According to an email sent to Canadian users, the popular crypto trading platform Crypto.com is delisting Tether (USDT) for its customers in the North American country. The announcement comes weeks after the Canadian Securities Administrators (CSA) revealed it was broadening its oversight of crypto trading platforms by increasing requirements for operations.
One of the highlighted requirements is that every platform operating within the country must register with the concerned authorities or cease operations. Aside from this, CSA also added that not only is this applicable to firms within its jurisdiction, but it also extends to those outside but serving Canadian customers.
Crypto.com falls into this category and must register with the authorities to continue operating. Such registration will also place the exchange under strict compliance with the laws of the regulators.
Why Delist Tether?
In September, the Ontario Securities Commission (OSC), Canada’s primary financial regulator, ruled that stablecoins may “constitute securities.” Although the regulator did not expressly deem Tether (USDT) as a “security,” it warned that every trading platform available to Canadians was to desist from offering “securities” to users.
Crypto.com’s Tether removal in Canada may thus be a precautionary measure. Notably, the platform still offers rival stablecoin Circle USD (USDC) to Canadian customers.
The Crypto.com Tether delisting will take effect on January 31. Once this happens, the platform says it will instantly convert all leftover USDT balances to USDC. After this date, Crypto.com will no longer accept USDT deposits.
Users who deposit USDT from an external wallet after this suspension period may pay a retrieval fee and sometimes be unable to retrieve the funds. Crypto.com will also remove USDT from recurring purchases and Earn products for customers. The platform will convert any remaining USDT balance from Crypto Earn to USDC and return it to the user’s crypto wallet.
