According to CoinDesk, Canada has opened a formal consultation on its draft stablecoin rules and confirmed that it continues to prohibit the offering of yields on stablecoins. The consultation allows stakeholders to provide input before finalizing the framework.
Under the draft rules issued by regulators, non-bank entities that issue stablecoins are required to fully back each token with equivalent reserves held at institutions that meet qualification criteria in Canada. Redemptions of stablecoin tokens must be settled within three business days of request.
The move follows ongoing efforts to clarify regulatory expectations for digital monetary instruments while addressing concerns related to financial stability, consumer protection, and compliance with existing policy boundaries. The government emphasized that the consultation phase is intended to gather diverse perspectives prior to rule finalization.
