Key takeaways:
- Coinbase will stop trading USDT, RAI, and DAI on August 31.
- Deposits and withdrawals of these stablecoins by Canadian users will continue post-deadline.
Coinbase, the cryptocurrency trading platform, has revealed its decision to halt trading activities for Tether’s stablecoin (USDT), as well as the DAI and RAI tokens, within Canada.
This announcement comes shortly after Coinbase proudly declared its comprehensive engagement in the Canadian market, encompassing the trading of Tether, the largest global stablecoin.
In a communication addressed to its clientele on Monday, Coinbase conveyed that its latest evaluations have indicated that Tether (USDT), RAI, and DAI fail to adhere to the platform’s established listing criteria. As a result, the trading of these tokens will be suspended.
Despite the suspension of trading, Canadian users will still retain the ability to deposit and withdraw the aforementioned stablecoins beyond the designated deadline.
Coinbase expressed this arrangement in a statement, elucidating that although Coinbase Canada, Inc. has submitted an application for registration in specific Canadian jurisdictions, formal registration has not yet been acquired.
As a result, the company has committed to adhere to the stipulations of an undertaking during this interim period. Coinbase’s action mirrors a similar choice made earlier in the year by Crypto.com, which delisted USDT for its Canadian user base.
Notably, in 2021, the Ontario Securities Commission imposed a ban on USDT trading, although the specific rationale behind this regulatory decision has not been disclosed.
Looking at the broader picture, Canada has witnessed intensified regulatory scrutiny concerning cryptocurrencies. On February 22, the Canadian Securities Administrators (CSA) stipulated that registered crypto exchanges or those in registration must establish legally binding contracts.
Over recent months, numerous cryptocurrency exchanges have faced regulatory challenges within Canada. In May, Binance halted its Canadian operations due to stringent crypto regulations, and similarly, Crypto Exchange Bybit also exited Canada in response to heightened regulations during the same month.
Coinbase’s recent choice to discontinue support for Tether within the Canadian market could be seen as a response to similar pressures experienced by other entities. Notably, the company’s decision aligns with the removal of Tether from its platform.
Despite this, it’s important to highlight that Coinbase will continue to offer its proprietary stablecoin, USDC, which holds the position of being the second-largest asset of its kind in the market, to Canadian traders on its platform.
