Canada proposes restrictions on stablecoin rewards and redemptions
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Canada has opened a 60-day consultation on proposed regulations for stablecoin issuers outside the financial sector. The government will accept public comments until 23 December.
The draft rules would prohibit these issuers from paying interest or yield on stablecoins, require redemption within three business days and cap redemption fees at 1% of the amount redeemed.
The proposals would implement Canada’s Stablecoin Act, passed in March, and require issuers to register with the Bank of Canada. The government said the framework aims to align Canadian rules with those in the US and other jurisdictions.
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