Canada has proposed allowing stablecoin holders to request redemption without a minimum amount, with a three-business-day processing window and a fee ceiling of 1%. The draft Stablecoin Regulations, published on October 24, remain a proposal rather than requirements already in force.
Section 15 would require covered issuers to redeem a holder's outstanding stablecoins regardless of value. It would also require website notice at least seven days before an issuer starts charging redemption fees or raises them.
The liquidity exception is narrower than a general suspension clause. An issuer unable to meet requests because liquidity is insufficient in markets for its reserve assets could limit daily redemptions. That exception expressly overrides the redemption and timing provisions, while leaving the proposed fee cap intact.
The government's accompanying explanation also defines the clock's practical boundary: within the processing window, the issuer would liquidate reserve assets where necessary and initiate the fiat transfer. It does not set a deadline for money to arrive in a recipient's external bank account.
The Department of Finance's framework would place non-financial-institution issuers under Bank of Canada supervision. Its scope includes domestic and foreign issuers making fiat-backed stablecoins available to Canadians, directly or indirectly, whether the reference currency is Canadian dollars or another currency. Prudentially regulated financial institutions sit under their existing regulatory regimes.
Issuance and trading remain separate layers. Finance says securities regulators oversee stablecoin trading on exchanges and crypto platforms, while payment-service supervision depends on payment activities. An issuer redemption policy therefore addresses a different process from selling tokens through an exchange.
The Gazette opens a 60-day consultation and describes fall 2027 as the intended implementation period. Final rules and commencement are still pending.