Crypto.com Halts USDT Trading, Deposits and Withdrawals

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Crypto.com has informed its Canadian customers that it plans to delist trading, transactions, deposits and withdrawals of stablecoin Tethers (USDT) by the end of this month.

Although the eviction of Tethers may seem significant, this decision does not affect the global entities of Crypto.com. However, Canadian users must act before the deadline either to withdraw or convert their USDT assets. Otherwise, any remaining USDT holdings will be automatically converted to Circle-issued USD coins (USDC).

You may incur recovery fees if deposits of USDT are made from external wallets after this suspension period, and recovery of funds may not be possible in some cases, the company said in an email sent. to customers.

The delisting of the world’s largest and most liquid stablecoin comes as the Ontario Securities Commission (OSC) banned crypto exchanges operating in the region from touching Tether (USDT). The decision dates back to 2021, when the stablecoin was deeply linked to alleged market manipulation, and it was the only digital asset banned in the country.

Crypto.com’s late compliance is part of its pre-registration commitment for a restricted reseller license. To continue operating while their application is being processed, cryptocurrency platforms must give their primary regulator a pre-registration commitment. By making these commitments, Crypto.com acknowledges that its platform is bound by terms and conditions that address investor protection issues.

If a cryptocurrency trading venue is unable to file a commitment or fails to meet its requirements, CSA members can take legal action.

The new registration comes amid a nationwide crackdown on unregulated exchanges. Binance, the world’s largest cryptocurrency exchange, informed a Canadian provincial regulator last year that it would no longer accept new clients. The industry giant has apparently chosen to pull out of Ontario, rather than comply with securities law or face regulatory scrutiny.

The Ontario securities watchdog also said Binance has committed to cease trading for existing Ontario-based accounts. Faced with the threat of regulatory sanctions, the exchange updated its terms of service, declaring Ontario a restricted jurisdiction. As a result, Binance blocked services in Canada’s most populous province and urged Ontarians to take immediate action to close their trade positions.

The OSC statement went on to warn that it had contacted other crypto-asset trading platforms to initiate the registration process or face enforcement action, including temporary orders.

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