Canada Proposes 100% Stablecoin Reserves, 3-Day Redemptions and $10M Penalties - CCN.com

Canada has proposed a regulatory framework for stablecoin issuers built around three core requirements: full backing of tokens with reserves, redemption within three days, and penalties reaching up to $10 million for non-compliance. The proposal signals a shift toward treating stablecoins as a supervised segment of the payments system rather than an unregulated corner of crypto markets.

The 100% reserve requirement is the centerpiece. By mandating that every token be backed one-to-one, regulators aim to address the runs and depegging episodes that have undermined confidence in stablecoins during stress. A three-day redemption window sets an explicit expectation that holders can convert tokens back into fiat currency within a defined period, making the promise of liquidity enforceable rather than aspirational. The $10 million penalty ceiling gives the rules teeth, though its deterrent effect will depend on how consistently it is applied.

For market participants, the details still to watch include how reserves must be held and disclosed, which entities will supervise compliance, and how the timeline compares with stablecoin rules elsewhere. Clearer reserve and redemption standards could support institutional adoption, while tighter compliance costs may reshape the competitive landscape among issuers.