening with stablecoins," says Bob Rae, deputy speaker of the House and a party member.