Coinbase Suspends USDT Trading for Canadian Users
Coinbase to Suspend USDT Trading for Canadian Customers
• Cryptocurrency exchange Coinbase will suspend trading of the Tether (USDT), Dai (DAI) and RAI stablecoins for Canadian users beginning Aug. 31.
• The Ontario Securities Commission banned USDT in 2021, though it never explained the rationale behind the ban.
• Crypto exchanges OKX and Binance are both scheduled to withdraw from Canada by September.
Background
Cryptocurrency exchange Coinbase will suspend trading of the Tether (USDT), Dai (DAI), and RAI stablecoins for Canadian users beginning Aug. 31. In an Aug. 17 email notice to users, Coinbase said, ”We regularly monitor the assets on our exchange to ensure they meet our listing standards,” and based on its review, trading of these three stablecoins will no longer be available to Canadian users starting September.
The exchange officially launched its Canadian subsidiary just days prior, although services were available to Canadian customers before then. Canadian users can still deposit and withdraw the stablecoins after the deadline.
Regulations
In February 2021, the Canadian Securities Administrators (CSA) published a notice requiring registered crypto exchanges or those pending registration to sign legally binding undertakings with the regulatory body. Among other items, this undertaking requires a prohibition on clients buying or depositing Value-Referenced Crypto Assets (commonly referred to as stablecoins) through crypto contracts without prior written consent of the CSA. As a result of this regulation, fellow digital asset exchange Crypto.com delisted USDT for Canadian users earlier this year; similarly, crypto exchanges OKX and Binance are both scheduled to withdraw from Canada by September as well.
At present, only one stablecoin is approved by CSA for listing on centralized crypto exchanges: USD Coin (USDC).
Summary
Cryptocurrency exchange Coinbase will be suspending trading of Tether (USDT), Dai (DAI), and RAI stablecoins for all Canadians beginning August 31st 2021 due to regulations set forth by CSA that restrict purchasing or depositing value-referenced crypto assets without prior written consent from CSA itself. Fellow digital asset exchanges such as Crypto .com have already delisted USDT for their Canadian customers while others such as OKX and Binance are scheduled to withdraw from Canada entirely by September 2021 in response to these new regulations; currently only one stablecoin is approved by CSA: USD coin ( USDC ).
Conclusion
Canadian customers can still deposit and withdraw any of these three aforementioned stable coins even after the deadline set forth has passed but won’t be able access any form of trading services until further notice from Coinbase themselves or new regulations issued by CSA regarding cryptocurrency assets within Canada’s jurisdiction .
