Key facts
- Canada is consulting on stablecoin regulations for non-financial institutions.
- Proposed rules would restrict yield payments on stablecoins.
Canada's government is seeking public input on proposed regulations for stablecoins issued by non-financial institutions, aiming for consistency with international frameworks like the US GENIUS Act. The rules, expected to take effect in fall 2027, would restrict yield payments and require redemption within three business days.
Canada's proposed stablecoin regulations signal a move towards greater oversight of digital assets, potentially impacting how stablecoins are used and offered within the country, and aligning with global regulatory trends.
The Canadian government has initiated a 60-day public consultation period, ending December 23, on proposed regulations for stablecoins issued by non-financial institutions. This initiative is part of the potential implementation of Canada's Stablecoin Act, passed in March. The proposed framework aims to align with international regulations, including the US GENIUS Act and the EU's Markets in Crypto Assets (MiCA) framework. Key provisions include restricting issuers from offering yield payments on stablecoins and requiring redemption of tokens within three business days, with a fee cap of 1%. The government intends for these regulations to take effect in the fall of 2027, at which point non-financial institution issuers will need to register with the Bank of Canada.
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