Coinbase has decided to halt trading of prominent stablecoins, namely USDT, Dai, and RAI, for its Canadian users.
Cryptocurrency exchange Coinbase said that starting in September 2023, it would no longer allow Canadian users to trade the stablecoins USDT, DAI, and RAI.
Days have passed since operations began in the nation. With this revelation, Coinbase stated that they regularly assess assets to ensure compliance with listing rules.
Despite the stoppage of trading, Canadian customers can still deposit and withdraw these stablecoins until September.
“While Coinbase Canada, Inc. has initiated its application for registration in various Canadian provinces, the process is yet to culminate. Until the final registration is secured, the company is committed to upholding the clauses of an existing undertaking.”
Additionally, the cryptocurrency exchange Crypto.com delisted USDT for Canadian users. This comes after the Ontario Securities Commission decided to forbid USDT in 2021, albeit the underlying cause was never made public.
On February 22, the Canadian Securities Administrators (CSA) published a notice requiring cryptocurrency exchanges to create legally binding agreements with the regulatory body, whether they are registered or waiting to be registered.
“Crypto asset trading platforms (CTPs) are prohibited from allowing clients to purchase or deposit Value-Referenced Crypto Assets, commonly known as stablecoins, via crypto contracts without acquiring prior approval in writing from the CSA.”
In contrast to DAI, which mixes aspects of algorithmic stablecoins and fiat stablecoins, USDT is backed 1:1 by USD. RAI, on the other hand, is a wholly algorithmic stablecoin that is unrelated to any asset correlation. The only stablecoin supported by the CSA that may be traded on centralized cryptocurrency exchanges is USDC.
