Canadian Crypto Exchanges Banned from Trading Tether

Last month Coinberry turned the primary “pure-play registered crypto buying and selling platform” in Canada.

At that point, Coinberry CEO Andrei Poliakov commented:

“Canadians have been looking for a secure, reliable, and controlled platform to accumulate crypto belongings for a lot too lengthy. We are lastly thrilled to supply them one.”

Regulation is sweet for digital asset marketplaces as the extra scrutiny creates confidence for the customers of the platform. Coinberry will most definitely promote the very fact it should adjust to the regulation.

But buried with the approval was the attention-grabbing indisputable fact that Tether (USDT), a US greenback stablecoin, is banned from the platform. While Bitcoin, Bitcoin Cash, Ether, and Litecoin may be traded, Tether was acknowledged on the “prohibited crypto belongings listing.”

In June of 2021, WealthSimple Digital Assets, one other Canadian platform, obtained the identical restrictions that Coinberry was awarded.

Tether is probably the most lively stablecoin within the digital belongings ecosystem with a market cap of over $66 billion. The dollar-based stablecoin streamlines buying and selling of digital belongings permitting traders the flexibility to shortly exit a commerce and to park worth in one thing that mirrors the worth of the greenback (or one other secure asset). But Tether has been the goal of a regulatory investigation by the New York Attorney General concerning the digital asset.

Fitch lately cautioned on stablecoins that held solely fractional reserves in precise {dollars} as some issuers maintain industrial paper, authorities securities, and maybe different belongings.

In July, it was reported that Tether will be the goal of a felony investigation by the US Department of Justice.

All the whereas, the regulatory drums have grown louder as public officers within the US subject statements in regards to the want for better regulatory oversight of stablecoins usually.

The Ontario Securities Commission defined within the approval submitting of Wealthsimple:

“To foster innovation and reply to novel circumstances, the CSA [Canadian Securities Administrators) has considered an interim, time-limited registration framework that would allow crypto asset platforms to operate within a regulated environment, with regulatory requirements tailored to the crypto asset platform’s operations. The overall goal of the regulatory framework is to ensure there is a balance between the need to be flexible and facilitate innovation in the Canadian capital markets, while upholding the regulatory mandate of promoting investor protection and fair and efficient capital markets.”

This inclination to support innovation is very important and commendable, but it may be a precursor to further scrutiny in the stablecoin space as well as potential enforcement actions. In July, ARCA CIO Jeff Dorman stated: 

“… Tether is the biggest (and only) systemic risk to the digital assets ecosystem” cautioning that it could lose its peg on the dollar and cause a “run on the bank.”

 

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About the Author: Daniel