Add as a preferred source on GoogleCanada’s Stablecoin Draft Bars Interest but Allows Transaction Rewards
Covered issuers would need daily reserves at least equal to outstanding stablecoins, and redemption fees could not exceed 1% of the amount redeemed.
The Department of Finance Canada’s proposed stablecoin rules would bar issuers from paying holders interest while permitting transaction-linked rewards, drawing a line between interest payments and incentives tied to activity.
The interest restriction would apply to payments made directly by an issuer or through a third party. The proposal would cover issuers that are not prudentially regulated financial institutions. They would need reserve assets worth at least the value of outstanding fiat-pegged stablecoins at the end of each day, held at eligible Canadian financial institutions.
The draft would require redemptions within three business days and cap fees at 1% of the redeemed amount, setting a three-business-day redemption process and fee limit.
The Department of Finance Canada opened a 60-day public consultation on the proposal. It closes Dec. 23. Canada aims to bring the proposed regulations and the Stablecoin Act into force in fall 2027.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.