Renowned crypto exchange Coinbase has announced its decision to suspend the trading of Tether’s stablecoin, USDT, as well as the DAI and RAI tokens in Canada by the end of August.
This decision comes only a few days after the exchange announced an expansion of services within the country.
Coinbase Upholding Regulatory Standards
In the statement released by Coinbase, the company emphasized the importance of upholding its listing standards. “We regularly monitor the assets on our exchange to ensure they meet our listing standards,” the company stated in an email.
“Based on our most recent reviews, Coinbase will suspend trading in Canada for RAI Reflex Index (RAI), Dai (DAI), and Tether (USDT) on August 31.”
It’s worth noting that while the suspension will prohibit trading of RAI, DAI, and USDT on the Coinbase platform in Canada, it will not hinder customers’ ability to access their holdings in these tokens.
Users will still have access to their digital assets, and manage them as they see fit. This approach demonstrates Coinbase’s commitment to ensuring that its users’ interests remain a top priority, even in situations where trading activity is restricted.
USDT Price Remains Stable
Surprisingly, the announcement of the suspension did not seem to significantly impact the prices of the three tokens. This muted response could reflect the evolving maturity of the crypto market, where investors and traders are becoming more accustomed to news-driven price fluctuations.
Canada’s Regulatory Landscape
The regulatory landscape in Canada has witnessed significant changes in recent times. Last year, the country introduced tighter regulations aimed at governing cryptocurrency exchanges. These measures have created pressure on exchanges and stablecoins operating within Canada.
Notably, one of Coinbase’s competitors, Binance, chose to exit the Canadian market in May due to these regulatory shifts. Similarly, Crypto.com anticipated the impact of stricter rules and chose to delist USDT from its platform back in January.
The decision to suspend trading of certain tokens underscores Coinbase’s dedication to adapting to regulatory changes and prioritizing user protection. Canadian authorities have demonstrated a forward-thinking stance in regulating the crypto space, which Coinbase acknowledges and supports.