Crypto.com delists USDT for Canadian users following OSC ban

According to user reports on Jan 10, cryptocurrency exchange Crypto.com plans to delist Tether (USDT) for Canadian users effective Jan 31, 2023. According to the firm, if users do not withdraw or convert their USDT assets by the deadline, then their Tether will be automatically converted into USD Coin (USDC). 

“You may incur a retrieval fee if deposits of USDT are made from external wallets after this suspension period, and fund retrieval may not be possible in some cases.”

In August 2022, Crypto.com announced that the Ontario Securities Commission had accepted the firm’s pre-registration undertaking for operations in Canada. As part of regulatory requirements, cryptocurrency exchanges operating in the Canadian province of Ontario are prohibited from listing digital assets banned by the OSC, which includes USDT. Similarly, Coinsquare, a cryptocurrency exchange regulated by the Investment Industry Regulatory Organization of Canada (IIROC), currently does not list USDT as one of its available trading assets. 

crypto dot com to delist USDT pic.twitter.com/3KD0gJlMkE

— chortly (@charlestrussel) January 10, 2023

In issuing its decision, the OSC never explained the rationale behind its Tether ban. However, a document unsealed on Feb 17, 2021, stated that “the only U.S. dollars held by Tether ostensibly backing the approximately 442 million tethers in circulation was the approximately $61 million on deposit at the Bank of Montreal.” until Sept 15, 2017. Meanwhile, experts have, from time to time, questioned the authenticity of Tether’s reserves and its audits. 

Currently, all prospective cryptocurrency exchanges must register with the IIROC if they want to operate in Canada. Exchanges such as Binance, Bybit, and Huobi, have faced issues with the OSC in the past regarding their regulatory status.