Canada Publishes Stablecoin Regulatory Draft and Launches a 60-Day Public Consultation
BIBIBI
AT A GLANCE
Canada publishes a stablecoin regulatory draft proposing to prohibit issuers from paying returns to holders and establishing reserve, custody, and redemption requirements.
Article
Canada Releases Stablecoin Regulatory Draft, Prohibiting Issuers from Paying Returns
PANews October 27 reported, citing CoinDesk, that the Canadian government published a draft of the Stablecoin Regulations and launched a public consultation lasting 60 days, with a deadline of December 23. The draft prohibits issuers from paying interest or returns to holders directly or through third parties, but allows usage-related rewards; non-bank issuers must hold reserves no less than the amount in circulation and place them with a qualified Canadian custodian; issuers must complete redemptions within 3 business days, with no minimum redemption amount and a cap on redemption fees of 1%. The draft is intended to implement the Stablecoin Act passed this year and is scheduled to take effect in the fall of 2027🔗https://www.panewslab.com/zh/articles/01a17923-6236-71d8-8a24-36a917128095
Key points
01
According to PANews, citing CoinDesk, the Canadian government published a draft of the Stablecoin Regulations.
02
The draft launches a public consultation lasting 60 days, with a deadline of December 23。
03
The draft prohibits issuers from paying interest or returns to holders directly or through third parties, but allows usage-related rewards.
04
Non-bank issuers must hold reserves no less than the amount in circulation and place them with a qualified Canadian custodian.
05
Issuers must complete redemptions within 3 business days, with no minimum redemption amount and a cap on redemption fees of 1%。
06
The draft is intended to implement the Stablecoin Act passed this year and is scheduled to take effect in the fall of 2027.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
If subject to the draft, stablecoin issuers will not be able to attract holders with interest or returns, but may still provide usage-related rewards. Non-bank issuers will also need to maintain sufficient reserves, use qualified Canadian custodians, and comply with redemption deadlines and fee caps. The document remains a draft and is currently undergoing public consultation.
Why it matters to readers
The draft directly establishes whether stablecoins may pay returns, how reserves must be held, and the speed and cost of user redemptions. These rules will affect issuers’ operating methods and the benefits available to holders.
Beginners need to distinguish between earning interest or returns by holding stablecoins and receiving rewards for usage; the draft proposes to prohibit the former but allow the latter. The redemption rules also concern how long it takes to recover funds and the maximum fee that may be charged.
Risks and unknowns
The report did not include a link to the Canadian government announcement or the original draft text; the specific provisions still need to be verified against the official text.
The draft is still undergoing public consultation, and it remains unclear whether the final rules will be amended.
Not specified by the evidence October 27、December 23 or the year corresponding to “this year.”
The evidence does not specify which rewards would be considered “usage-related.”
Related Developments
Loading event timeline…
The evidence does not provide the specific criteria for determining qualified Canadian custodians.
Related concepts
Stablecoin
An asset that seeks to track a reference value and is subject to risks including depegging, reserves, and redemption.
