It was informed through a statement sent to its clients by email. The suspension will be from August 31 at 12:00 p.m. Users residing in Canada will have the ability to trade the tokens until the cut-off date.
Cryptocurrency exchange Coinbase has finally confirmed that USDT, DAI, and RAI trading will cease effective August 31 at 12:00 p.m. The statement was transferred to its clients by email. The news was shared by numerous users on social networks, by way of reporting the news.
Users residing in Canada will have the possibility to trade the tokens until August 31. After that date, trading in the aforementioned cryptocurrencies will be disabled for all Canadian Coinbase customers. However, it will still be possible to withdraw and deposit stablecoins after the deadline to trade those options.
Reasons for Coinbase’s Decision to Suspend USDT, DAI, and RAI Trading for Canadian Users
Although the firm has not elaborated on the reasons for the suspension, the internal statement suggests that it may be related to the new regulations in Canada: “We regularly monitor the assets on our exchange to ensure they meet our listing standards.”
Coinbase was launched in that country just a few days ago. The idea was to provide wire transfer services to Canadian users while seeking to expand into that market. Even changes in the Canadian crypto market in recent months were a reason the company seemed to use to attract customers from that country.
The exchange purported to offer Canadian users a free 30-day Coinbase One membership. Members would be eligible for zero trading fees, enhanced staking rewards, 24/7 priority support, and other perks.
The situation changed in a matter of hours, though, and the exchange wrote the following statement;
“Coinbase Canada, Inc. has filed an application for registration in certain Canadian jurisdictions, but has not yet obtained registration. Until Coinbase Canada, Inc. obtains the registration, it has agreed to abide by the terms of a commitment.”
In February it became known that the Canadian Securities Administrators (CSA) would impose new rules. These regulations would require cryptocurrency trading platforms to sign a series of terms and conditions of operation, in parallel to the fact that their applications are under review. Coinbase was one of the signatories to participate in that process.
Other Exchanges Chose to Withdraw from Canada
At the beginning of 2023 Binance made the determination to withdraw from Canada. The decision was due to new regulatory changes. The company had previously expressed high hopes for the Canadian blockchain industry.
However, the new guidance related to stablecoins and the limitations on investors in cryptocurrency exchanges, made the Canadian market no longer profitable for Binance at that time.
A similar situation was experienced by Bybit, who announced his departure from Canada in May, even though he complied with all the country’s rules and regulations. Although he did not state his reasons, it is known that the new regulation had a decisive influence. Kraken and Crypto.com modified their registry and reduced their listings.
Since the beginning of 2023 the Canadian authorities have been taking measures regarding cryptocurrency regulations. The Ontario Securities and Exchange Commission has published a notice stating that it has strengthened supervision of cryptocurrency trading platforms in the country.
The notice outlines the “investor protection commitments you expect from crypto asset trading platforms (CTPs) operating in Canada.” It specifically refers to the multiple bankruptcies that have taken place in recent times.
By Leonardo Pérez