According to Decrypt, the Canadian government on Saturday proposed draft stablecoin regulations requiring issuers to maintain 1:1 reserves, capping redemption fees at 1%, and prohibiting interest payments to holders. The draft stipulates that stablecoins must be 1:1 backed by cash, government debt maturing within three months, or money market funds holding only such assets, and held in separate accounts by Canadian custodians. Holders can redeem within three business days, with redemption fees not exceeding 1%. Additionally, the draft prohibits promoting stablecoins as bank deposits or claiming deposit insurance/government guarantees. The Bank of Canada will be responsible for registering and supervising issuers. The draft is currently undergoing a 60-day public consultation and is expected to take effect in autumn 2027. Serious violations will face fines of up to CAD 1 million, while "very serious" violations, such as failing to hold sufficient reserves or not redeeming at par value, could incur fines of up to CAD 10 million.