Crypto.com recently sent an email to customers in Canada informing them that as of January 31st, Tether will no longer be supported.
The company said it will delist USDT on that date and suspend all USDT trading.
“Please urgently check your USDT balance and take necessary actions (withdrawals, exchanges, etc.) before the effective date,” it warned.
No tether for Canadians
Crypto.com added that the exchange will no longer support Tether trading, deposits, and withdrawals from that date and will no longer accept USDT deposits after January.
All remaining USDT balances will be automatically converted to USDC, he added. The move is to comply with local regulations, the spokesperson said.
“Crypto.com has delisted USDT for Canadian users as part of its restricted dealer license pre-registration business, as directed by the Ontario Securities Commission (OSC).”
December, Canadian Securities Administrator (CSA) enhanced Regulatory oversight of cryptocurrencies and stablecoins. The CSA said it continues to monitor and evaluate the presence and role of stablecoins in Canada’s capital markets.
“As a result of this ongoing work, the CSA believes that stablecoins or stablecoin arrangements may constitute securities and/or derivatives.”
Whether other major Canadian exchanges will follow suit remains to be seen.
Additionally, Crypto.com announced late last year that its reserves were Heavily backed by illiquid tokens.
Prospects for the Stablecoin Ecosystem
Tether is the world’s largest stablecoin with a circulating supply of 66.3 billion USDT. As a result, this gives us a market share of 48%. coin gecko.
After a 21.6% contraction in supply from May to November 2022, Tether supply started to increase slightly.
Circle in second place has a 32% market share at 43.7 billion. USDC Currently in circulation. And in 2022, the supply will drop by 22%.
Binance USD is the third largest stablecoin at $16.4 billion. BUSD It is in circulation and has a market share of 12%.
Additionally, all stablecoins have a market cap of $137 billion, accounting for 15.4% of the total cryptocurrency market cap.
BeInCrypto has reached out to the companies or individuals involved in the story to obtain an official statement regarding the recent developments, but has yet to hear back.