Crypto exchange Crypto.com will remove USDT trading pairs from its app and platform for Canadian residents on January 31, according to an email shared with users in the jurisdiction.
crypto dot com to delete USDT pic.twitter.com/3KD0gJlMkE
– chortly (charlestrussel) January 10, 2023
The company urged Canadian users to check their USDT balances because Crypto.com will suspend all USDT transactions after the aforementioned date.
Crypto.com also announced that it will be canceling all USDT spot orders and will not deposit any USDT deposited into a crypto.com wallet after January 31st. However, all remaining USDT balances will be converted to USDC.
A Crypto.com spokesperson responded to questions about the deletion, noting that the latest change followed instructions from the Ontario Securities and Exchange Commission under the terms of the registration obligation for a restricted dealer license.
This comes after the Canadian Securities Administrators (CSA) announced last December that they would strengthen their oversight of cryptocurrency trading platforms. The strategic objective of the CSA’s 2022-2025 Business Plan was to examine the regulatory implications of stablecoins in the capital markets, including their use for trading crypto assets.
After the FTX fallout, Crypto.com has come under pressure with increased asset outflows from the exchange. However, the exchange attempted to ease tensions by partially disclosing its reserves via a Mazars Group audit report showing that all customer deposits are guaranteed 1:1 by reserves.
Despite this, the community’s concerns remained, as there were doubts whether crypto.com would be able to solve the problems. Later, Mazars deleted the page showing audit reports of its site.
With info from CryptoSlate