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

Marginal note:Payment of penalty

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  82 (1) If the person pays the penalty set out in the notice of violation, the person is deemed to have committed the violation and proceedings in respect of it are ended.

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  Marginal note:Decision

  (2) If the person makes representations in accordance with the notice, the Governor must decide, on a balance of probabilities, whether the person committed the violation and, if so, may, subject to the regulations, impose the penalty set out in the notice, a lesser penalty or no penalty.

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  Marginal note:Failure to pay or make representations

  (3) A person that neither pays the penalty set out in the notice nor makes representations in accordance with the notice is deemed to have committed the violation and is liable to pay the penalty set out in the notice.

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  Marginal note:Notice of decision and right of appeal

  (4) The Bank must cause notice of any decision made under subsection (2) or the penalty that the person is liable to pay under subsection (3) to be issued and served on the person together with notice of the right of appeal under subsection 83(1).

Marginal note:Right of appeal

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  83 (1) A person on which a notice of a decision made under subsection 82(2) is served may, within 30 days after the day on which the notice is served or within any longer period that the Federal Court allows, appeal the decision to that Court.

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  Marginal note:Appeal — no notice of decision

  (2) If the Bank does not cause notice of a decision to be issued and served under subsection 82(4) within 90 days after the day on which representations under subsection 82(2) were made, the person may appeal the penalty set out in the notice of violation to the Federal Court within 30 days after the day on which the 90-day period ends.

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  Marginal note:Powers of Federal Court

  (3) On an appeal, the Federal Court may confirm, set aside or, subject to any regulations made under paragraph 93(z.4) or (z.5), vary the decision.

Marginal note:For greater certainty

84 For greater certainty, a violation is not an offence and, accordingly, section 126 of the Criminal Code does not apply in respect of a violation.

Marginal note:Due diligence

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  85 (1) Due diligence is a defence in a proceeding in relation to a violation.

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  Marginal note:Common law principles

  (2) Every rule and principle of the common law that renders any circumstance a justification or excuse in relation to a charge for an offence applies in respect of a violation to the extent that it is consistent with this Act.

Marginal note:Liability

86 A person is liable for a violation that is committed by any of the person’s employees, third parties or agents or mandataries acting in the course of their employment, their contract or the scope of their authority, whether or not the employee, third party or agent or mandatary that actually committed the violation is identified.

Marginal note:Debts due to His Majesty

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  87 (1) The following amounts constitute a debt due to His Majesty in right of Canada that may be recovered in the Federal Court or any other court of competent jurisdiction:

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    (a) the amount of the penalty set out in a notice of violation, beginning on the day on which it is required to be paid in accordance with the notice, unless representations are made in accordance with the notice or the decision is appealed;

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    (b) if representations are made, the amount of the penalty that is imposed by the Governor, beginning on the day specified by the Governor or, if no day is specified, beginning on the day on which the decision is made;

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    (c) the amount of a penalty determined by the Federal Court under subsection 83(3), beginning on the day on which the period specified in the decision for the payment of that amount ends or the day specified in the decision; and

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    (d) the amount of any costs and expenses referred to in subsection (3).

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  Marginal note:Limitation period or prescription

  (2) Proceedings to recover a debt referred to in subsection (1) may be commenced no later than the fifth anniversary of the day on which the debt becomes payable.

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  Marginal note:Liability

  (3) A person that is liable to pay an amount referred to in any of paragraphs (1)(a) to (c) is also liable for the amount of any costs and expenses incurred in attempting to recover that amount.

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  Marginal note:Receiver General

  (4) A debt referred to in subsection (1) that is paid or recovered is payable to and must be remitted to the Receiver General.

Marginal note:Certificate

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  88 (1) The unpaid amount of any debt referred to in subsection 87(1) may be certified by the Governor.

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  Marginal note:Registration in Federal Court

  (2) Registration in the Federal Court of a certificate has the same effect as a judgment of that Court for a debt of the amount specified in the certificate and all related registration costs.

Marginal note:Limitation period or prescription

89 No notice of violation is to be issued after the second anniversary of the day on which the Bank becomes aware of the acts or omissions that constitute the alleged violation.

Marginal note:Certification by Bank

90 A document purporting to have been issued by the Bank, certifying the day on which the acts or omissions that constitute the alleged violation became known to the Bank, is admissible in evidence without proof of the signature or official character of the person appearing to have signed the document and, in the absence of evidence to the contrary, is proof that the Bank became aware of the acts or omissions on that day.

