Big Changes for Stablecoin Trading

Starting August 31, Canadian Coinbase users will find themselves unable to trade Tether (USDT), Dai (DAI), and RAI stablecoins. This decision, revealed in an email on August 17, comes just days after the launch of Coinbase’s Canadian subsidiary. It appears the exchange took a good hard look in the mirror and decided a few stablecoins just don’t meet the vibe check.

Why the Sudden Decision?

Coinbase cited its ongoing evaluation process for asset listings. It assures users that they routinely monitor whether the assets on their exchange measure up to their standards. As regulations continue to tighten in the crypto sphere, especially in Canada, the exchange had to rethink its stablecoin offerings in the Great White North.

What Does This Mean for Canadian Users?

Fear not, Canadian friends! While you can’t trade these stablecoins anymore, you can still deposit and withdraw them after the deadline. In their notice, Coinbase mentioned:

“Coinbase Canada, Inc. has filed an application for registration in certain Canadian jurisdictions.”

So, they’re definitely working on getting their paperwork in order, but it’s not quite the Stampede a Canadian stampede is known for – slow and steady wins the race, right?

Following in Others’ Footsteps

Coinbase isn’t the first to dance this dance. Earlier this year, Crypto.com also threw USDT off the roster for its Canadian users. And let’s not forget the Ontario Securities Commission and their mysterious ban of USDT back in 2021. Where’s that plot twist? In crypto, things never stay boring for long.

Regulatory Shifts and Stablecoin Stakes

The Canadian Securities Administrators (CSA) are spicing things up too! Their new requirements state that registered crypto exchanges must sign legally binding undertakings. These include a notable prohibition on clients buying or depositing what they call Value-Referenced Crypto Assets without prior written consent. In simpler terms, it’s like asking permission to head out for snacks; you may really want that late-night snack, but only after Mom checks with Dad… or the CSA.

The Last Stablecoin Standing

Currently, the CSA has tossed their stamp of approval only on USD Coin (USDC) for centralized exchanges. Meanwhile, other exchanges like OKX and Binance are packing it up and peacing out from Canada come September, showing that the Kool-Aid that is Canadian crypto trading might be on a serious decline.