Coinbase Pauses Stablecoin Trading In Canada From August 31 Amid Expansion Surge

Key Points:

• Coinbase Canadian users temporarily lose access to USDT, DAI, and RAI trading on August 31.
• The exchange expands into Canada, offering a free trial of its service with staking benefits and no trading fees.
• This move reflects the exchange’s regulatory compliance approach and Canada’s crypto-friendly stance.

Cryptocurrency exchange platform Coinbase has temporarily suspended trading for stablecoins USDT, DAI, and RAI for Canadian users, effective August 31.

Coinbase Canada, Inc., which is currently seeking registration in specific Canadian jurisdictions, will adhere to an undertaking’s terms until formal registration is secured. This move comes as the exchange extends its influence to Canada, broadening its reach within the North American market.

The decision communicated via email on August 17 resulted from Coinbase’s continuous asset review process to ensure alignment with its listing standards. However, Canadian users will still be able to deposit and withdraw these stablecoins beyond the upcoming deadline.

As part of its Canadian expansion strategy, the exchange is offering a complimentary 30-day trial of its newly launched subscription service, Coinbase One, to Canadian nationals. The service centers on staking and boasts benefits like zero trading fees and priority customer support.

Coinbase‘s interest in Canada can be attributed to the nation’s notable “crypto-awareness” and robust regulatory structure. This move follows the exchange’s recent legal tussle with US regulators, including a lawsuit by the SEC alleging unregistered securities offerings and operating as an unregistered securities exchange and broker.

Canada has been making strides in cryptocurrency, with thirty Canadian lawmakers endorsing cryptocurrencies and blockchain technology in a report released in June. The report included 16 recommendations for the government to formulate a comprehensive national strategy for these emerging technologies.

It’s worth noting that Crypto.com previously delisted USDT for Canadian users, and the Ontario Securities Commission had already banned USDT in 2021. Coinbase’s decision reflects its ongoing commitment to regulatory compliance and adapting to the evolving cryptocurrency landscape.

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