The Canadian government published draft stablecoin regulations on October 24, opening a 60-day consultation period ahead of their planned entry into force in fall 2027. Issuers must maintain reserves equal to 100% of the stablecoins outstanding, held with Canadian custodians in accounts protected from creditors, and must redeem them within three business days for fees capped at 1%. They will be prohibited from paying interest or offering direct or indirect yield to holders, although they may retain the income earned on their reserves. The Bank of Canada will register and supervise issuers, with penalties reaching C$10 million for the most serious violations, including inadequate reserves or redemptions below face value.
Source: Read the original article
