The Canadian government published a draft Stablecoin Regulation in the Canada Gazette on Oct. 24, according to ChainCatcher. The proposal would require regulated stablecoin issuers to let eligible holders redeem tokens at par value, without setting a minimum redemption amount. Issuers would also need to process redemption requests within three business days, while redemption fees could not exceed 1%.
The draft also sets reserve and yield restrictions. Issuers would be required to maintain at least 1:1 qualifying reserve assets. They would also be barred from offering interest or other returns tied to holding the stablecoin, whether directly or through a third party. If reserve asset markets face insufficient liquidity, issuers could limit daily redemption volumes under specified conditions.
The rules are now in the public consultation stage and are scheduled for implementation in the fall of 2027.
Canada put out a draft Stablecoin Regulation in the Canada Gazette on Oct. 24, according to ChainCatcher.
Under the proposal, regulated stablecoin issuers would have to let eligible holders redeem at par value. No minimum redemption thresholds. Issuers would also need to finish redemption processing within three business days after getting a request, and redemption fees would be capped at 1%.
But if reserve asset markets run into insufficient liquidity, issuers could limit daily redemption volumes in specific situations. The draft also says issuers must keep at least 1:1 in qualifying reserve assets, and it bars them from offering interest or yield linked to holding the stablecoin, whether directly or through a third party.
The rules are now in the public consultation stage and are set to take effect in the fall of 2027.
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