Crypto.com, one of the world’s top exchanges by trading volume, has removed Tether’s dollar-backed stablecoin USDT from its trading platform for Canadian users, according to an email the company sent to its customers. .
An exchange spokesperson said in an email that the company made the decision “in accordance with instructions from the Ontario Securities Commission (OSC) as part of its restricted dealer license pre-registration business.”
All USDT trading pairs, trades, deposits and withdrawals will be delisted by 1pm ET on January 31st, the email continues. All remaining USDT user deposits on the exchange will then be converted into USDC issued by Circle.
Crypto.com’s action comes as competition among top stablecoins intensifies as regulators around the world step up their scrutiny of centralized exchanges following the collapse of FTX.
The Canadian Securities Administration (CSA), Canada’s premier securities regulator, made up of regulators from 10 provinces and three territories, said last month that it would “expand existing requirements” for trading platforms operating in the country. said it would step up surveillance on cryptocurrency exchanges. According to a press release, the CSA “will continue to monitor and evaluate the presence and role of stablecoins in the Canadian capital markets.”
read more: Canadian Securities Regulators Increase Scrutiny of Cryptocurrencies After FTX Collapse
USDT is the most popular stablecoin with a market cap of $66 billion, competing with USDC ($44 billion market cap) and Paxos-issued Binance USD ($16 billion market cap). Tokens are essential tools for the cryptocurrency market to facilitate transactions, but the dispute over its issuer, Tether, and the asset that ostensibly backs its value has been around for as long as it has existed.
Cryptocurrency analyst John Paul Corning told CoinDesk that Canadian digital asset trading platforms have historically been reluctant to list USDT. According to documents filed with the CSA in 2021, Coinberry has banned USDT from its platform, as has Wealthsimple.
