Coinbase Suspends Trading of Select Stablecoins in Canada Following Regulatory Directives

Coinbase, a notable cryptocurrency exchange, has announced that starting September 2023, it will halt the trading of USDT, DAI, and RAI stablecoins for its Canadian clientele. This comes shortly after the platform’s launch in Canada on Aug. 17. Against the backdrop, Coinbase highlighted that it regularly reviews its asset listings to ensure they align with established criteria.

Despite this trading halt, Canadians can still deposit and withdraw these stablecoins until September. Coinbase clarified its ongoing status by mentioning that its subsidiary, Coinbase Canada, Inc., is in the midst of registering across different provinces in Canada. The company emphasizes its commitment to fulfilling the terms of a current agreement until the final registration is accomplished.

Another platform, Crypto.com, has likewise ceased USDT trading for its Canadian audience, likely influenced by the 2021 ban on USDT by the Ontario Securities Commission, although the exact motive hasn’t been revealed.

Earlier this year, on Feb. 22, the Canadian Securities Administrators (CSA) issued a directive demanding all cryptocurrency exchanges, whether fully registered or in the process, to make legally binding promises with the regulatory authority. Importantly, one of the key directives explicitly prohibits Crypto asset trading platforms (CTPs) from allowing their customers to buy or deposit stablecoins through crypto contracts unless they’ve been granted written permission by the CSA.

Notably, USDT is pegged to the USD at a 1:1 ratio. Meanwhile, DAI integrates components from both fiat-based and algorithmic stablecoins, and RAI operates solely on an algorithmic foundation, not tied to any specific asset. As of now, USDC stands as the only stablecoin endorsed by CSA for trade on centralized crypto exchanges.

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