Cryptocom will remove the list in Canada in Canada due to official pressure

Cryptocom will remove the list in Canada in Canada due to official pressure

On January 9th, Crypto.com announced the delisting of USDT-the most important stable coin in the crypto ecosystem-in Canada to comply with the regulations of the country.

Several users on Reddit and Twitter reported that Crypto.com sent an email to inform Canadian users about the decision.

Reddit

Canadians have to get rid of their USt before January 31

According to the explanation, users have time to lift USDT or exchanged them into another currency by January 31. Otherwise, all USDT credit is automatically converted into circles USDC stable.

The Reddit user Zoomercoomer9000 confirmed that the Canadian supervisory authorities made a statement at the end of December in which they informed that it was registered or in the registration process that it was forbidden to allow Canadian customers to trade cryptocurrencies that are "themselves a securities and/or derivative".

"As a result of this ongoing work, the CSA is of the opinion that stable coins or stable coin agreements can represent securities and/or derivatives. Crypto trading platforms that have been registered or have been received by a preliminary registration is remembered that it is prohibited to allow Canadian customers to trade with crypto funds that themselves and/or a derivat are. “

The community speculates what happened - and why

For many users, the delisting of USDT in Canada was seen as a foretaste of what could happen worldwide if regulatory authorities in other countries decide to attack cryptocurrencies with more complex regulations.

others argued that the reason for delisting was the good relationship from Crypto.com to Circle, the issuer of USDC, and that it was a “business” to switch off the competition. Something like that is very similar, which Binance has done against USDC.

The user Zoomercoomer9000 added that "Tether has a rather shady story" and explained that they had previously lied about their 1-1 bond on the US dollar and did not disclose their connection to Bitfinex until they were uncovered in the Paradise Papers.

In the meantime, other users reported that USDT delisting is "a big problem for Canadians" because it gives them fewer opportunities to earn interest for their money.

While the vast majority were dissatisfied with the measures taken by Crypto.com, other users stated that regulations are the only way for further spreading cryptocurrencies and for large actors to penetrate the ecosystem.

So far, Crypto.com has not made an official statement on this topic, but has confirmed the decision to other media. They also did not clarify whether it is a temporary or permanent ban, so it must be considered effective until further notice.