Coinbase announced it will stop allowing trading of three major stablecoins – Tether (USDT), RAI, and DAI – for its users in Canada. This starts on August 31st. Coinbase made this decision shortly after fully launching in Canada and offering support for the top stablecoin, Tether (USDT).
According to an email to customers, Coinbase said these three assets do not meet their listing standards anymore based on recent reviews. But users can still deposit and withdraw the stablecoins after trading stops.
Coinbase’s move is similar to Crypto.com, which stopped Canadian USDT services in January due to instructions from regulators. Last December, Canadian regulators said major stablecoins like USDT are securities. They said crypto exchanges cannot let Canadians trade assets that are securities. It seems Coinbase is responding to similar regulatory pressure by removing USDT support. However, its own stablecoin USDC will still be tradable in Canada.
Stablecoins are pegged to real assets like the US dollar to maintain a steady value. They are important for crypto markets and decentralized finance (DeFi). Tether (USDT) is the largest stablecoin but has faced questions about its dollar reserves and audits.
Earlier this week, Coinbase highlighted its full launch in Canada after previously offering limited trading. This followed a “regulation by engagement” approach, not “regulation by enforcement.”
Meanwhile, top exchange Binance stopped Canadian operations in June due to unclear stablecoin guidance. Coinbase’s move signals regulators may be cracking down more on tokenized dollars.
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