Crypto.com, one of the world’s top exchanges by volume, will delist Tether’s dollar-linked stablecoin, USDT, from its trading platform for users in Canada, according to an email sent by the firm to customers.
The company made the decision “in accordance with instructions from the Ontario Securities Commission (OSC) as part of our pre-registration undertaking for a restricted dealer license,” a spokesperson for the exchange said in the email.
All USDT trading pairs, transactions, deposits and withdrawals will be delisted by 1 p.m. ET on Jan. 31, the email continues. All remaining USDT user deposits on the exchange after that time will be converted to Circle-issued USDC.
Crypto.com’s action comes as regulators around the world are increasing their scrutiny of centralized exchanges in the wake of the collapse of FTX and as competition between the top stablecoins grows.
The Canadian Securities Administrators (CSA), the country’s top securities regulatory body consisting of regulators from 10 provinces and three territories , said last month it would strengthen its oversight over crypto exchanges by “expanding existing requirements” for trading platforms operating in the country. The CSA said that it “continues to monitor and assess the presence and role of stablecoins in Canadian capital markets,” according to a press release.
USDT is the most popular stablecoin with a market capitalization of $66 billion, and it competes with USDC ($44 billion market cap) and the Paxos-issued binance USD ($16 billion market cap). The token is an integral tool for the cryptocurrency market to facilitate trading, but controversies around its issuer, Tether, and the assets ostensibly backing its value have abounded for as long as it has been around.
Crypto analyst John Paul Koning told CoinDesk that Canadian digital-asset trading platforms have been historically reluctant to list USDT. Coinberry prohibited USDT from its platform, as did Wealthsimple, according to documents filed to the CSA in 2021.