Would USDT no longer be welcome in Canada? Crypto.com has just sent a statement to its Canadian users, explaining that they will soon no longer be able to access Tether’s stablecoin. Why has this decision been made
Tether’s USDT delisted for Canadian Crypto.com users
Many users have reported receiving an email from Crypto.com informing them that USDT would no longer be supported. The email, which did not immediately mention the geographical area, caused a small amount of panic… Before we learn that USDT will be banned “in your jurisdiction” according to the email, i.e. Canada:
– Giancarlo Cecco (@GiancarloCecco) January 10, 2023
Tether (USDT) will no longer be supported on the Crypto.com application. […] All USDT transactions will be suspended. “
The company reports that it made this decision in accordance with instructions from the Ontario Securities Commission (OSC), the equivalent of the US SEC. Users have until January 31 to transfer their USDTs. After that time, they will automatically be exchanged for USDC.
Canada historically shy of Tether’s USDT
Historically, Canada’s exchange platforms have sometimes been reluctant to list USDT. Two local services, Coinberry and Wealthsimple, have stopped offering USDT on their platforms during 2021. In addition, Canadian securities regulators indicated last month that they would be monitoring stablecoins more closely, particularly in light of the FTX collapse.
Discontinuing to offer USDT on an exchange platform is not trivial. Tether offers the largest dollar stablecoin, with a capitalisation that currently stands at $66 billion. This shows the ecosystem’s distrust of it, which is not new, but has been renewed since the fall of the Terra ecosystem and its stablecoin UST.
Tether had to communicate in November to reassure a community worried about a possible “depeg”: the USDT had then lost parity with the dollar and briefly touched 0.96 dollar. But stablecoin remains the most widely used, and even had the luxury of worrying its rival USDC a few weeks ago.
There is little chance that USDT will be delisted from all Crypto.com, but the move is still a reminder of the key role stablecoins have for the ecosystem, as well as the need for them to be robust… And accessible.