Coinbase halts trading on three major stablecoins
Coinbase, the US-based cryptocurrency exchange, is set to suspend trading with stablecoins RAI Reflex Index (RAI), Dai (DAI), and Tether (USDT) for Canadian users starting from August 31, 2023.
Coinbase said the decision comes amid ongoing asset review process to ensure compliance with listing criteria and align with regulatory standards in Canada.
While Canadian users will lose the ability to trade these stablecoins on the platform, Coinbase clarified that they will still be able to access their RAI, DAI, or USDT wallets. Depositing and withdrawing these stablecoins will also be accommodated after the trading suspension.
While stablecoins’ ousting might seem significant, the move doesn’t affect Coinbase’s global entities. However, Canadian users need to act by the deadline, either to withdraw or convert their assets.
The statement notes, “The trading suspension will not affect customers’ access to RAI, DAI, or USDT wallets which will remain available for deposit and withdrawal functionality after the trading suspension.”
The move follows Coinbase’s push to strengthen its presence in the Canadian market, where it has launched various offerings to appeal to its clientele. America’s largest crypto exchange launched its operations in the country earlier this week. This expansion introduces a host of exciting features for Canadian users, including a 30-day complimentary trial of its subscription-based service with zero trading fees and higher staking rewards.
The suspension of trading for these stablecoins in Canada mirrors similar actions taken by other exchanges, such as Crypto.com. The latter delisted Tether’s stablecoin (USDT) trading, transactions, deposits and withdrawals for Canadian customers.
The write-off of the world’s largest and most liquid stablecoin came as the Ontario Securities Commission (OSC) has banned crypto exchanges operating in the region from touching Tether (USDT). The decision dates back to 2021 when the stablecoin was deeply linked to alleged market manipulation, and it was the only prohibited digital asset in the country.
Crypto.com’s late compliance comes as part of their pre-registration undertaking for a restricted dealer license. To continue operating while their application is being processed, cryptocurrency platforms must give their primary regulator a pre-registration undertaking. By making these commitments, Crypto.com acknowledges that its platform is bound by terms and conditions that address investor protection issues.