Coinbase, a leading cryptocurrency exchange, announced on August 17th that it will cease the trading of USDT, DAI, and RAI for its users in Canada starting from September 2023. This decision comes shortly after the company began its operations in the Canadian market.
In line with the announcement, Coinbase highlighted its regular reviews of assets to ensure they meet necessary listing criteria. Until the trading stoppage in September, Canadian customers can still deposit and withdraw these particular stablecoins.
JUST IN:
— Whale (@WhaleChart) August 17, 2023
Coinbase to suspend USDT trading for all users from Canada
Coinbase further clarified its position, noting:
“While Coinbase Canada, Inc. has initiated its application for registration in various Canadian provinces, the process is yet to culminate. Until the final registration is secured, the company is committed to upholding the clauses of an existing undertaking.”
Interestingly, Crypto.com, another prominent cryptocurrency exchange, has also removed USDT from its offerings to Canadians. This move traces back to the Ontario Securities Commission’s 2021 resolution to ban USDT, though the specifics behind the decision have not been revealed.
On February 22nd, the Canadian Securities Administrators (CSA) released a directive asking crypto platforms, irrespective of their registration status, to establish enforceable agreements with regulatory bodies.
A key point in this directive reads:
“Crypto asset trading platforms (CTPs) are prohibited from allowing clients to purchase or deposit Value-Referenced Crypto Assets, commonly known as stablecoins, via crypto contracts without acquiring prior approval in writing from the CSA.”
It’s worth noting that USDT maintains a 1:1 peg with the USD. DAI incorporates features of both fiat-backed and algorithmic stablecoins, while RAI solely relies on algorithmic mechanisms without being tied to any asset.
As of now, USDC stands as the only stablecoin endorsed by the CSA for trading on centralized crypto platforms.
