- Coinbase has suspended trading of three stablecoins in Canada, including USDT, after its recent entry into the Canadian market
- The halted stablecoins, USDT, RAI, and DAI, failed to meet Coinbase’s listing standards based on recent reviews
- Coinbase will still offer the USDC stablecoin and other services in Canada
Coinbase has revealed its decision to suspend trading of three prominent stablecoins in Canada, including the trading of Tether (USDT), shortly after announcing its full-scale entry into the Canadian market. Coinbase’s review found USDT, RAI, and DAI didn’t meet its listing criteria, leading to their trading suspension, with trading to cease on August 31. However, customers can still access and use RAI, DAI, or USDT wallets for deposits and withdrawals.
Coinbase Playing by the Rules
Coinbase announced its arrival in Canada this week and has wasted no time in showing its desire to comply with local regulations. The company’s move echoes rival exchange Crypto.com’s decision earlier this year to halt Canadian USDT support following the Ontario Securities Commission’s (OSC) directives.
The Canadian Securities Administrators (CSA) had previously labeled stablecoins like Tether as securities, leading exchanges to disallow trading for Canadians. Coinbase’s suspension of Tether could be linked to regulatory pressures mirroring these developments.
Notably, Coinbase will continue to provide the USDC stablecoin, the second-largest such asset, to Canadian traders, ensuring options for stable value transactions. Stablecoins, crucial for maintaining steady values in cryptocurrencies, serve as alternatives to national currencies, particularly in areas with limited access to traditional currencies, and support decentralized exchange activities.
Tether Yet to Comment
Tether, with a market cap surpassing $82 billion, is the most used stablecoin but has faced scrutiny over its reserves for years. Despite its trading volume exceeding even that of Bitcoin, Tether’s reliance on attestations rather than an external audit of its reserves continues to raise doubts about its backing. The company is yet to comment on Coinbase’s actions.
Coinbase’s Canadian expansion encompasses diverse services, including support for the nation’s instant electronic payments system, indicating the company’s commitment to the market. In contrast to its U.S. regulatory challenges, Coinbase’s VP of International Business Development, Nana Murugesan, recently pointed out Canada’s engagement-oriented regulatory approach.