Cryptocurrency exchange Coinbase will suspend trading on 3 altcoin projects for Canadian users from August 31. Users will be able to continue depositing and withdrawing USDT, DAI and RAI after the deadline. However, trade will be suspended.
Coinbase has announced that it is suspending trading on these altcoin projects!
Cryptocurrency exchange Coinbase has announced that it will suspend trading in Tether (USDT), DAI and RAI stablecoins for Canadian users from August 31. “We regularly monitor assets on our exchange to make sure they meet our listing standards,” Coinbase said in an email notification to users today. Also, based on its review, trading of these altcoin projects will no longer be available to Canadian users from September. However, Canadian users are still able to deposit and withdraw stablecoins after the deadline. Coinbase made the following statement on the subject:
Coinbase Canada, Inc. has applied for registration in certain Canadian jurisdictions. However, it has not yet been registered. Coinbase Canada, Inc. has agreed to abide by the terms of an undertaking until it is registered.
Notice to Canadian users on August 17. Source: CoinbaseCrypto.com also removed this altcoin project from the list!
Earlier this year, other digital asset exchange Crypto.com delisted USDT for Canadian users. The Ontario Securities Commission banned USDT in 2021. However, he never disclosed the reasoning behind the ban. On February 22, the Canadian Securities Administrators (CSA) issued a notice requiring registered crypto exchanges or pending registrations to sign legally binding commitments with the regulatory agency. Among other items, the commitment requires:
Customers are prohibited by CTP [crypto-asset trading platforms] from purchasing or investing Value-Referenced Crypto Assets (often called stablecoins) through crypto contracts without the prior written consent of the CSA.
The only stablecoin approved by the CSA: USD Coin (USDC)
Tether (USDT), a popular altcoin project, is a stablecoin backed by fiat reserves. Meanwhile, DAI exists as a hybrid between fiat and algorithmic stablecoins. RAI, on the other hand, is an algorithmic stablecoin that is not tied to any assets. Currently, the only stablecoin approved by the CSA for listing on centralized crypto exchanges is USD Coin (USDC).
As you follow on Kriptokoin.com, crypto exchange OKX withdrew from Canada in June. The crypto exchange cited new regulations as the reason for exit. Similarly, crypto exchange Binance plans to exit Canada by September.
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