Coinbase has declared its intention in an email to customers to suspend trading for three widely used stablecoins in Canada, which includes trading of the largest stablecoin, Tether (USDT).
Coinbase Has Declared To Suspend Trading For Three Widely Used Stablecoins In Canada
Coinbase has declared its intention in an email to customers to suspend trading for three widely used stablecoins in Canada, which includes trading of the largest stablecoin, Tether (USDT).
Following its recent expansion into the Canadian market, evaluations of the impacted stablecoins Tether (USDT), RAI, and DAI show that they do not meet Coinbase's listing requirements. Customers will still be able to deposit money into and withdraw it from their RAI, DAI, or USDT wallets during this trading stoppage, which is scheduled to start on August 31 at around 12 p.m. eastern time.
This action by Coinbase is consistent with the precedent set by Crypto.com, which stopped supporting Canadian USDT in response to directives from the Ontario Securities Commission (OSC). Additionally, after the Canadian Securities Administrators (CSA) defined their position on stablecoins as securities, exchanges were forbidden from enabling Canadian customers to trade such assets. This regulatory pressure may have influenced Coinbase's decision to remove Tether from its Canadian platform.
Notably, Canadian traders on the platform will continue to have access to USDC, the stablecoin developed by Circle and Coinbase. Stablecoins, which act as dollar substitutes in areas with limited access to the US dollars, are digital tokens that are linked to physical assets to guarantee price stability. Tether has, however, been under fire for its controversial past surrounding reserve checks, although it now releases public audits.
