For Canadians, Crypto.com will delist USDT

According to an email sent to users in the region, Crypto.com will delist USDT and USDT trading pairs on its app and platform for residents in Canada on January 31 at 6:00 UTC.

The company has advised Canadian users to check their USDT balances because, after the aforementioned date, Crypto.com will stop processing all USDT transactions.

Crypto.com said that the company did it because the Ontario Securities Commission told it to as part of its registration undertaking for a restricted dealer license. Additionally, Crypto.com has stated that after January 31, it will cancel all USDT spot orders and stop crediting any USDT deposited in the crypto.com wallet.

Any outstanding USDT balances would be converted to USDC, though.

This follows the Canadian Securities Administrator's (CSA) announcement to strengthen its oversight of cryptocurrency trading platforms in December last year.

Studying the regulatory ramifications of stablecoins in the capital markets, including their use to trade crypto assets, was one of the strategic goals of the CSA's 2022–2025 Business Plan. In addition, Crypto.com is under pressure due to the fallout from FTX because the exchange's asset outflows have risen.

However, the exchange tried to defuse the situation by partially disclosing its reserves in a Mazars Group audit report, demonstrating that all customer deposits are backed exactly 1:1 by reserves.