Crypto.com Drops Tether in Response to Ontario Regulator
Crypto.com, a cryptocurrency exchange, has announced that it will no longer allow transactions involving Tether for customers in Canada and will delist the stablecoin from its platform in the region.
A spokesperson for the exchange stated in an email that the decision to stop facilitating transactions involving Tether in Canada and delist it was made "in accordance with instructions from the Ontario Securities Commission (OSC) as part of their pre-registration undertaking for a restricted dealer license."
Crypto.com announced in August that it had been accepted by the OSC for its preregistration undertaking to operate in Canada. Under OSC regulations, cryptocurrency exchanges in Ontario are not allowed to list digital assets that have been banned by OSC, including USDT, because of the OSC's regulatory requirements.
Why OSC Banned Tether?
The OSC did not explain its decision. However, a document made public on February 17, 2021, revealed that the only USD held by Tether to back the 442 million Tethers in circulation was the $61 million on deposit at the Bank of Montreal. Concerns have also been raised about Tether's reserves and its audits by industry experts.
The collapse of FTX and increasing competition among stablecoins have led regulators to increase scrutiny of centralized exchanges, which has led Crypto.com to delist Tether. Earlier this month, the Canadian Securities Administrators announced plans to strengthen oversight of crypto exchanges operating in the country and said it was closely monitoring the use of stablecoins in the country.
CBW - External Analyst