According to reports, Crypto․com is set to delist Tether $USDT for Canadian users, citing compliance with the local regulator.
The well-known cryptocurrency trading website, Crypto.com is removing Tether (USDT) from its list for users in Canada, according to an email sent to users of the platform. The announcement comes weeks after the Canadian Securities Administrators (CSA) stated its plan to expand its regulation of cryptocurrency trading platforms by raising operational standards.
One of the notable requirements is that any platform functioning in the nation must register with the relevant authorities or discontinue its operations. In addition, the CSA stated that this regulation applies to companies operating outside of its jurisdiction but providing services to Canadian clients.
To continue operating, Crypto.com, which belongs to this category, must register with the authorities. The exchange will also be forced to strictly abide by the authorities’ laws as a result of this registration.
Delisting details
January 31 2023 is the exact date Crypto.com will delist Tether. Allaying the fears of the users, the crypto exchange claims that at the point of delisting, it will instantaneously convert all remaining USDT balances to USDC with reference to real-time market rates at the time of conversion. After this time, deposits made using USDT will no longer be accepted.
Any USDT-based recurring purchases made after January 31, 2023, at 1:00 EST will be immediately cancelled.
After this delisting, users who deposit USDT from an external wallet will have to pay a retrieval fee to get their USDT back. However, in some cases, they won’t be able to get their money back. Additionally, customers’ recurring purchases and Earn items on Crypto.com will no longer include USDT.
Why Delist Tether?
Taking a quick dive into previous events, in September 2022, Canada’s top financial watchdog, the Ontario Securities Commission (OSC) made a decision that stablecoins may “constitute securities.” Although the regulator did not state explicitly that Tether (USDT) was a “security,” it issued a warning that any trading platform accessible to Canadians had to stop providing users with “securities.”
Crypto.com’s Tether removal in Canada can be seen as a precautionary measure. Notably, the platform still offers rival stablecoin Circle USD (USDC) to Canadian customers.
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