Canada Seeks Public Input on Stablecoin Rules for Non Bank Issuers

Ottawa has started a 60-day consultation on draft rules for companies that issue stablecoins without being financial institutions. The notice went out Saturday, and feedback will be accepted until December 23. The draft says it aims to line up with US and other international rules, so firms operating in several countries face less red tape.

Proposed Rules for Stablecoin Issuers in Canada

Under the draft, these issuers could not pay interest or yield, a measure meant to discourage people from simply holding the coins. They would have to honor redemption requests within three business days and could not charge more than 1% of the coin’s value. The rules sit under the Stablecoin Act passed in March, and issuers would need to register with the Bank of Canada before launching a token. The government is aiming for the rules to take effect in fall 2027.

How Canada Compares With the US and EU

The US GENIUS Act is due to start in January 2027. In Europe, MiCA could give exchanges until January to stop servicing stablecoins that fail to comply, a group that would likely include Tether’s USDT, the largest stablecoin by market cap.