Transactions involving Tether will no longer be facilitated on crypto exchange Crypto.com in Canada, as the largest stablecoin in terms of market capitalization will be delisted for users in the country.
A spokesperson for the crypto exchange said that as part of the pre-registration agreement with the Ontario Securities Commission (OSC) for a restricted dealer license, they would not offer Canadian users any USDT features.
On Tuesday, the crypto exchange notified its users in Canada about the change in policy, as images of the notice said to users via email were posted on Twitter and Reddit.
CypherMind-HQ.com Artificial Intelligence Crypto Trading System – Get Ahead of the Curve with this sophisticated AI system! Harness the power of advanced algorithms and level up your crypto trading game with CypherMindHQ. Learn more today!
According to the notice, Crypto.com would end support for Tether on its platform by January 31st, but it did not specify that this would be applicable only to users in Canada.
This resulted in confusion for many users, as evident on social media. The exchange warned in the notice that once the deadline passes, it will not facilitate any deposits, withdrawals or trading in USDT.
The notice urged the users to take immediate action where their USDT balance is concerned in order to avoid any problems.
Once the deadline passes, all USDT balances of the users would be converted ‘automatically’ into USD Coin of Circle, which is another stablecoin pegged to the US dollar.
The exchange further clarified that it may not be possible for customers to retrieve the USDT deposits they make after the deadline, or if it is, then they would charge some fees.
It should be noted that Tether is the largest stablecoin in the crypto space and the third-largest digital asset as per its market capitalization.
Data from CoinGecko shows that Tether has a value of $66 billion. The second largest stablecoin in the market is USD Coin and its total value is $43 billion, but it gained some ground against USDT in the previous year.
Stablecoins are a vital part of the crypto space, as they give people the option of swapping their digital assets for a more stable store of value without requiring any fiat conversion, such as the US dollar.
Crypto.com decided to delist Tether from its platform after the Canadian Standards Association (CAS) gave regulatory clarification in December.
The update had been shared on the website of the Ontario Securities Commission (OSC). It said that the CSA was assessing and monitoring the presence of stablecoins in the capital market in Canada.
Therefore, it said that the CSA has determined that stablecoins have the same status as derivatives or securities.
The post said that any crypto exchanges operating in the country are not permitted to offer Canadian users exposure to any crypto asset that is classified as a derivative or security and cannot offer it for trading either.
Furthermore, the update said that registered crypto exchanges in Canada also have to have their own procedures and systems for determining whether a digital asset is a derivative or a security.
Tether’s website states that it has reserves for backing all its tokens and they are a mix of cash and cash equivalents.