Stablecoin Act (S.C. 2026, c. 3, s. 600)

Marginal note:Information requested by Bank

18 An applicant must provide the Bank with any information that the Bank requests in relation to the application, within the time and in the manner provided for in the regulations, if any.

Marginal note:Notice of change

19 An applicant must notify the Bank of any change to any information that was provided to the Bank, within the time and in the manner provided for in the regulations, if any. The Bank must then notify the Minister and any designated person or government authority.

Marginal note:Application complete

20 As soon as feasible after the Bank is of the opinion that an application is complete, the Bank must

• The following provision is not in force.

  (a) provide the Minister and any designated person or government authority, for the purpose of enabling them to assist the Minister in exercising the Minister’s powers and performing the Minister’s duties and functions under this Act, with the completed application;

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  (b) provide the Centre with the completed application for the purpose of enabling the Centre to carry out its objects under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act; and

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  (c) notify the applicant that the application is complete.

Marginal note:Decision to review application

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  21 (1) The Minister may, within the period provided for in the regulations, decide to review an application if the Minister is of the opinion that it is necessary to do so for reasons related to national security. If the Minister decides to review an application, the Minister must notify the Bank and the Bank must then notify the applicant.

• The following provision is not in force.

  Marginal note:Extension of period

  (2) The Minister may extend the period for one or more periods provided for in the regulations if the Minister considers it necessary to do so and notifies the Bank. In that case, the Bank must notify the applicant of the extension.

Marginal note:Bank not authorized to add name to list

22 The Bank must not add the applicant’s name to the list of issuers referred to in paragraph 16(a) during a period referred to in subsection 21(1) or (2) unless the Minister informs the Bank that the Minister has decided not to review the application.

Marginal note:Time for review

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  23 (1) If the Minister decides to review an application, the Minister must conduct the review within the period provided for in the regulations.

• The following provision is not in force.

  Marginal note:Extension of period

  (2) The Minister may extend the period for conducting the review for one or more periods provided for in the regulations if the Minister considers it necessary to do so and notifies the Bank. In that case, the Bank must notify the applicant of the extension.

Marginal note:Bank not authorized to add name to list

24 If the Minister notifies the Bank that the Minister has decided to review an application, the Bank must not add the applicant’s name to the list of issuers referred to in paragraph 16(a) unless the Minister notifies the Bank that the Minister has decided not to give a directive under subsection 27(1).

Marginal note:Notice to Bank

25 The Minister must notify the Bank if, after completing a review of an application, the Minister decides not to give a directive under subsection 27(1).

Marginal note:Additional information

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  26 (1) An applicant must provide the Minister and any designated person or government authority with any additional information that the Minister or the designated person or government authority requests in relation to the applicant or the activities that the applicant performs or plans to perform in relation to a stablecoin.

• The following provision is not in force.

  Marginal note:Manner

  (2) A request for information under subsection (1) must be submitted to the Bank, which must then transmit it to the applicant. The applicant must provide the requested information to the Bank, which must then transmit it to the Minister and the designated person or government authority.

Marginal note:Directive to refuse application

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  27 (1) The Minister may, for any of the following reasons, give a directive to the Bank to refuse an application:

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    (a) there are reasons related to national security;

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    (b) the applicant has failed to provide additional information in accordance with section 26;

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    (c) an order made under section 70, or an undertaking required under that section, that relates to the application has not been complied with;

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    (d) a condition imposed under section 71 that relates to the application has not been complied with;

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    (e) the applicant has provided false or misleading information to the Bank, the Minister or any designated person or government authority;

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    (f) any other reason provided for in the regulations.

• The following provision is not in force.

  Marginal note:Representations

  (2) The Minister must not give a directive to the Bank to refuse an application unless the applicant is provided with an opportunity to make representations to the Minister in respect of the matter.

Marginal note:Refusal of application

28 If the Minister gives a directive to the Bank to refuse an application, the Bank must refuse the application and, as soon as feasible, notify the applicant that the application has been refused.

Marginal note:Name added to list

29 If the Minister notifies the Bank that the Minister has decided not to give a directive to refuse an application, the Bank must, as soon as feasible, add the applicant’s name to the list of issuers referred to in paragraph 16(a) and notify the applicant.

