According to user reports, Crypto.com wanted to delist USDT (Tether) for Canadian customers as of the 10th January. This was according to social media posts. These reports were sourced from customers of the cryptocurrency exchange.
Customers of the exchange were advised that if they miss withdrawing or converting USDT assets before the deadline, and instead allow the exchange to do it for them their Tether will automatically convert into USD Coin (USDC).
Crypto.com announced that in August, the Ontario Securities Commission gave the company permission to proceed with its pre-registration undertaking. This will allow the company to conduct business in Canada.
It is against the regulatory framework for cryptocurrency trading in Ontario. This is because Ontario is part Canada. This includes the USDT.
Coinsquare, a cryptocurrency exchange, is governed by Canada’s Investment Industry Regulatory Organization (IIROC). At this time USDT cannot be traded on the platform. Similar to the previous scenario.
The OSC never provided any explanation for its decision to restrict tethering when it was time to issue its ruling.
According to a document published on February 17, 2021 it was revealed that Tether owned only $61 million in US dollars. These funds were used to support approximately 442,000,000 tethers. There have been instances when industry professionals have doubted the authenticity of Tether’s reserve holdings.
Any potential cryptocurrency exchange that plans to do business in Canada must register with the Investment Industry Regulatory Organization of Canada.
The Ontario Securities Commission (OSC), has in the past questioned the regulatory status a number cryptocurrency exchanges such as Binance, Bybit and Huobi. This has caused a lot of disputes between the parties.