Crypto.com, a crypto wallet provider and exchange, has delisted Tether (the leading stablecoin) on its platform in Canada. The company recently sent an email to consumers living in Canada and notified them that it will not support the prominent stablecoin from the 31st of January onward. The company mentioned that the respective date will see Crypto.com delisting Tether (USDT) token.
Crypto.com Declares to Delist Tether
Subsequently, the transactions in Tether will be suspended by the platform. Thus, the firm advised the consumers to take measures to review their USDT balance as well as the further required moves (such as conversion or the withdrawal of the USDT tokens). The Canadian clients had time until the 31st of the previous month to do whatever they intend to do with their USDT holdings on Crypto.com.
The crypto exchange also disclosed that the platform will not support any deposits, withdrawals, or trading done through the USDT tokens after the specified date. The company will even not credit any deposits in the USDT tokens following this month. The entirety of the balances in the USDT will then be transformed into another stablecoin USDC, according to the firm.
A spokesperson of Crypto.com brought to the front that this move is being taken by the crypto exchange because it has a lot of regulatory pressure. The spokesperson added that the platform is attempting to ensure that it effectively complies with the native regulatory obligations in Canada. In the words of the spokesperson, the Ontario Securities Commission (OSC) of Canada ordered the crypto exchange.
As the spokesperson put it, this step is included in the pre-registration undertaking of the crypto exchange for the acquisition of a limited dealer license. In December 2022, the Canadian Securities Administrators (CSA) enhanced the regulatory oversight over the stablecoins and the crypto assets. The CSA keeps on administering as well as examining the presence as well as the part played by stablecoins in the capital markets of the country.
The spokesperson pointed out that the present scenario of the crypto industry has established the perspective of the CSA of Canada. The regulatory body considers that stablecoin arrangements and stablecoins themselves may comprise derivatives and/or securities. At present, it is not clear if any of the other crypto exchanges operating in Canada have any intentions to follow in the footsteps of Crypto.com.
Tether Leads the Stablecoin Space
In addition to this, the crypto exchange platform allured a lot of attention in the latter period of 2022. This was because the crypto exchange was facing a controversy that the reserves of Crypto.com were possibly being supported by illiquid tokens majorly. On this, the community raised a lot of concerns.
Currently, Tether is considered to be the biggest stablecoin across the globe. The token has up to 66.3 billion amount in its circulating supply.
As per the data offered by CoinGecko, USDT has a market share of up to 48%. After a shrink of up to 21.6% in the supply of the token between May and November of the previous year, it has begun to rise rapidly.
USDC (the stablecoin placed at the 2nd spot) has a 32% share of the total market and contains nearly 43.7 billion worth in its circulating supply. It additionally had a reduction of almost 22% in the respective supply in 2022.