Following OSC Prohibition, Crypto.com Delists USDT For Canadians
Luisa Crawford Jan 11, 2023 00:01
Effective January 31, Crypto.com will delist Tether (USDT) for Canadian customers. The exchange has warned users that their Tether would be automatically changed into USD Coin if they don't withdraw or convert before the deadline (USDC). Crypto.com reported in August that the Ontario Securities Commission has approved its Canadian pre-registration commitment.
As of the 10th of January, user reports that were circulating on social media suggested that the cryptocurrency exchange Crypto.com had intentions to delist Tether (USDT) for customers in Canada beginning on the 31st of this month. These reports originated from the cryptocurrency exchange's customers.
Customers of the exchange have been informed that if they miss the deadline for withdrawing or converting their USDT assets and instead let the exchange do it for them, their Tether will be automatically converted into USD Coin (USDC)
In August, Crypto.com made the announcement that the Ontario Securities Commission had given the company the green light to move forward with its pre-registration undertaking for the purposes of conducting business in Canada.
It is against the rules of the regulatory framework for cryptocurrency exchanges in the province of Ontario, which is found in the nation of Canada, to offer digital assets that are prohibited by the Ontario Securities Commission (OSC). This is because Ontario is a part of Canada. This incorporates the USDT.
Coinsquare, a cryptocurrency exchange that is governed by the Investment Industry Regulatory Organization of Canada (IIROC), does not at this time include USDT as one of the assets that may be traded on its platform. This is similar to the aforementioned scenario.
When it came time for the OSC to issue its ruling, the organization never offered a justification for why it had come to the conclusion that tethering should be restricted.
According to a document that was made public on February 17, 2021, it was stated that the only United States dollars owned by Tether that were presumably supporting the approximately 442 million tethers that were circulating were the approximately $61 million that were on deposit at the Bank of Montreal. There have been a number of professionals in the industry who have, on occasion, cast doubt on the veracity of Tether's reserve holdings as well as audits.
The Investment Industry Regulatory Organization of Canada (IIROC) requires registration from any potential cryptocurrency exchange that intends to start doing business in Canada at this time.
In the past, the Ontario Securities Commission (OSC) has questioned the regulatory status of a number of cryptocurrency exchanges, including Binance, Bybit, and Huobi, which has led to a number of disagreements between the two parties.
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