As part of its efforts to implement the Stablecoin Act , the Canadian government has initiated a 60-day public consultation regarding regulations for stablecoins issued by non-financial institutions. This move is aimed at gathering public input on a proposed framework that could significantly shape the future of stablecoin usage in Canada. Key Proposals in the Consultation The government is seeking feedback on several important aspects of the proposed regulations, which include: A potential prohibition on yield payments for stablecoins to discourage holders from keeping tokens long-term. A requirement for stablecoin issuers to redeem tokens within three business days of a request from tokenholders. A cap on redemption fees, which cannot exceed 1% of the total value of the coins. These regulations are being developed in alignment with stablecoin frameworks in the United States and other jurisdictions, with the aim to reduce the regulatory burden on issuers operating across multiple regions. Timeline and Registration Requirements The proposed regulations are expected to come into force in fall 2027 . Once implemented, non-financial institution stablecoin issuers will be required to register with the Bank of Canada before launching any stablecoin products. This registration process is part of the broader regulatory landscape established by the Stablecoin Act, which was passed in March. The consultation period will remain open until December 23 , allowing stakeholders ample time to provide their insights and opinions on the proposed framework. This initiative reflects Canada's commitment to establishing a clear and effective regulatory environment for stablecoins. For more detailed information, you can read the full article at the source. This article is not financial advice. Always do your own research before making decisions about your money. Read the full article