Crypto.com Will Remove USDT From Its Canadian Listing

Key Points:

• Crypto.com announced the delisting of USDT —the most important stablecoin in the crypto ecosystem— in Canada to comply with the country’s regulations.
• The delisting of USDT in Canada was viewed by many users as a preview of what might occur internationally if officials in other nations decide to fight cryptocurrencies with stricter laws.

Crypto.com announced the delisting of USDT —the most important stablecoin in the crypto ecosystem— in Canada to comply with the country’s regulations.

Several users on Reddit and Twitter reported that Crypto.com sent an email informing Canadian users of the decision.

Users will have until January 31 to withdraw or swap USDT for any other money, according to the statement. All USDT balances will automatically convert to Circle’s USDC stablecoin if this is not done.

It has been reported by Reddit user zoomercoomer9000 that Canadian regulators issued a statement in late December prohibiting cryptocurrency exchanges from enabling Canadian consumers to trade cryptocurrencies that “are itself a security and derivative.”

“As a result of this ongoing work, the CSA is of the view that stablecoins, or stablecoin arrangements, may constitute securities and/or derivatives. Crypto trading platforms that are registered or that have entered into a pre-registration undertaking are reminded that they are prohibited from permitting Canadian clients to trade, or obtain exposure to, any crypto asset that is itself a security and/or a derivative.”

The delisting of USDT in Canada was viewed by many users as a preview of what might occur internationally if officials in other nations decide to fight cryptocurrencies with stricter laws.

Others countered that the delisting was due to Crypto.com positive Com’s relationship with Circle, the company that issued USDC, and that the whole thing was a “business transaction” to stifle competition. Precisely the same as what Binance did to USDC.

Tether has a somewhat murky background, according to user zoomercoomer9000, who also added that they previously lied about their 1:1 peg to the US dollar and withheld their affiliation with Bitfinex until it was revealed in the Paradise Papers.

Canadians now have fewer options for earning interest on their money

Other commenters claimed that Canadians now have fewer options for earning interest on their money, which makes the delisting of USDT “a significant problem for Canadians.”

While most individuals disapproved of Crypto.com’s conduct, some said that restrictions are necessary for cryptocurrency spread and for significant firms to enter the ecosystem.

Although Crypto.Com has not yet released a formal statement on the subject, it has told other media outlets about the move. Additionally, they did not specify whether this prohibition was in effect temporarily or permanently. Therefore, it must be regarded as in force until further notice.

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