On Aug. 17, Coinbase, a crypto exchange, will discontinue the trading of USDT, DAI, and RAI stablecoins for its Canadian users from September 2023. This is days after launching operations in the country.
Accompanying this announcement, Coinbase said they conduct routine evaluations of assets to verify their adherence to listing standards.
Canadian clients can, however, continue depositing and withdrawing these stablecoins before September despite the trading suspension.
Clarifying its current status, Coinbase stated:
“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.”
Crypto.com, a crypto exchange, has also delisted USDT for Canadian users. This follows the Ontario Securities Commission’s decision in 2021 to impose a ban on USDT, although the underlying reason remains undisclosed.
The Canadian Securities Administrators (CSA) unveiled a notice on Feb. 22 requiring crypto exchanges, either registered or awaiting registration, to formalize legally binding commitments with the oversight authority.
A salient directive within these guidelines states:
“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.”
USDT is backed 1:1 with USD while DAI combines elements of both fiat and algorithmic stablecoins. In contrast, RAI is a purely algorithmic stablecoin, independent of any asset linkage.
Currently, USDC is the only CSA-endorsed stablecoin for trading on centralized cryptocurrency exchanges.