Following directives from the Ontario Securities Commission (OSC), Crypto.com has announced its plans to delist USDT from its platform for all users in Canada. The January 31st deadline was made public to Crypto.com users in Ontario, sparking wide FUD on the fate of the world’s largest stablecoin.
Crypto.com further added that the decision is in line with its operational license agreement in the North American country and part of a long-term commitment to fully comply with local laws in all its country of operation.
In many countries like Canada, where plans for CBDCs are in the works, stablecoins have continued to pose a threat with tighter scrutiny measures rolled out for their use within the territory. The OSC believes stablecoins strongly bear the features of a ‘security.’
Within the crypto community also, USDT has continued to come under intense fire, with many raising eyebrows about possible violations in its mode of operation. Last year the company received a $41 million US fine for falsely stating its asset as 1:1 backed. The CEO of Binance and owner of the third-biggest stablecoin has repeatedly taken a swipe at the market leader.
A fall for USDT, many believe, will be the extinction of crypto as we know it today.
The ‘fortune favours the brave’ exchange further allayed any fears of fund losses, assuring investors that all remaining balances will be converted to USDC, an alternative stablecoin by Circle. According to its report, staked assets and assets locked up in medium-to-long-term yields will not be affected.
USDC currently ranks second on the stablecoin table with a market capitalization of only $23 billion, shy of USDT’s $66 billion market cap.
Having faced several issues with its advertising and compliance strategies in the US, Crypto.com is towing the path of caution to avoid all possible regulatory complications in the neighbouring Canadian market. The Singapore-based exchange has continued to assure users of its healthy balance sheet and continuity of operations despite the fall of FTX.
Close to $10 million of its investments were sunk the FTX drain, added to over 100 staff were laid off within the last six months, but the company’s CEO is confident of a continued healthy operation amidst one of crypto’s most brutal bear run – even if it means delisting USDT.