Cryptocurrency exchange, Crypto.com, has decided to cut ties with the popular stablecoin Tether (USDT), pegged to the U.S. dollar; at least in Canada.
Crypto.com, which is one of the world's largest exchanges by trading volume, announced Tuesday to its users in Canada that it will eliminate USDT trading. Canadian customers will no longer have access to USDT trading pairs, transactions, deposits and withdrawals as of 1 p. m. ET on Jan. 31, the company stated in an email.
Some users shared screenshots of Crypto.com's email telling them about the new measure. The company urged its customers to withdraw or convert their USDT holdings before the deadline. Failure to take action will result in funds in that asset being automatically converted into USDCoin (USDC).
You may incur a recovery fee if USDT deposits are made from external wallets after this suspension period, and funds recovery may not be possible in some cases.
According to reports, the move comes in response to regulations imposed by Canada's financial regulators. As part of the regulatory requirements, cryptocurrency exchanges operating in the Canadian province of Ontario are prohibited from listing digital assets banned by the CSO, which includes USDT, Cointelegraph notes.
Crypto.com, which registered with the OSC last year, told CoinDesk that the decision to remove USDT is in response to "instructions from the Ontario Securities Commission (OSC) as part of our pre-registration commitment for a restricted dealer license." A spokesperson for the platform provided the statements to that newspaper.
The news comes shortly after the country's top securities regulator announced last month that it would strengthen its oversight over cryptocurrency exchanges by "expanding existing requirements" for trading platforms operating on Canadian soil, as CoinDesk recalls.
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