In the words of a spokesperson for Crypto.com, “Crypto.com has delisted USDT for users in Canada in accordance with instructions from the Ontario Securities Commission (OSC) as part of our pre-registration undertaking for a restricted dealer license ”
Crypto.com announced its plans to delist Tether (USDT) and suspend Tether-related transactions for its Canadian user base on January 31, 2023.
On December 12, 2022, the Canadian Securities Administrators (CSA), an organization of regulatory agencies that has the OSC as one of its members, posted an update on its crypto regulation guidelines. In the notice, the CSA claimed that stablecoins can be classified as securities and/or derivatives. As a result, it cautioned crypto platforms against providing services for stablecoins. The CSA also asked registered crypto platforms to have their own procedures for classifying tokens as securities or derivatives.
In its recent email, Crypto.com claimed that the exchange will remove all USDT trading pairs, withdrawals, and deposits for users based in Canada by the end of the month. The exchange noted that it will auto-convert USDT assets to Circle-issued USD Coin (USDC) tokens after the deadline.
After January 31, Crypto.com will stop crediting Tether balances to accounts held by Canadian clients. The exchange cautioned that fund retrieval may not be possible if users transfer USDT assets to their Crypto.com wallets after the deadline.
Tether currently holds the largest market cap of $67.72B in the stablecoin market.
