Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Cryptocurrency platform Coinbase will halt trading of the Tether (USDT), Dai (DAI), and RAI stablecoins for users in Canada starting on Aug. 31.
In an email sent to users on Aug. 17, Coinbase stated, “We consistently evaluate the assets on our platform to ensure they comply with our listing criteria,” and as a result of its assessment, trading of the specified stablecoins will be unavailable to Canadian users beginning in September. The exchange had officially launched its Canadian subsidiary just days earlier, although services had been accessible to Canadian customers prior to that.
Canadian users will still be able to deposit and withdraw the stablecoins after the cutoff date. In a statement, the exchange noted:
“Coinbase Canada, Inc. has submitted an application for registration in certain Canadian jurisdictions but has not yet secured registration. Until Coinbase Canada, Inc. obtains registration, it has agreed to adhere to the terms of an undertaking.”
The Aug. 17 notice to Canadian users. Source: Coinbase
Related Posts
Earlier this year, another digital asset exchange, Crypto.com, removed USDT from its offerings for Canadian users. The Ontario Securities Commission prohibited USDT in 2021, although it did not provide an explanation for the decision.
On Feb. 22, the Canadian Securities Administrators (CSA) issued a notice mandating that registered crypto exchanges or those awaiting registration enter into legally binding undertakings with the regulatory authority. Among other stipulations, the undertaking includes:
“A prohibition on the part of the CTP [crypto asset trading platforms] regarding clients purchasing or depositing Value-Referenced Crypto Assets (commonly known as stablecoins) through crypto contracts without the prior written consent of the CSA.”
Tether is a stablecoin that is backed by fiat reserves. In contrast, Dai functions as a hybrid between a fiat and algorithmic stablecoin. RAI, however, is an algorithmic stablecoin that is not tied to any asset. Presently, the only stablecoin authorized by the CSA for listing on centralized crypto exchanges is USD Coin (USDC).
In light of the new regulations, crypto exchange OKX exited the Canadian market in June. Likewise, crypto exchange Binance is set to withdraw from Canada by September.
Magazine: Should we ban ransomware payments? It’s an attractive but dangerous idea
