The crypto world has been shaking up with the Crypto.com delisting USDT news. So why is USDT, which is seen as the most popular stablecoin in the world, delisted?
According to an email provided to consumers by the company, one of the largest exchanges in the world by volume, Crypto.com, will remove the dollar-linked stablecoin USDT from its trading platform for Canadian users.
In the email, a representative for the exchange stated that the decision was made “in compliance with instructions from the Ontario Securities Commission (OSC) as part of our pre-registration commitment for a limited dealer license.”
The email reads, “All USDT trading pairs, transactions, deposits, and withdrawals will be delisted by 1 p.m. ET on January 31. After that, all USDT user deposits on the exchange will be converted to USDC which is issued by Circle.
Why is Crypto.com delisting USDT?
The move by Crypto.com comes as top stablecoins are becoming more competitive and regulators around the world are scrutinizing centralized exchanges more closely in the wake of FTX’s demise and now the crypto world has seen the Crypto.com delisting USDT news.
The Canadian Securities Administrators (CSA), the nation’s top securities regulatory body made up of regulators from 10 provinces and three territories, announced last month that it would increase existing requirements to strengthen its oversight of cryptocurrency exchanges “for in the nation running trading platforms. The Canadian Securities Administrators (CSA) stated that it “continues to monitor and examine the presence and role of stablecoins in Canadian capital markets, “on the basis of a press statement.
What is USDT?
With a market valuation of $66 billion, USDT is the most widely used stablecoin, followed by USDC ($44 billion) and the Paxos-issued Binance USD ($16 billion). The coin is a crucial trading tool for the cryptocurrency market, but there have long been questions about its issuer, Tether, and the assets that purport to support its value.
Stablecoins are crucial to the cryptocurrency ecosystem because they allow users to exchange their cryptocurrencies for a more reliable store of value without having to transfer their digital assets into so-called fiat currency like the US dollar.
What does CSA have to say about Crypto.com delisting USDT?
Following regulatory clarification from the Canadian Standards Association (CSA) in December, Crypto.com decided to delist Tether. The Ontario Securities Commission’s website has the update.
“The CSA continues to monitor and assess the presence and role of stablecoins in Canadian capital market,”
“As a result of this ongoing work, the CSA is of the view that stablecoins, or stablecoin arrangements, may constitute securities and/or derivatives.”
-Canadian Standards Association
The blog article emphasized that Canadian bitcoin exchanges are: “prohibited from permitting Canadian clients to trade, or obtain exposure to, any crypto asset that is itself a security and/or a derivative.”
The update also indicated that it is the responsibility of registered cryptocurrency exchanges to have their own systems and processes in place for identifying whether a digital asset is a security or derivative.
Canadians are furious about Crypto.com delisting USDT news
When we look at the Crypto.com delisting USDT Reddit title, it is clearly seen that Canadian citizens are complaining about the situation. The impact of social media on business is indisputable, but we don’t think the CSA will back down. You may see some Reddit users’ reactions to the Crypto.com delisting USDT news below.
”They leave us Canadians with less and less options to get interest on our money. I’m new to defi still but I doubt that USDC is gonna give us better return on liquidity pools than tether. Defi will be less profitable for the average Joe with this kinda changes.”
”This is not encouraging for USDT at all. Shit is about to go down. Yes I know it’s Canada only but USDT cannot become the trusted stablecoin of “crypto” if western countries such as Canada effectively outlaw it. It sets a precedent.”
Our X news ends here. If you have been following the crypto world for a long time, we think you will understand Crypto.com’s decision. But if you have decided to enter this market in 2023, if you take a look at our news about the sensational FTX scandal of 2022, you can more easily understand the decisions taken in the market.