Crypto exchange Kraken has announced it will be suspending all trading, deposits, and withdrawals of major stablecoins like Tether’s USDT and Wrapped Bitcoin (WBTC) in Canada starting November 30th. The company cited regulatory requirements behind the move, following similar clampdowns on stablecoin trading by Canadian exchanges oinbase">Coinbase and Crypto.com this year.
Kraken outlined that as of November 30th, deposits and trading of USDT, DAI, WBTC, WETH, and WAXL will cease on the platform. Withdrawals of these assets will end on December 4th, with any remaining balances converted to USD on December 5th based on market rates. The exchange encouraged users to withdraw any stablecoin holdings before the deadlines.
The suspensions reflect a crackdown on stablecoins by Canadian regulators like the Ontario Securities Commission (OSC). In December, the Canadian Securities Administrators stated that any crypto asset pegged to an external value should be considered a security. This has led platforms to wind down trading and support for these assets to comply with securities laws.
While regulators in the US remain divided on how to classify stablecoins, Canada has taken a firm stance designating them as securities. Earlier this year, oinbase">Coinbase also removed support for stablecoins like USDT and DAI for Canadian users over regulatory guidance. Crypto.com cited direct instructions from the OSC behind its own stablecoin shutdown.
Despite the restrictions, oinbase">Coinbase has praised Canada’s approach for supporting crypto self-custody rights and distinguishing stablecoins from other digital assets. But for now, Kraken’s move reflects a harsh regulatory environment for stablecoins in the country.
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