Canada publishes draft stablecoin regulations, bars issuers from paying yield

Oct. 27: According to CoinDesk, the Canadian government has published draft Stablecoin Regulations and launched a 60-day public consultation, with a deadline of Dec. 23. The draft prohibits issuers from paying interest or yield to holders, directly or through third parties, but allows usage-related rewards; non-bank issuers must hold reserves no less than circulating supply, deposited with a qualified Canadian custodian; issuers must complete redemptions within 3 business days, with no minimum redemption amount, and redemption fees capped at 1%. The draft is intended to implement the Stablecoin Act passed this year and is planned to take effect in fall 2027.