Marginal note:False or misleading information

30 An issuer must not communicate or otherwise provide false or misleading information to the public.

Marginal note:Prohibition

31 An issuer must not

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  (a) use terms, expressions, logos, symbols or illustrations provided for in the regulations; or

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  (b) use, in a manner that is contrary to the regulations, terms, expressions, logos, symbols or illustrations provided for in the regulations.

Marginal note:Prohibition

32 An issuer must not, directly or indirectly, grant or pay to the holder of a stablecoin that the issuer has issued any form of interest or yield in respect of that stablecoin, whether in cash, digital assets or other consideration.

Marginal note:Prohibition

33 An issuer must not issue a stablecoin if, in Canada or a foreign jurisdiction, the stablecoin is

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  (a) legal tender;

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  (b) a deposit or proof of a deposit; or

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  (c) insured under a public deposit insurance system or guaranteed or backstopped by a government.

Marginal note:Representations

34 An issuer must not represent a stablecoin in a manner that suggests that the stablecoin is

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  (a) legal tender;

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  (b) a deposit or proof of a deposit; or

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  (c) insured under a public deposit insurance system or guaranteed or backstopped by a government.

Marginal note:Redemption

35 An issuer must redeem outstanding stablecoins in the reference currency, at par value and in accordance with the regulations, if any.

Marginal note:Redemption policy

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  36 (1) An issuer must, in accordance with the regulations, if any, establish and make publicly available a policy respecting the redemption of outstanding stablecoins that contains

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    (a) the conditions that apply to redemption, including with respect to the manner and timing of redemption and any fees or charges that may be payable to the issuer or any other person;

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    (b) a description of the roles of any third parties; and

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    (c) any information provided for in the regulations.

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  Marginal note:Policy provided to Bank

  (2) An issuer must provide the Bank with the redemption policy.

Marginal note:Duty to maintain reserve

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  37 (1) An issuer must, in accordance with the regulations, if any, maintain a reserve of assets that has a value that is equal to or greater than the par value of outstanding stablecoins.

• The following provision is not in force.

  Marginal note:Use of assets

  (2) Subject to the regulations, an issuer must not use the assets in the reserve of assets for a purpose other than to redeem outstanding stablecoins.

• The following provision is not in force.

  Marginal note:Composition

  (3) The reserve of assets must be composed exclusively of the reference currency or other high-quality liquid assets that are

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    (a) denominated in the reference currency; and

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    (b) provided for in the regulations or, if no regulations are made, approved by the Bank.

Marginal note:No encumbrance

38 Subject to the regulations, an issuer must not pledge as collateral, create a security or a security interest in or otherwise encumber the assets in the reserve of assets.

Marginal note:Qualified custodian — placement of assets

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  39 (1) An issuer must, in accordance with the regulations, if any, place the assets in the reserve of assets with one or more qualified custodians.

• The following provision is not in force.

  Marginal note:Holding of assets

  (2) An issuer must, in accordance with the regulations, if any, ensure that each qualified custodian holds the assets in the reserve of assets

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    (a) in a manner that ensures that the assets are segregated from the qualified custodian’s own assets and the issuer’s other assets;

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    (b) in a manner that ensures that the assets are not available to satisfy creditors of the qualified custodian or the issuer, including under the Bankruptcy and Insolvency Act or a provincial or foreign law dealing with bankruptcy and insolvency, other than to satisfy any claims of the holders of a stablecoin with respect to the redemption of the stablecoin; and

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    (c) in accordance with the regulations, if any.

Marginal note:Governance policy

40 An issuer must, in accordance with the regulations, if any, establish, implement and maintain a governance policy that describes

• The following provision is not in force.

  (a) the roles and responsibilities of the members of the issuer’s governing body and senior management with respect to all activities related to a stablecoin that it issues;

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  (b) the measures that the issuer has put in place to ensure accountability and oversight with respect to all activities related to a stablecoin that it issues;

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  (c) the roles of third parties and the policies and procedures the issuer has established to identify and manage conflicts of interest; and

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  (d) any other matter provided for in the regulations.

Marginal note:Risk management policy

41 An issuer must, in accordance with the regulations, if any, establish, implement and maintain a risk management policy that describes the measures that it has put in place to

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  (a) ensure operational resilience, incident response, continuity of critical functions and recovery from disruptions;

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  (b) identify and manage risks related to third parties;

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  (c) implement cybersecurity safeguards to protect the issuer’s systems and data against unauthorized access, disruption or misuse;

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  (d) identify and manage risks related to money laundering and terrorist financing; and

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  (e) address any other matter provided for in the regulations.