Canada's government published draft Stablecoin Regulations in the Canada Gazette of 24 October, to accompany the Stablecoin Act, which received Royal Assent on 26 March but is not yet in force. Issuers that are not financial institutions will have to register with the Bank of Canada. Holders will be able to redeem any balance within three business days, redemption fees will be capped at 1% and any fee increase must be announced seven days in advance. Consultation runs until 23 December 2026, the rules are intended to take effect in autumn 2027 and existing issuers will have 30 days to apply.

What it means: Canada is following the EU, the US and several Asian countries in creating a dedicated framework for stablecoins, with a focus on redemption rights and fee limits. A comparison with the EU's MiCA is useful. In the EU, holders of e-money tokens have the right to redeem at any time and at par value, and the issuer may not charge a redemption fee. Canada allows a fee of up to 1% and a three business day deadline, so its framework is somewhat more flexible for issuers. Supervision by the central bank, rather than a securities regulator, shows that stablecoins are treated mainly as a payment tool. For Greek businesses and fintechs using stablecoins in international payments, especially with partners in North America, the different rules across countries mean different rights for holders depending on the issuer. Anyone holding stablecoins should know which law applies, where the reserves are kept and what fees may apply on redemption. The consultation is open, so the final terms may change before they apply.

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