The Canadian government has launched a 60-day public consultation regarding a new regulatory framework for stablecoin issuers that are not financial institutions. This initiative is part of the implementation of the Stablecoin Act, which was passed in March. The public comment period will remain open until December 23.
The proposed rules include a potential ban on yield payments to discourage token holding. Issuers would be required to process redemption requests within three business days and cap redemption fees at 1% of the total token value. Additionally, non-financial issuers must register with the Bank of Canada before issuing stablecoins.
The government aims to align these regulations with international standards, specifically citing the US GENIUS Act to reduce the regulatory burden for multi-jurisdictional issuers. The proposed regulations are expected to come into force in the fall of 2027, following the US framework's scheduled implementation in January 2027.
