Against the backdrop of the new regulatory frameworks by the Ontario Securities Commission (OSC), Crypto.com exchange has disclosed plans to delist Tether (USDT) for users only in Canada as per reports.
It was gathered that the decision would become effective on Jan. 31, 2023. The decision was not unconnected to the recent steps taken by the OSC to place a ban on Tether.
Meanwhile, the decision is not binding on Crypto.com exchange alone as all crypto exchanges in Ontario, Canada, have been mandated to delist USDT due to the ongoing regulatory prohibition.
As a result, Crypto.com maintained that users that are yet to withdraw or convert their USDT assets before the slated deadline would have their Tether converted into USD Coin (USDC).
In the same vein, retrieval fees may be incurred if deposits of USDT are made from external wallets after the suspension period. Thus, fund retrieval may be an impossible feat to achieve during the period.
It is instructive to note that Crypto.com still supports Tether (USDT) trading pairs in other countries for its users.
Crypto.com Foray in Canada
Not too long ago, Crypto.com exchange recorded its debut in Canada. In August 2022, Crypto.com disclosed that the Ontario Securities Commission had approved the firm’s pre-registration in order to commence operations in Canada.
Since then, the crypto exchange has recorded seamless operations in the country. In compliance with the new OSC policy, competing exchange Coinsquare crypto exchange has revealed that it no longer supports USDT as one of its available trading assets.
While OSC has perennially refused to provide justification for its action, a document unsealed on Feb. 17, 2021, revealed that the U.S. dollars held by Tether backing close to 442 million tethers is largely incongruent and insufficient.
Consequently, eyebrows have been raised over the authenticity of Tether’s reserves and its audits. More light should be thrown on it in order to avert catastrophic influences on the crypto market.
