New Regulations Trigger Changes
Starting August 31, Coinbase has decided to put the brakes on trading Tether (USDT), Dai (DAI), and RAI stablecoins for its Canadian users. If you think it’s just another day in the world of cryptocurrency, think again! Coinbase sent an email to its users on August 17, reminding them of its rigorous asset monitoring practices and the subsequent decision that follows this review.
What This Means for Canadian Users
For all you North of the border crypto enthusiasts, don’t panic just yet. You’ll still be able to deposit and withdraw these stablecoins even after trading in them is suspended. Phew! Coinbase Canada, Inc. is still working on its registration with Canadian authorities, and until that’s sorted, they’re committed to following a legal undertaking. This sounds like the corporate version of “don’t call us, we’ll call you,” but it’s definitely more serious.
Following the Trend
Interestingly, Coinbase isn’t the first exchange to make such a move. Earlier this year, Crypto.com decided to follow suit by delisting USDT for Canadian users. Plus, the Ontario Securities Commission cast a shadow on USDT back in 2021, although the reasons were as clear as mud. They still haven’t explained their rationale behind it—mysteries of the regulatory realm!
Peeking at the Stablecoin Landscape
So, what’s the deal with these stablecoins? Tether (USDT) claims to be backed by fiat reserves, Dai juggles between being a fiat and algorithmic stablecoin, while RAI flies solo as an algorithmic stablecoin that isn’t tied to any asset. It’s like a group project where everything’s a little confusing and no one really knows who’s in charge. Currently, the only stablecoin that’s cleared for action on centralized exchanges in Canada is USD Coin (USDC). Not quite enticing, is it?
Shake-ups in the Canadian Market
Regulatory pressures are shaking up the crypto scene in Canada big time. To add to the list, crypto exchanges like OKX and Binance are also planning to pack their bags and leave due to the revised regulations. It seems like a game of musical chairs, and alas, everyone is scrambling to find a seat. All this change begs the age-old question: when will it all settle down? Keep your eyes peeled and stay informed, because in the world of crypto, just like a cat, you never know when you’ll land on your feet—or face.
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