Canada’s Stablecoin Rules Put USDC and USDT Under New Pressure
Photo: ETHNews
Canada proposes stricter stablecoin rules starting in fall 2027. Foreign issuers may face new reserve custody requirements. Holding-based yield remains banned, while transaction rewards are permitted. Redemption fees are capped at 1%, with a three-business-day deadline. Canada’s proposed stablecoin framework could force major issuers such as Circle and Tether to reconsider how they structure reserves, distribute tokens and serve customers in the country. Published in the Canada Gazette on October 24 , the draft regulations would require qualifying issuers to maintain fully backed reserves with Canadian financial institutions, provide redemption within three business days and stop paying interest linked to…
Source: ETHNews
