Crypto.com announced the decision to delist Tether in compliance with the Canadian regulator. The crypto exchange confirmed plans to terminate Tether-based transactions in Canada by January 31.
The plans to end association with the leading stablecoin ranked by market capitalization aligns with the directive issued by the Ontario Securities Commission (OSC). Explaining the delisting of USDT, a Crypto.com spokesperson attributed it to the need to comply with the pre-registration requirements under the restricted dealer license.
Crypto.com Delisting USDT
The exchange platform conveyed the adjusted policy on January 10 via emails to Canadian users. News of delisting Tether initially appeared on Twitter, confirming Crypto.com support for Tether (USDT) ends this month. The absence of clarity in the notice that the exchange’s new policy scope is limited to Canadian users triggered ambiguity. It prompted confusion amongst users and aggravated further through social media posts.
The notice directed Canadian users to consider reviewing their USDT balances. Once the deadline lapses, it warns of halting all Tether-related activities, including withdrawals, deposits, and trading.
The emails shared by Canadian users via Twitter stipulate that Crypto.com will automatically convert the remaining USDT balances into Circle’s USD Coin after the deadline. The email was noncommittal on the reasons for the USD Coin reference. Nevertheless, Crypto.com ruled out that users could access and retrieve USDT deposits after the January 31 deadline.
Stringent Regulatory Compliance
The decision to end the association with Tether arises from the regulatory clarification undertaken in December by Canadian Standards Association (CSA). The policy update, lauded by the Ontario Securities Commission via a website post, warned of increased scrutiny of stablecoins’ presence and input within the Canadian capital market.
OSC observed that CSA considers stable coins as mirroring securities and derivatives. It echoed the previous perspective of stablecoins, allowing users to swap cryptos for stable value storage without converting their virtual assets into fiat money.
The OSC post demonstrated that all crypto exchanges registered within Canadian jurisdictions should not allow Canadian clients to trade or access exposure to digital assets categorized as security and derivative. Nevertheless, the CSA update directed all registered crypto exchanges to utilize individual procedures to ascertain whether a digital asset was a derivative or a security.
Tether Response to USDT Delisting
Tether lamented Crypto.com’s decision to delist USDT from the platform. Nevertheless, the spokesperson dismissed Canada, terming it a non-core market. He noted that Tether would continue the pursuit of expanding its products beyond other jurisdictions.
Although promising to comply with the regulatory requirements, Tether’s spokesperson decried the aggressive regulatory approach exhibited by Canada towards cryptos. Instead, Tether is lobbying for a fair and futurist approach to encourage crypto adoption.
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