Coinbase Delists USDT, DAI, and RAI Stablecoins for Canadians

Coinbase Suspends Trading of Stablecoins for Canadian Users

Coinbase will discontinue the trading of USDT, DAI, and RAI stablecoins for its Canadian users from September 2023
Coinbase conducts routine evaluations of assets to verify adherence to listing standards
Canadian users can still deposit and withdraw stablecoins before September despite the trading suspension
Crypto.com has also delisted USDT for Canadian users following a ban imposed by the Ontario Securities Commission
The Canadian Securities Administrators (CSA) require crypto exchanges to formalize legally binding commitments with the oversight authority

Reason for Suspension and Availability

The suspension of USDT, DAI, and RAI trading for Canadian users on Coinbase is due to the exchange’s routine evaluations of assets. However, Canadian users can still deposit and withdraw these stablecoins until September. Crypto.com has made a similar decision to delist USDT for Canadian users, likely as a result of the ban imposed by the Ontario Securities Commission.

CSA Guidelines and Approved Stablecoin

The Canadian Securities Administrators require crypto exchanges to formalize legally binding commitments with the oversight authority. The guidelines prohibit crypto asset trading platforms from allowing clients to purchase or deposit stablecoins without prior approval from the CSA. Currently, the only CSA-endorsed stablecoin for trading on centralized cryptocurrency exchanges is USDC.

Implications for Canadian Crypto Users

The suspension of USDT, DAI, and RAI trading on Coinbase and Crypto.com may impact Canadian users who rely on these stablecoins for their crypto transactions. It is important for Canadian crypto users to stay updated on regulatory changes and seek alternative stablecoin options approved by the CSA.

Hot Take

The decision by Coinbase and Crypto.com to suspend the trading of certain stablecoins for Canadian users highlights the increasing regulatory scrutiny in the crypto industry. This move shows the importance of adhering to listing standards and regulatory requirements to maintain a presence in the Canadian market. Canadian crypto users will need to adapt to these changes and explore alternative stablecoin options that are compliant with the guidelines set by the Canadian Securities Administrators.