Crypto.com, one of the world’s largest exchanges in terms of trading volume, has announced that it is delisting USDT stablecoin for its users in Canada. The exchange is seeking to comply with regulations set by the Ontario Securities Commission (OSC). The move comes a few months after Canadian authorities made it known that they are strictly monitoring stablecoins in the country following the collapse of FTX.
USDT will no longer be part of crypto.com’s stablecoins in Canada
The crypto.com exchange informs that it will soon no longer be possible to conduct transactions involving the stablecoin USDT in Canada. As of the end of January, crypto.com will no longer allow transactions related to Tether (USDT). The company sent an email to its customers stating that as of January 31, it will remove USDT and all its pairs from the platform for its Canadian users. It will then be impossible to trade, send or receive this stablecoin.
Furthermore, Crypto.com has asked its customers to withdraw or convert their USDT crypto before the deadline. Otherwise, the platform will automatically convert their cryptos into USDC, a stablecoin from Circle.
According to the Crypto.com spokesperson, the decision to remove Tether (USDT) was made in order to comply with the instructions of the Ontario Securities Commission (OSC). Thus, the company decided to delist USDT in order not to disobey the standards issued by the OSC.
Indeed, in October 2020, the platform had announced that it was starting the pre-registration procedures to operate in Canada. However, the regulators had established a list of assets to be avoided for exchanges operating in the area and USDT was among them.
Crypto.com has withdrawn USDT for users in Canada as per the instructions of the Ontario Securities Commission (OSC).
Spokesperson for Crypto.com
Tether in conflict with Canadian regulators?
While the reasons for this decision are still unclear, it is clear that Crypto.com is not alone. Other OSC-regulated exchange platforms have at times had a reluctance to list stablecoin Tether (USDT). This is particularly true of Coinberry and Wealthsimple in 2021.
Yet, Tether is not a newbie in this industry, it has proven its reliability. USDT is currently the largest dollar stablecoin, with a capitalization of $66 billion. Although the Canadian authorities have made this decision, it is unlikely that Tether (USDT) will be removed from the entire Crypto.com platform.
Regardless, it will be interesting to see how other industry players react to this regulation. This could have a significant impact on Canada’s exchange platforms and the future of USDT. In any case, we at Coinpri will be keeping a close eye on this development.
CEO and Editor-in-Chief of Coinpri I have been navigating the waters of Blockchain for 5 years already.
Wait, I can see the Promised Land of Adoption in the distance.
