Tether will be removed from Crypto.com in Canada to meet updated crypto regulations
Attached will be removed from Crypto.com: According to user reports circulating on social media on January 10, the cryptocurrency exchange Crypto.com recently sent an email to its Canadian customers, informing them that Tether would no longer be supported as of January 31. The company said that on that date it would delist USDT and suspend all USDT transactions.
“Please take urgent action to review your USDT balance and take all necessary action (e.g. withdrawal or conversion) before the effective date,” he warned.
Clients are urged to review their USDT balances and take all necessary actions such as withdrawal or conversion before the delisting date. Failure to do so may result in recovery fees for attempting to deposit USDT from external wallets after suspension, and in some cases recovery of funds may not be possible. The delisting also impacts trading and USDT deposits/withdrawals on the Crypto.com app.
In August, Crypto.com announced that the Ontario Securities Commission had accepted the company’s pre-registration undertaking for operations in Canada. As part of regulatory requirements, cryptocurrency exchanges operating in the Canadian province of Ontario are prohibited from listing digital assets prohibited by the CSO, which includes USDT. Similarly, Coinsquare, a cryptocurrency exchange regulated by the Investment Industry Regulatory Organization of Canada (IIROC), does not currently list USDT among its available trading assets.
All USDT trading pairs, trades, deposits, and withdrawals will be delisted by 1 p.m. ET on January 31, the email continues. Any remaining USDT user deposits on the exchange after this time will be converted to USDC issued by Circle. Crypto.com’s action comes as regulators around the world step up their oversight of centralized exchanges following the collapse of FTX and as competition among major stablecoins grows.
The Canadian Securities Administrators (CSA), the country’s top securities regulator made up of regulators from 10 provinces and three territories, said last month that it would strengthen its oversight of crypto exchanges by “ expanding existing requirements” for trading venues operating in the country. The ASC said it “continues to monitor and assess the presence and role of stablecoins in Canadian financial markets,” according to a press release.
As the Second Great Stablecoin War heats up, Tether’s USDT appears to be lagging the curve. Since the collapse of FTX, stablecoin rival USDC has been the preferred choice for most crypto users.
According to on-chain data from Glassnode, USDC has averaged over $12.5 billion more transfer volume per day than USDT and five times that of USDT since October. The decline in USDT volumes comes amid criticism from the audit and a less transparent reserve.
According to the Tether representative, Canada made a quick decision. While any nation should consider all available options with an open mind before executing. Having a “fair, open and forward-looking approach” will only help the country’s financial growth.
The spokesperson also mentioned that the delisting of Tether in Canada does not have a big impact on the token as they do not consider Canada as their primary market. USDT is the 1st stablecoin in the CMC stablecoin category. Additionally, Tether only has a market capitalization of $66 billion with an average trading volume of US$23 billion in 24 hours.
Crypto.com’s decision to delist USDT comes as regulators in Canada seek to tighten their reins on centralized exchanges following the collapse of FTX.