Cryptocurrency exchange Crypto.com will delist USDT and USDT trading pairs on its app and platform for residents in Canada on Jan. 31 at 06:00 UTC, according to an email shared with the users of the jurisdiction.
crypto dot com to delist USDT pic.twitter.com/3KD0gJlMkE
— chortly (@charlestrussel) January 10, 2023
The firm has urged Canadian users to review their USDT balances, as Crypto.com will suspend all USDT transactions after the above-mentioned date.
Crypto.com has also announced that it will cancel all USDT spot orders and won’t credit any USDT deposited in the crypto.com wallet after January 31. However, any remaining USDT balances would be converted to USDC.
A spokesperson at Crypto.com responded to CryptoSlate’s queries regarding the delisting by stating that the recent move followed instructions from the Ontario Securities Commission under the terms of its registration undertaking for a restricted dealer license.
This comes after the Canadian Securities Administrators (CSA) announced last December that it would strengthen its oversight of crypto trading platforms. A strategic goal of the CSA’s 2022-2025 Business Plan was to study the regulatory implications of stablecoins in the capital markets, including their use to trade crypto assets.
After the fallout of FTX, Crypto.com is under stress as asset outflows from the exchange have increased. Nonetheless, the exchange attempted to ease tensions by partially disclosing its reserves through an audit report by Mazars Group, showing that all customer deposits are backed 1:1 by reserves.
Despite this, community fears remained as there were questions about whether crypto.com was solvent. Later, Mazars deleted the page displaying audit reports from its website.