The Canadian Department of Finance released draft regulations for stablecoins on October 24, 2026, initiating a 60-day public consultation period ending December 23, 2026. These rules fall under the Stablecoin Act, which was enacted via Bill C-15 on March 26, 2026.
The framework mandates that non-bank issuers of fiat-backed stablecoins with interprovincial or international reach must register with the Bank of Canada. Issuers are required to maintain daily reserves in high-quality liquid assets held by Canadian custodians, matching the value of outstanding tokens.
Under the proposal, stablecoins must be redeemable at par within a three-business-day window, with a 1% fee cap for small holders. The regulations explicitly prohibit passive yield payments for holding tokens, though transaction-based rewards remain permitted.
Banks and prudentially regulated financial institutions are exempt from these specific requirements, as they operate under existing supervisory frameworks. The new rules are projected to take effect in the fall of 2027, with approximately 30 crypto firms expected to register as payment service providers.
