Coinbase is making changes for its Canadian users when it comes to Tether (USDT), DAI, and RAI. Starting from August 31, these stablecoins will no longer be available for trading on Coinbase if you’re in Canada.
According to what Coinbase has shared, Canadians won’t be able to trade these stablecoins starting from September 1. This decision came after a recent review. But don’t worry, even after this date, Canadian users can still deposit and withdraw these stablecoins.
The reason behind this move is that Coinbase Canada, Inc. is working to get officially registered in certain parts of Canada. While they’re going through this registration process, they’ve decided to follow some rules and guidelines.
This situation is somewhat similar to what Crypto.com did earlier this year. They also stopped USDT trading for their Canadian users. Back in 2021, the Ontario Securities Commission decided to ban USDT trading. But the exact reasons behind that decision haven’t been made public.
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Looking at the bigger picture, there’s been more attention on stablecoins from regulators in Canada. On February 22, the Canadian Securities Administrators (CSA) made it a rule for registered crypto exchanges or those in the process of getting registered to make legal agreements.
One important thing in these agreements is that clients won’t be allowed to buy or put specific stablecoins in their accounts without getting approval in writing from the CSA.
Out of the stablecoins we mentioned earlier, USDT is backed by real money, DAI works as a mix between real money and a computer-based stablecoin, and RAI is backed by ETH but not tied to any specific thing. Right now, the CSA only approves USD Coin (USDC) to be listed on regular crypto exchanges.
Because of stricter rules in Canada, OKX, a crypto exchange, decided to leave the Canadian market in June. Binance, another big exchange, is also planning to leave Canada by September.
The fact that Coinbase is stopping stablecoin trading is pretty important, especially since they recently entered the Canadian market not long after Binance left. On August 14, Coinbase told everyone that they’re expanding to Canada. They’re teaming up with Peoples Trust Company to make it easier for Canadians to use their dollars to do transactions on Coinbase.
As the whole world of cryptocurrencies deals with more and more rules from governments, people who use the markets will be watching closely to see how these changes affect trading, investments, and how many people start using cryptocurrencies.