Coinbase, the behemoth cryptocurrency exchange which recently broadened its horizons to commence its operations in Canada, has dropped a bombshell announcement. It will suspend trading for three popular stablecoins, Tether (USDT), Dai (DAI) and Rai Reflex Index (RAI), a decision which will ring effective from August 31. Importantly, this implies only a halt on trading and not customer access to these wallets. These wallets will remain functional for deposits and withdrawals post the trade suspension, as per Coinbase‘s recent missive to its users.
In a world where regulatory clarity oscillates between hazy and nonexistent, Canadian regulators have adopted a sterner stance against crypto service providers. The Ontario Securities Commission has a track record for its unswerving toughness, having dealt blows to prominent exchanges such as Poloniex, KuCoin, OKEx, and Bybit due to their lack of licensing operations within the stipulated deadline.
Further driving the nail into Tether’s coffin, Canada has enforced a ban on Tether, a stablecoin controversial for allegedly dabbling in market manipulation and printing billions without checks. After this embargo, the token found itself categorised under “Prohibited Crypto Assets.” However, brewing curiosity remains as the specifics behind the block remain undisclosed.
In contrast, stablecoin USD Coin (USDC) has received a green light from the Canadian Securities Administrators (CSA). The only stablecoin enjoying regulatory approval, it stands proudly listed on Canadian exchanges.
On the flip side one can’t ignore the impact that tough regulations are having on crypto landscape in Canada. Many crypto exchanges, in the face of these regulations, have elected to withdraw their services from Canada. Notable among these includes the global leader Binance, all set to exit the Canadian market by September, shortly after OKEx made similar moves in June.
While this stringent regulatory environment may appear hyper-cautious and has led to the exit of major exchanges, one cannot deny the essential role of regulations to maintain integrity. The challenge now is to preserve the fine balance between encouraging innovation and avoiding potential losses for investors.
With Coinbase demonstrating its unwavering commitment to Canada as a “Go Deep market,” even in the turbulent regulatory climate, the chessboard is set for an intriguing game. How this will impact the stablecoins and the Canadian crypto market remains to be observed.
Source: Cryptonews
