The Tether (USDT), Dai (DAI), and RAI stablecoins will no longer be tradable on Coinbase’s Canadian platform after August 31st due to changes in national legislation. The company notified customers of the suspension via email on Aug. 17, saying it was due to routine inspections to ensure that assets listed on the exchange meet listing standards.
Canadian users will still be able to deposit and withdraw these stablecoins after the deadline, but trading services will no longer be available.Notifications are as follows coin baserecently formally established a Canadian subsidiary, but was already serving customers in Canada even before it was established.
Coinbase Canada, Inc. has applied for registration in some provinces of Canada, but has not yet been granted. In the meantime, the company has committed to complying with what it believes to be a rule set by the CSA.
Regulatory environment impacts other exchanges
Following a ban by the Ontario Securities Commission (OSC), Crypto.com similarly stopped offering USDT to Canadians this year. OSC’s suspension is not explained why it will be enforced. The purchase or deposit of value-referenced crypto-assets (often referred to as stablecoins) is not permitted on registered or pending registration virtual currency exchanges without the express written permission of the CSA .
Crypto.com To Delist USDT pic.twitter.com/3KD0gJlMkE
— Chultry (@charleschortle) January 10, 2023
Tether, a fiat reserve-backed stablecoin, and Dai and RAI, which operate as hybrid and algorithmic stablecoins, are under global scrutiny. Canada. Currently, the only CSA-approved stablecoin that can be listed on a centralized cryptocurrency exchange is Circle’s USD Coin (USDC).
The tightening of regulations led to the withdrawal of cryptocurrency exchange OKX from Canada in June. binancewill be withdrawn by September. Both exchanges cited new regulations as the reason for their exit.
Coinbase Sees Opportunity in Canada
Despite the challenges, Coinbase remains optimistic about the Canadian market. The company announced on August 14, announced Expanded services in partnership with local financial services firm Peoples Trust Company. We now offer all users the option to deposit and withdraw via the Interac e-Transfer service, a highly requested feature by Canadian users.
Coinbase’s Vice President of International and Business Development, Nana Murugesan, said Canada’s high level of cryptocurrency awareness, enthusiastic technology ecosystem, and progress toward a robust regulatory framework have made Canada a potential market in the crypto economy. I believe that we will become a global leader.
Coinbase entered the Canadian market while other exchanges including Binance and ByBit exited due to increased regulation. The CSA has introduced rules requiring exchanges to sign terms of service while registration applications are still under review.
Unfortunately, today we are announcing that Binance will join other prominent cryptocurrency businesses in actively exiting the Canadian market.
We thank the regulators for working with us to meet the needs of our Canadian users.
— Binance (@binance) May 12, 2023
Coinbase’s expansion in Canada has been relatively successful, but it stands in contrast to its ongoing legal battle in the United States. Despite these struggles, Coinbase CEO Brian Armstrong remains optimistic about the regulatory environment in Canada and other countries including Europe, the UK, Singapore and Australia.
Coinbase’s commitment to the Canadian market includes the recent hiring of Lucas Matheson as Country Director and the addition of over 200 engineers to its Toronto and Vancouver offices. The move comes amid other trading platforms like Binance, the world’s largest cryptocurrency platform by trading volume, announcing their exit from Canada, citing increased regulatory scrutiny.
Coinbase Suspension Decision USDT Our Canadian deal reflects our commitment to compliance and adaptation to local regulatory changes. While regulatory uncertainty remains a concern, the company’s continued investment in the Canadian market demonstrates its belief in the growth and positive development potential of cryptocurrencies.
An article about Coinbase suspending stablecoin trading in Canada first appeared on MetaNews.