Cryptocurrency exchange Crypto.com delists Tether’s stablecoin USDT from its platform for users in Canada.
According to a statement released by a representative for Crypto.com, “Crypto.com has delisted USDT for users in Canada in compliance with instructions from the Ontario Securities Commission (OSC) as part of our pre-registration undertaking for a limited dealer license.”
The email sent out by the platform noted that Crypto.com would discontinue accepting USDT as of January 31, 2023. However, the statement did not clarify that only customers located in Canada would be affected by this change, which led to some uncertainty in the community.
Users were told by the exchange that after the deadline, USDT trading, deposits, or withdrawals will no longer be authorized. In the email, the sender asked recipients to promptly check their USDT balances and take any further actions that may be required.
Any unused USDT balances will be “automatically” converted to Circle’s USDC stablecoin once the transition is complete. The exchange also said that it may not be possible to deposit USDT from external wallets beyond the deadline, or that doing so may incur certain fees.
A ban on margin and leverage trading in cryptocurrencies was introduced by the Canadian Securities Administrator only one month ago, as part of a recent change to legislation governing crypto trading platforms that are active in Canada.
According to the CSA, stablecoins and stablecoin arrangements both have the potential to be considered securities and/or derivatives.
In the wake of the news that Tether might be delisted, a spokeswoman for the company commented, “Canada is not a primary market for Tether.” Despite the fact that this does not mean that we will give up on our goal in ensuring that Tether goods may be used across international boundaries, we adhere to regulatory restrictions.
Compiled by Coinbold