Did Crypto.com Restrict Tether From Canadian Users?

Rumors have been circulating that Singapore-based crypto exchange Crypto.com has delisted Tether (USDT), including all trading pairs with the firm’s stablecoin. The move is said to be effective starting January 31, 2023.

“Please take urgent action to review your USDT balance and take any necessary action (e.g. withdrawal or conversion) before the effective date,” the company reportedly said in an email to its customers, as shared on Reddit.

As of this writing, only Crypto.com users in Canada have reportedly seen the advisory.

This follows after the Canadian Securities Administrators (CSA) provided an update last December on “strengthening its approach to oversight of crypto trading platforms.” Outlined in its 2022-2025 Business Plan, the agency included a strategic goal to “explore regulatory implications of stablecoins in the capital markets including their use in connection with crypto asset trading.”

“The CSA is of the view that stablecoins, or stablecoin arrangements, may constitute securities and/or derivatives,” the agency said in its statement. “Crypto trading platforms that are registered or that have entered into a pre-registration undertaking are reminded that they are prohibited from permitting Canadian clients to trade, or obtain exposure to, any crypto asset that is itself a security and/or a derivative.”

The crypto exchange recently published its “audited” proof of reserves through audit firm Mazars Group, essentially showcasing that all customer deposits are backed 1:1 with reserves. Ironically, USDT has the highest reserve ratio in said results.

The audit firm is the same agency that did fellow crypto exchange Binance’s “proof of reserves audit,” which yielded the same result. However, Mazars seems to have deleted the page from its website that displayed the results.

Binance also announced that Mazars has paused all work for crypto clients.

“Mazars has indicated that they will temporarily pause their work with all of their crypto clients globally, which include Crypto.com, KuCoin, and Binance. Unfortunately, this means that we will not be able to work with Mazars for the moment,” a Binance spokesperson said.

Crypto.com is under increasing pressure following the fallout of crypto exchange FTX and the subsequent legal battle its founder Sam Bankman-Fried is facing on an alleged fraudulent scheme.

Information for this briefing was found via Reddit and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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