Kraken to delist USDT, DAI, and other stablecoins in Canada

abdelaziz Fathi

Kraken announced plans to suspend transactions involving USDT, DAI, WBTC, WETH, and WAXL within Canada in the next two months. Several other cryptocurrency exchanges have taken similar actions in 2023, discontinuing support for specific assets due to regulatory challenges.

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.

Per a Cointelegraph report, Kraken currently scrutinizes the assets they offer to ensure that they adhere to the compliance benchmarks within the dynamic realm of cryptocurrency.

Furthermore, regulatory roadblocks that seemed to plague these exchanges might also be the culprits behind some platforms choosing to exit the Canadian market entirely. In August, Coinbase ceased trading Tether, Dai, and Rai, while also delisted Tether earlier.

Additionally, exchanges like OKX and Binance have withdrawn from the Canadian market entirely. Other notable exchanges that followed suit include Bybit, Paxos, dYdX, and Bittrex.

However, in Kraken’s scenario, the exit strategy does not seem to be on the cards. The platform is indicating its intention to persevere with its Canadian operations, albeit with a temporary halt on transactions for certain digital assets.

Canada’s primary securities governing body provided further details on its interim approach towards the trading of stablecoins, dubbing them as value-referred cryptoassets. Earlier this month, the CSA recognized the increasing relevance of stablecoins for Canadian users.

Building on this recognition, the CSA said it could allow trading of certain stablecoins that are pegged to a solitary fiat currency. These specific stablecoins, termed as fiat-backed cryptoassets, would be permitted to be traded under stipulated terms and conditions.

Drafted after taking into consideration feedback from various players in the Canadian cryptocurrency domain, these temporary terms primarily address concerns related to safeguarding investors in the context of stablecoin transactions.

As per these conditions, it’s mandatory for stablecoin issuers to maintain a suitable reserve of assets with a regulated custodian to protect the interests of cryptoasset holders. Moreover, both the issuers and the trading platforms offering these stablecoins are required to disclose information regarding their governance, operations, and asset reserves to the public at large.

Earlier this year, in February, the CSA took a stringent stance against crypto trading platforms, prohibiting them from enabling the purchase or deposit of stablecoins without acquiring regulatory approval in advance.

Adding to this, the CSA issued a month-long deadline for unlicensed crypto trading entities operating in Canada, compelling them to initiate the registration process or halt their operations within the nation’s borders.

Read this next

Digital Assets

Binance to phase out BUSD support in two weeks

Binance has announced its plans to gradually phase out support for its native stablecoin, BUSD (Binance USD) by December 15, 2023. This move comes after Paxos, the issuer of BUSD, decided to stop minting new tokens.


Binance Labs invests $3.15M in Open Campus to advance Web3 education

Binance Labs, the venture capital arm of the cryptocurrency giant Binance, has invested $3.15 million in Web3 education platform Open Campus.

Institutional FX

Brighty App unveils EU B2B payment platform amidst exploding market

Brighty App is set to launch its European B2B platform, Brighty Business, this month. This platform is geared towards improving how businesses handle their financial operations, especially in the digital banking and cryptocurrency domains.

Digital Assets

Celsius’ withdrawal process slowed by overwhelming demand

Bankrupt crypto lender Celsius is taking steps to allow certain customers to withdraw their funds. However, some users have reported difficulties in logging in to process their withdrawals, as indicated by posts on various social media platforms.

Digital Assets

Cristiano Ronaldo hit with $1 billion lawsuit over Binance NFTs

Cristiano Ronaldo, the renowned footballer, is facing a class-action lawsuit in the United States over his promotion of Binance, the world’s largest cryptocurrency exchange.

Digital Assets

Zipmex creditors offered 3.35 cents on the dollar payout

Zipmex, a Thai crypto exchange grappling with financial difficulties, has proposed a restructuring plan to repay its creditors.

Digital Assets

FSB warns of risks posed by multifunction crypto-asset intermediaries

The report on Multifunction Crypto-Asset Intermediaries (MCIs) provides an in-depth analysis of these entities which combine various crypto-asset services and products, typically centering around a trading platform. These services can include proprietary trading, investment functions, issuance, promotion, and distribution of crypto-assets, including stablecoins.

Retail FX

Indonesia launches PosPay Gold: a Sharia-compliant physical gold trading app powered by Kinesis

“Partnerships like the just realized POSPay Gold in Indonesia will revolutionize the global monetary system and economy and will enable citizens to have access to trading in gold while being sharia-compliant and having the freedom to realize their everyday financial needs.”

Retail FX

Webull acquires Flink to enter Mexican market ahead of further LATAM expansion

“Given our success in the United States and the establishment of our global headquarters in St. Petersburg, Florida, the Mexican market is a natural next step in our efforts to democratize finance for investors across the world. We anticipate using Mexico as a springboard into greater Latin and South America, where we believe there is a strong desire among retail investors to access global markets.”