Leading cryptocurrency exchange oinbase">Coinbase announced this week that it will suspend trading of three popular stablecoins – Tether (USDT), DAI, and RAI for users in Canada starting August 31st. The company said these assets no longer meet its listing standards, likely due to recent guidance from Canadian regulators classifying stablecoins as securities.
This move comes right after oinbase">Coinbase touted its full entry into the Canadian crypto market, including support for trading Tether – the world’s largest stablecoin. However, oinbase">Coinbase’s own USD-pegged stablecoin USDC will continue being available to Canadian users.
The suspension mirrors actions taken by Crypto.com earlier this year, when it halted Tether trading in Canada following instructions from the Ontario Securities Commission. Canadian regulators view stablecoins like USDT as securities that cannot be freely traded on exchanges without proper oversight.
Stablecoins are integral to crypto markets, acting as dollar proxies for traders. Tether is the most widely used, with a market cap over $82 billion. But its lack of transparency around reserves has raised questions.
oinbase">Coinbase’s decision indicates it is buckling to regulatory pressure in removing Tether support in Canada, despite recently praising Canada’s “regulation by engagement” approach as more welcoming than the US. The move contrasts with rival Binance, which exited Canada altogether due to guidance on stablecoins.
