The exchange said it would no longer facilitate stablecoin-related transactions at the end of the month.
Cryptocurrency exchange Crypto com plans to delist Tether (USDT) for Canadian users starting Jan. 31, according to user reports circulating on social media on Jan. 10. The exchange has informed customers that if they do not meet the deadline, then their Tethers will be automatically converted to USD Coin (USDC). It writes: “You may incur a retrieval fee if deposits of USDT are made from external wallets after this suspension period, and fund retrieval may not be possible in some cases.”
In August, Crypto com announced that the Ontario Securities Commission had accepted the company’s pre-registration commitment to do business in Canada. Cryptocurrency exchanges operating in Ontario, Canada, are prohibited from listing Digital as part of regulatory requirements, which includes USDT. Likewise, Coinsquare, a cryptocurrency exchange regulated by the Investment Industry Regulatory Organization of Canada (IIROC), does not currently list USDT as one of its available trading assets.
When issuing its decision, the OSC never explained the rationale behind its Tether ban. However, a document unsealed on February 17, 2021 states that "the only U.S. dollars held by Tether ostensibly backing the approximately 442 million Tethers in circulation are approximately $61 million in deposits with the Bank of Montreal." Meanwhile, From time to time, experts have questioned the veracity of Tether reserves and their audits.
Currently, all potential cryptocurrency exchanges must register with IIROC if they want to operate in Canada. Exchanges such as Binance, Bybit, and Huobi have had problems with OSC’s regulatory status in the past. In response to the development, a Tether spokesperson commented: "The Canadian Securities Administrators and their member securities commissions started issuing guidance in 2021 regarding requirements for regulated exchanges on the matter of stablecoin support, at that time particularly related to USDt. The topic just resurfaced as a result of Crypto com needing to comply with Canadian regulatory requirements." The spokesperson further explained that while Canada “is not a core market for Tether,” the company will ensure its products are available beyond any borders.
