Canada opens consultation on draft stablecoin rules, maintains ban on yields
Summary
Canadian regulators have launched a public consultation regarding new guidelines for stablecoins. The proposed framework requires non-bank issuers to maintain full reserve backing at approved financial institutions and process redemptions within a specific timeframe. Additionally, the draft rules maintain the existing prohibition on offering yields to token holders.
Under the draft rules, non-bank stablecoin issuers must back tokens 1:1 with reserves held at qualified Canadian institutions and settle redemptions within three business days.
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