Overview
- The Department of Finance published the draft regulations in the Canada Gazette on Saturday, Oct. 24 and opened a 60-day consultation that runs until Dec. 23, 2026.
- Issuers would be required to back every coin one-to-one with high-quality liquid assets held in segregated accounts at qualified Canadian custodians so reserves are protected from issuer or custodian creditors.
- Holders must be able to redeem stablecoins at par with no minimum and issuers must complete redemptions within three business days, with redemption fees capped at 1% and limited daily redemptions allowed only when reserve-asset markets lack liquidity.
- The rules prohibit issuer-paid interest or yield while allowing transaction-based rewards, assign registration and supervision of non-bank issuers to the Bank of Canada, and set penalties up to C$10 million for very serious breaches.
- The proposal, which the government plans to bring into force in fall 2027, will raise operational and custody costs, could constrain foreign issuers and platforms that offer yield, and will require further consultation on reward rules, cross-border reciprocity and redemption mechanics.