Canada Proposes Stablecoin Rules with 1% Redemption Fee Cap
Canada's draft regulations outline stablecoin redemption requirements and reserve management rules for issuers.
Canada's draft regulations outline stablecoin redemption requirements and reserve management rules for issuers. USDC (USDC) is trading at ₹95.13 ($0.9997). This is an original Token Times brief synthesising 2 outlets (Blockonomi, Cryptopolitan), plus live market data, as of Mon, 26 Oct 2026 11:45:01 UTC.
The proposed rules could significantly impact stablecoin issuers and users in Canada by setting clear requirements for redemption processes, fee structures, and reserve management, while favoring traditional banks in the ecosystem.
- Stablecoin issuers must complete redemptions within 3 business days.
- Redemption fees capped at 1% under the proposal.
- Issuers can set daily limits during liquidity shortfalls.
- Canadian banks may gain more control over stablecoin reserves.
Blockonomi and Cryptopolitan both report that Canada's proposed regulations would require stablecoin issuers to complete redemptions within three business days and cap fees at 1%. They also agree that the rules would allow issuers to impose daily redemption limits during liquidity shortfalls. However, Cryptopolitan emphasizes that the regulations would give Canadian banks a more prominent role by requiring non-bank issuers to park their reserves in those banks and supporting banks' push for banning stablecoin yields, details not mentioned by Blockonomi.
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- Canada Proposes Stablecoin Rules with 1% Redemption Fee Cap — this brief
Canada has released draft regulations for stablecoin issuers that include specific requirements for redemption processes and fee structures. According to the proposal, issuers must enable holders to redeem any amount of stablecoins with no minimum limit.
The regulations stipulate that issuers must complete redemption requests within three business days. Additionally, redemption fees are capped at 1%, and issuers are allowed to set daily redemption limits if there is a liquidity shortfall in the reserve-asset markets.
The document, published in the Canada Gazette, comes shortly after the Office of the Comptroller of the Currency in the US allowed banks to issue stablecoins. Cryptopolitan reports that the Canadian proposal also favors traditional banks by mandating non-bank issuers to park their reserves in Canadian banks and supporting banks' efforts to ban stablecoin yields.
The 
USDC circulating supply currently stands at $71.6 billion, according to DeFiLlama. The live market data shows that USDC is trading at $0.999713, with a 24-hour change of +0.01% and a 7-day change of -0.02%, maintaining a market cap of $71.42 billion.
The proposed regulations could have significant implications for the stablecoin market in Canada, potentially leading to more centralized control by traditional financial institutions. Market participants will be watching closely to see how these rules evolve and how they might affect the broader adoption of stablecoins in the country.
Since this brief published about 54 minutes ago, USDC (USDC) has moved from ₹95.13$0.9997 to ₹95.13$0.9997 — +0.00%.
The chart plots USDC's price: grey is the move before this brief published, the vertical dashed line marks the moment it published, the horizontal dashed line is the price then, and the coloured area is the move since — from Token Times's market data (daily resolution; intraday detail builds over the first day). It shows what happened after the news, not that the news caused it; many factors move prices. Not financial advice.
At today's peer-to-peer rate, 1 USDC ≈ ₹104.22 (about $0.9997), up 0.0% over 24 hours. The rupee itself trades about 9.6% above the official rate on the P2P market, so a Indian buyer's effective cost differs from the headline dollar price.
Live market data
Current prices for the asset in this story — live, source-stamped, updated every 15 minutes.
Figures and sectors in this story, checked live against on-chain aggregators · October 26, 2026.
Token Times reads these figures directly from on-chain aggregators (DeFiLlama, mempool.space) at build time — independent of what any outlet reported. Sector totals aggregate every protocol DeFiLlama tracks in that category. Values are live and will change.
Canada Proposes Stablecoin Rules with 1% Redemption Fee Cap — questions & answers
What are the key requirements for stablecoin issuers under Canada's proposal?
Issuers must complete redemptions within 3 days, cap fees at 1%, and may set daily limits during liquidity shortfalls.
How do the regulations impact Canadian banks?
The rules favor banks by requiring non-bank issuers to park reserves in those banks and supporting banks' push for banning stablecoin yields.
What is the current status of the regulations?
The proposal has been published in the Canada Gazette but has not yet been enacted into law.
How much is 1 USDC worth in rupee today?
About ₹104.22 at the live peer-to-peer (P2P) USDT rate, which is what Indians typically trade at — equivalent to roughly $0.9997. The rupee price moves with both USDC's US-dollar price and the USDT/INR rate; use our USDC in rupee page for any amount.
Which outlets reported this story?
This is an original Token Times brief that synthesises reporting from Blockonomi, Cryptopolitan, with the key figures cross-checked for agreement across them. It is not a copy of any one article — follow the source links above for the original reporting.
Original summary — not financial advice. This is an original Token Times brief that summarises a development reported elsewhere and adds live market data for context; it is not the original article and reproduces no part of it. Follow the source link above for full details. Crypto is volatile and high-risk — always do your own research.