US-based cryptocurrency exchange Coinbase has made the decision to suspend trading of popular stablecoins Tether (USDT), Dai (DAI), and RAI Reflex Index (RAI) for its Canadian users starting from the end of this month. This move is reportedly in response to regulatory changes in Canada.
Coinbase informed its users through an email that the suspension of trading for USDT, DAI, and RAI is a result of their continuous assessment of listed assets to ensure they meet the platform’s rigorous listing standards. The exchange specified that the trading suspension for RAI, DAI, and USDT in Canada will take effect on August 31, 2023, around 12 PM ET.
However, Coinbase clarified that while trading of these stablecoins will be suspended, users will still be able to deposit and withdraw them. This means that customers can manage their holdings and perform transactions involving these stablecoins even after the trading suspension takes place.
This development follows closely after Coinbase’s expansion of services in the Canadian market. The exchange recently entered the Canadian market in partnership with Peoples Trust Company. As part of its expansion strategy, Coinbase extended its Coinbase One membership offering to Canadian users.
Coinbase isn’t the only cryptocurrency exchange taking action regarding stablecoins in Canada. In January, Crypto.com announced its decision to delist Tether’s stablecoin (USDT) for Canadian users. The exchange gave users the option to either withdraw their USDT assets or convert them to other tokens before the end of January.
These moves by cryptocurrency exchanges highlight the impact of evolving regulations on the digital asset landscape in various regions and how platforms are adjusting their offerings to comply with local rules and requirements.