Coinbase Halts USDT Trading for Canadian Users Starting August 31
In an email dated August 17, Coinbase, a cryptocurrency exchange, revealed its decision to halt trading of Tether USDT, Dai DAI, and RAI stablecoins for Canadian users starting August 31.
This surprising development comes shortly after Coinbase's recent announcement of its complete expansion into the Canadian market, including trading the largest stablecoin globally, Tether.
The exchange had officially launched its Canadian subsidiary a few days earlier, unveiling the full range of its services to Canadian users, including support for Canada's instant electronic payments system, a move beyond its previous limited trading offerings.
Nana Murugesan, Coinbase's VP of International Business Development, shared that Canada's approach is more accommodating than the United States, as it employs a "regulation by engagement" strategy rather than "regulation by enforcement."
However, in a recent email to customers on Thursday, Coinbase announced that Tether (USDT), RAI, and DAI no longer meet the company's listing standards based on their latest reviews.
These cryptocurrencies will be suspended from trading on August 31 at 12 pm ET. However, Canadian users can still deposit and withdraw these stablecoins after the suspension.
"Following the trading suspension, customers will still have access to RAI, DAI, or USDT wallets for deposit and withdrawal functionality," confirmed Coinbase via email.
Although Coinbase did not provide a specific reason for suspending USDT, DAI and RAI, it mirrors the move made by crypto exchange Crypto.com in January. The exchange had dropped support for Canadian USDT in response to the Ontario Securities Commission's (OSC) directives.
A month earlier, the Canadian Securities Administrators (CSA) clarified that
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