Marginal note:Evidence

91 In a proceeding in respect of a violation, a notice of violation purporting to be issued under subsection 80(1), a notice of decision purporting to be issued under subsection 82(4) or a certificate purporting to be made under subsection 88(1) is admissible in evidence without proof of the signature or official character of the person appearing to have signed it.

Marginal note:Publication

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  92 (1) Subject to section 76 and the regulations, the Bank must make public the nature of a violation, the name of the person that committed it and the amount of any penalty imposed.

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  Marginal note:Reasons

  (2) Subject to section 76, in making public the nature of a violation, the Bank may include the reasons for its decision to issue the notice of violation and any related decision, including the relevant facts, analysis and considerations that formed part of the decision.

Marginal note:Governor in Council

93 The Governor in Council may make regulations generally for carrying out the purposes and provisions of this Act, including regulations

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  (a) defining any term that is used in the definition incident, issue, outstanding stablecoin, stablecoin or third party in section 2 but that is not defined in this Act;

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  (b) respecting the exclusion under section 11, including to specify the circumstances in which the exclusion does not apply and to define “closed-loop stablecoin”;

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  (c) respecting the exclusion under section 12, including to specify the circumstances in which it does not apply;

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  (d) respecting factors that the Governor may or must take into account for the purposes of section 14;

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  (e) respecting the public registry referred to in section 16;

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  (f) respecting the application referred to in section 17;

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  (g) respecting the notice referred to in section 19;

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  (h) respecting factors that the Bank may or must take into account for the purposes of section 20;

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  (i) respecting the prohibitions under sections 30 to 34;

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  (j) respecting the duty to redeem under section 35;

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  (k) respecting the redemption policy referred to in section 36;

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  (l) respecting the reserve of assets referred to in section 37;

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  (m) respecting the prohibition under section 38;

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  (n) respecting the duties under section 39;

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  (o) respecting the governance policy referred to in section 40;

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  (p) respecting the risk management policy referred to in section 41;

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  (q) respecting the data security policy referred to in section 42;

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  (r) respecting the recovery and resolution policy referred to in section 43;

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  (s) respecting the duties referred to in sections 44 and 45;

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  (t) respecting the report referred to in section 46;

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  (u) respecting the statement referred to in section 47;

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  (v) respecting the notice referred to in section 49;

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  (w) respecting the notice referred to in section 50 and defining “significant change” for the purposes of that section;

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  (x) respecting the duty to retain, use and dispose of information under section 51;

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  (y) respecting the assessment of fees for the purposes of subsections 53(3) and (4);

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  (z) prohibiting, limiting or restricting the disclosure by issuers of information referred to in section 57;

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  (z.1) respecting the exercise of the Bank’s power under section 66;

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  (z.2) designating as a violation the contravention of a specified provision of this Act or the regulations or the non-compliance with orders made, undertakings required, compliance agreements entered into or directions made under this Act;

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  (z.3) classifying each violation as a minor violation, a serious violation or a very serious violation, classifying a series of minor violations as a serious violation or a very serious violation or classifying a series of serious violations as a very serious violation;

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  (z.4) establishing a penalty or a range of penalties in respect of a violation;

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  (z.5) if a range of penalties is established by regulations, setting out the method of establishing the amount payable as the penalty for the violation, including the criteria to be taken into account;

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  (z.6) respecting the service of documents, including the manner and proof of service and the circumstances under which documents are considered to be served;

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  (z.7) respecting the keeping and retention of records;

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  (z.8) providing for the circumstances in which the Bank must not make public, under subsection 92(1), the name of the person that committed a violation; and

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  (z.9) providing for anything that by this Act is to be provided for in the regulations.

Marginal note:Transitional matters

94 The Governor in Council may make any regulations that the Governor in Council considers necessary to provide for any transitional matter arising from the coming into force of this Act, including to provide that all or a portion of this Act does not apply for a period provided for in the regulations, to an issuer that was issuing a stablecoin on the day before the day on which section 15 comes into force.

Marginal note:Classes

95 Regulations made under section 93 or 94 may distinguish among different classes of issuers or stablecoins.

Marginal note:Statutory Instruments Act

96 The Statutory Instruments Act does not apply in respect of

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  (a) an order made under section 14;

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  (b) a directive given under subsection 27(1);

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  (c) an order made under section 60 or 61;

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  (d) a direction made under subsection 63(1) or (3);

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  (e) a direction made under section 66;

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  (f) an order made under section 70 or 71;

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  (g) an order made under subsection 72(1) or (3); and

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  (h) an order made under subsection 74(1) or (3).