According to a user report on January 10, cryptocurrency exchange Crypto.com plans to remove Tether (USDT) for Canadian users effective January 31, 2023. According to the company, if users do not withdraw or convert their USDT assets by the deadline, then Tether will automatically converted to USD Coin (USDC).
“You may be subject to withdrawal fees if USDT deposits are made from external wallets after this suspension period, and funds may not be available in some cases.”
In August 2022, Crypto.com announced that the Ontario Securities Commission had accepted the company’s pre-registration to operate in Canada. As part of regulatory requirements, cryptocurrency exchanges operating in the Canadian province of Ontario are prohibited from listing digital assets prohibited by the OSC, which includes USDT. Additionally, Coinsquare, a cryptocurrency exchange regulated by the Investment Industry Regulatory Organization of Canada (IIROC), currently does not list USDT as one of its available trading assets.
crypto dot com to remove USDT pic.twitter.com/3KD0gJlMkE
— chortly (@charlestrussel) January 10, 2023
When publishing its decision, the OSC never explained the reasons for the Tether ban. However, an undisclosed document dated Feb. 17, 2021, states that “the only US dollar held by Tether that actually supports the approximately 442 million tethers in circulation is approximately $61 million in deposits at the Bank of Montreal.” until September 15, 2017. Meanwhile, experts, from time to time, question the authenticity of Tether reserves and their audits.
Currently, all prospective cryptocurrency exchanges must register with IIROC if they wish to operate in Canada. Exchanges such as Binance, Bybit, and Huobi, have faced issues with the OSC in the past regarding their regulatory status.