USDT is the world’s most important stablecoin, but apparently no longer in Canada. Crypto.com had to delist the altcoin project to comply with regulations in the country. Here are the details…
Crypto.com delists popular altcoin and stablecoin USDT
On January 9, Crypto.com announced that USDT, the most important stablecoin in the crypto ecosystem, has been delisted in Canada to comply with the country’s regulations. Several users on Reddit and Twitter reported that Crypto.com sent out an email informing Canadian users of the decision. According to the statement, users will have until January 31 to withdraw USDT or exchange it for another currency. If users take no action, all USDT balances will be automatically converted to Circle’s USDC stablecoin.
Users confirmed that Canadian regulators issued a statement in late December declaring that registered or pending cryptocurrency platforms do not allow Canadian customers to trade cryptocurrencies that “are themselves a security and/or derivative.” The following statements were included in the notice sent to users:
Crypto.com has delisted USDT for users in Canada in accordance with instructions from the Ontario Securities Commission (OSC) as part of our pre-registration commitment for a limited-seller license. As a result of this ongoing work, the CSA considers that stablecoins or stablecoin arrangements can create securities and/or derivatives. Crypto trading platforms that are registered or under a pre-registration commitment are reminded that Canadian customers are prohibited from allowing trading or exposure to any crypto assets that are securities and/or derivatives.
Tether’s reserve discussions: What was the community’s speculation?
For many users, the delisting of USDT in Canada was seen as an indication of what could happen globally if regulators in other countries decided to attack cryptocurrencies with more burdensome regulation. Others argued that the delisting was due to Crypto.Com’s good relationship with USDC issuer Circle, and that it was a “business deal” to eliminate competition.
It is not yet clear whether other major exchanges in Canada are doing the same. Additionally, Crypto.com came to the fore late last year over concerns about its reserves being heavily backed by illiquid tokens. Meanwhile, other users have reported that delisting USDT is a “big problem for Canadians,” as it leaves customers less options to earn interest on their money.
cryptocoin.com Tether remains the world’s largest stablecoin, with a circulating supply of 66.3 billion USDT. All in all, this gives it a 48 percent market share. After a 21.6 percent contraction in supply from May to November 2022, Tether’s supply began to increase slightly. The second-ranked Circle has a 32 percent market share with 43.7 billion USDC currently in circulation. There was also a 22 percent reduction in supply in 2022.
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