Since January 10, so many reports have been floating throughout social media, especially in the Canadian crypto sector about Crypto.com’s upcoming moves.
The reports suggest that the exchange may have to delist the largest stablecoin in the entire crypto-verse (Tether – USDT).
The most alarming detail of the update is that the delisting is going to happen for Canadian users only. It is a major setback for the entire Canadian crypto community using the USDT stablecoin.
Crypto.com has made the Announcement
As the reports started to float, many wanted to know if that is indeed the case. Turns out, the cryptocurrency exchange addressed the matter on January 10 and it has confirmed the delisting.
As per the Crypto.com officials, they are going to delist the largest stablecoin for users based in Canada. They have decided that the token will be delisted on January 31.
After that, the exchange will be completely cut off with the particular stablecoin.
What will happen to the USDT?
The exchange has communicated what is going to happen to the USDT in case the users do not exchange or withdraw them before January 31.
First of all, the exchange has asked the investors not to worry about their assets getting dissolved at all. If they do not withdraw or exchange the USDT in their possession, they will be swapped with the USD Coin (USDC).
The USDC is the second-largest stablecoin in the entire crypto market that is gradually overtaking the market status of the USDT.
In the past couple of years, more investors and cryptocurrency users are finding it easier to entrust their funds with USDC instead of USDT.
This is because the USDC has proven that it is fully backed by the collaterals that are saved in the form of multiple assets in banks and with other financial firms.
August Announcement by Crypto.com
It was back in August when Crypto.com made an announcement pertaining to filing a request for registration at the Ontario Securities Commission (OSC).
The exchange confirmed that the OSC had approved their request for registration. This meant that the exchange had a regulated status in Canada but it also meant it had to abide by all the rules and requirements.
The OSC has recently announced that USDT is prohibited in Canada so it cannot be offered to the locals in the country. Being regulated, the exchange has to abide by the regulations and make the necessary decisions.
The reason why the OSC does not allow the usage of the USDT in the country is that it is not fully backed by physical funds.
The OSC is among the strictest regulators and as USDT is not fully backed, it does not want its locals to interact with the stablecoin.