defi ·
Canada will allow stablecoin rewards for spending, but not for holding
Canada has proposed a stablecoin rule that would let an issuer reward a payment while barring it from paying people to keep tokens in their wallets.
The distinction appears in draft regulations published October 24, with comments open until December 23. A customer could receive a rebate for paying a merchant with a Canadian-regulated stablecoin. The same issuer could not promise an annual return merely for keeping that coin in an app.
Between the obvious cases sit loyalty points, platform promotions and arrangements where a distributor pays the customer while the issuer funds the distributor. The draft tries to follow who pays and what behaviour earns the reward. JUST IN: Canada proposes stablecoin rules banning yield payments and tightening reserve requirements The draft framework requires non-bank issuers to hold reserves with Canadian financial institutions, with a 60-day public consultation underway and implementation expected in… pic.twitter.com/T7URWUQ7Tf The text in the Canada Gazette is still a proposal.
Reported by crypto.news.
