On August 17th, Coinbase announced that it would halt trading of Tether (USDT), Dai (DAI), and RAI stablecoins for Canadian users starting August 31st. This move comes in response to changing regulatory requirements in Canada, where authorities have been tightening their grip on the crypto industry.
Following the path of Crypto.com, which earlier suspended USDT trading after the Ontario Securities Commission (OSC) imposed a ban in 2021, Coinbase seeks to align with Canadian regulatory standards.
Exchanges adjust to new regulations
The recent increase in Canadian regulators‘ focus on cryptocurrency exchanges has forced several companies to adjust their strategies or flee the country. Due to regulatory issues, OKX and Bittrex Global have already gone, and Binance aims to do the same in September.
Coinbase is adamant about getting a foothold in the Canadian market. Although trading in stablecoins has been temporarily halted, the exchange has added support for Interac e-Transfer to make it easier for customers to make deposits and withdrawals.
Thanks to the country’s widespread crypto literacy and thriving technology sector, Coinbase is still confident in Canada’s future as a global leader in the cryptocurrency industry.
Coinbase Canada, Inc. has committed to complying with regulatory requirements while waiting for registration permission from the Canadian Securities Administrators (CSA). The exchange specified that Canadian users can still deposit and withdraw the concerned stablecoins beyond the deadline, even if trading has been suspended.
Canadian stablecoins: the road ahead
The Canadian Securities Administrators have only cleared USD Coin (USDC) for listing on controlled crypto exchanges. Companies anticipate a more nuanced and future-focused approach to financial access as the regulatory landscape shifts.
Fostering innovation while maintaining a secure, compliant consumer ecosystem is a delicate balancing act in Canada’s rapidly evolving crypto landscape. Coinbase‘s decision to halt stablecoin trading is just one reaction by markets to the shifting legal landscape in the nation. Canada’s cryptocurrency exchanges will undoubtedly undergo more service and operational modifications as the sector develops.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
