Coinbase Waves Goodbye to USDT, DAI, and RAI: What's Next for Canadian Crypto Traders?
A seismic shift is underway in the Canadian cryptocurrency scene as Coinbase, a renowned crypto exchange, announced its decision to cease the trading of USDT, DAI, and RAI stablecoins for its Canadian users, effective from September 2023. This significant move comes on the heels of Coinbase's recent expansion into the Canadian market, making it a development that has caught both traders and industry observers off guard.
Revealing the motivation behind this unexpected move, Coinbase emphasized its commitment to maintaining a high standard of asset listings through routine evaluations.
JUST IN:— Whale (@WhaleChart) August 17, 2023
Coinbase to suspend USDT trading for all users from Canada
While Canadian clients will be disheartened by the suspension of trading, the exchange has assured them that depositing and withdrawing these stablecoins will still be possible until September, providing a temporary solace amid the changes.
Clarifying the company's position, Coinbase conveyed:
"While the journey toward full registration of Coinbase Canada, Inc. is well underway, the ultimate destination is yet to be reached. Until formal registration is achieved, the company remains steadfast in honoring its existing commitments."
Crypto enthusiasts in Canada are no strangers to the turbulence surrounding stablecoins, as Crypto.com, another prominent crypto exchange, has also recently removed USDT from its offerings. This decision is rooted in the 2021 ban on USDT by the Ontario Securities Commission, a move that continues to intrigue due to its undisclosed rationale.
Taking a step further, the Canadian Securities Administrators (CSA) entered the fray with a notable directive on February 22. The mandate requires both registered and pending-registration crypto exchanges to establish legally binding agreements with the regulatory authority. A pivotal aspect of these guidelines enforces prior written approval from the CSA for the purchase or deposit of Value-Referenced Crypto Assets, or stablecoins, via crypto contracts on crypto asset trading platforms (CTPs).
While USDT, with its 1:1 USD backing, has been the stalwart of the stablecoin realm, DAI has emerged as a hybrid, blending fiat and algorithmic stability mechanisms. In stark contrast, RAI stands as a purely algorithmic stablecoin, untethered to any physical asset.
Notably, within the CSA's framework, USDC remains the sole CSA-endorsed stablecoin eligible for trading on centralized cryptocurrency exchanges.
The Canadian cryptocurrency landscape finds itself at a crossroads with the unexpected decision by Coinbase to delist USDT, DAI, and RAI for its Canadian users. As the industry navigates this intriguing development, traders and stakeholders will undoubtedly keep a watchful eye on how the regulatory landscape and stablecoin market evolve in this new era of crypto trading. Amid uncertainty, one thing remains clear: the crypto world continues to be a realm of rapid transformation and endless possibility.