Crypto.com has decided to delist Canada’s USDT stablecoin following increased CSA scrutiny of cryptocurrency exchanges.
The news was revealed in an email sent to customers Crypto.com made the decision with reference to a set of instructions from the Ontario Securities Commission (OSC). The decision to delist USDT in Canada also ties in with Crypto.com’s efforts to pre-register for restricted dealer licenses.
The email also states that all USDT trading pairs, trades, deposits and withdrawals will be delisted by January 31, 2023 at 1pm ET. The exchange also warned that the user should not make deposits or withdrawals beyond the deadline and may incur acquisition fees if he deposits USDT from an external wallet after the suspension period. Did. The company stressed that in some cases it may not be possible to recover the funds.
Crypto.com urged users to take urgent action and verify their USDT balances in order to withdraw or convert their stablecoins before the effective date.
This decision by Crypto.com comes in the context of increased scrutiny by regulators regarding centralized exchanges following the collapse of FTX. Additionally, increased competition among the most popular stablecoins also contributed to his demise of USDT, according to coindesk.com.
Canadian Securities Administrators (CSA) Increase Scrutiny Of Cryptocurrencies
In December 2022, the Canadian Securities Administration (CSA) announced that it would enhance its approach to crypto oversight in the context of current market events. The agency, made up of securities regulators from each of Canada’s 10 provinces and her three territories, said it plans to expand existing requirements for domestically operated platforms. increase.
Since FTX filed for bankruptcy, regulators around the world have changed their stance on crypto, especially as other crypto companies and coins have collapsed in the past year. and Terra USD (UST), Terra’s algorithmic stablecoin, both of which lost billions of dollars.
According to Coindesk, Canadian securities regulators have announced that crypto trading platforms that are registered as securities or have applied for a PRU are prohibited from trading or obtaining exposure to crypto securities or derivatives by their Canadian clients. I emphasized that there is