# Canada’s Stablecoin Draft Bars Interest but Allows Transaction Rewards By Riza Dagoc Canonical URL: https://www.tokenpost.com/news/regulation/41281 Published: 2026-10-26T20:04:58.000Z Updated: 2026-10-26T20:04:58.000Z Section: Regulation > 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. ## Links in this article - [three-business-day redemption process and fee limit](https://www.tokenpost.com/news/regulation/40795)