Summary:
- Cryptocurrency exchange Coinbase will suspend trading of the Tether (USDT), Dai (DAI), and RAI stablecoins for Canadian users starting from August 31.
- The decision was made based on Coinbase’s regular review of assets to ensure they meet listing standards.
- Canadian users will still be able to deposit and withdraw the stablecoins after the deadline.
- Coinbase Canada has filed an application for registration but has not yet obtained it.
- Crypto.com and OKX have previously delisted USDT for Canadian users due to regulatory restrictions.
- The Canadian Securities Administrators (CSA) requires registered crypto exchanges to sign undertakings, prohibiting the buying or depositing of stablecoins without prior consent.
- The only stablecoin approved by the CSA for listing is USD Coin (USDC).
- Crypto exchange Binance is also scheduled to withdraw from Canada by September.
Cryptocurrency exchange Coinbase has announced that it will suspend the trading of Tether (USDT), Dai (DAI), and RAI stablecoins for its Canadian users starting from August 31. The decision was made after the exchange conducted a regular review of its assets and determined that these stablecoins no longer met its listing standards. However, Canadian users will still be able to deposit and withdraw these stablecoins even after the trading suspension takes effect.
Coinbase Canada, Inc. has filed an application for registration in certain Canadian jurisdictions but has not yet obtained it. As a result, it has agreed to abide by the terms of an undertaking until it obtains the necessary registration. This move by Coinbase follows a similar action taken by Crypto.com, which delisted USDT for Canadian users earlier this year due to regulatory restrictions imposed by the Ontario Securities Commission.
The Canadian Securities Administrators (CSA) published a notice earlier this year requiring registered crypto exchanges or those pending registration to sign legally binding undertakings. These undertakings include a prohibition on buying or depositing stablecoins, also known as Value-Referenced Crypto Assets (VRCA), without the prior written consent of the CSA. The only stablecoin currently approved by the CSA for listing on centralized crypto exchanges is USD Coin (USDC).
Regulatory restrictions have led to other exchanges, such as OKX, withdrawing from Canada. Binance is also scheduled to withdraw from Canada by September. These actions highlight the challenges faced by crypto exchanges in complying with regulatory requirements in different jurisdictions.
Overall, the suspension of USDT, DAI, and RAI trading by Coinbase in Canada demonstrates the increasing focus on regulatory compliance within the cryptocurrency industry. It also underscores the importance of meeting listing standards set by exchanges in order to ensure the quality and legitimacy of listed assets.
