Crypto.com Removes Tethers USDT Stablecoin for Canadian Users

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Crypto.com, one of the world’s largest exchanges by volume, will delist the dollar-linked stablecoin Tethers, USDT, from its trading platform for Canadian-based users, according to an email sent by the company to customers.

The company made the decision in accordance with instructions from the Ontario Securities Commission (OSC) as part of our pre-registration commitment for a restricted reseller license, an exchange spokesperson said in an email.

All USDT trading pairs, trades, deposits, and withdrawals will be delisted by January 31 at 1 p.m. EST, the email continues. Any remaining USDT user deposits on the exchange after this time will be converted to USDC issued by Circle.

Crypto.com’s action comes as regulators around the world step up scrutiny of centralized exchanges following the dramatic collapse of FTX, while at the same time competition among major stablecoins grows.

The Canadian Securities Administrators (CSA), the country’s top securities regulator made up of regulators from 10 provinces and three territories, said last month it would strengthen its oversight of crypto exchanges by expanding existing requirements for trading venues operating in the country. The ASC said it continues to monitor and assess the presence and role of stablecoins in Canadian financial markets,” according to a press release.

Read more: Canadian Securities Regulators to Strengthen Crypto Oversight After FTX Collapse

USDT is the most popular stablecoin with a market cap of $66 billion, and it competes fiercely for market share with USDC (market cap $44 billion) and Binance USD issued by Paxos (market cap of $16 billion). The token is an integral tool of the cryptocurrency market to facilitate trade, but controversies surrounding its Tether issuer and the assets ostensibly backing its value have abounded in its inception.

Crypto analyst John Paul Koning told CoinDesk that Canadian digital asset trading platforms have historically been reluctant to list USDT. Coinberry banned USDT from its platform, as did Wealthsimple, according to CSA filings in 2021.

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