Global cryptocurrency exchange Crypto.com will delist the Tether-issued stablecoin USDT and all USDT trading pairs on its app and platform for residents in Canada on January 31st. This comes after a restriction by the Ontario Securities Commission (OSC).
Crypto.com Delists USDT
In an email shared with users in the jurisdiction, Crypto.com, the delisting of USDT is in “accordance with instructions from the Ontario Securities Commission (OSC) as part of our pre-registration undertaking for a restricted dealer license.”
Crypto.com adds that after all USDT trading pairs, transactions, deposits, and withdrawals have been delisted on January 31st all remaining USDT user deposits will be automatically converted to Circle-issued USDC.
The move comes after the Canadian Securities Administrators (CSA) announced that it would strengthen its oversight of crypto trading platforms and study the regulatory implications of stablecoins in the capital markets as part of its 2022-2025 Business Plan.
USDT Continues to Struggle
As the second great stablecoin war heats up, Tether’s USDT appears to be falling behind the curve. Since the collapse of FTX, rival stablecoin USDC has been the preferred choice for most crypto users.
According to on-chain data from Glassnode, USDC has been averaging over $12.5 billion more in transfer volume per day than USDT and five times that of USDT since October. The decline in USDT volumes comes amidst criticism of auditing and a less-transparent reserve.
On the Flipside
- Despite its struggles, USDT remains the biggest stablecoin. It has a market cap of $66 billion, $23 billion more than second-placed USDC.
Why You Should Care
Crypto.com’s decision to delist USDT comes as regulators in Canada look to tighten their reins on centralized exchanges in the wake of the collapse of FTX.
Tether’s defense of its reserves is covered in:
Tether Plans to Remove Secured Loans in Reserves by 2023
Read about the stablecoin wars below:
Stablecoin Wars: Why USDC Outperforms USDT