Crypto.com made an alarming announcement for users of stablecoin Tether ($USDT). The extremely popular cryptocurrency, which promises to hold the price of $1, will be delisted by the exchange and inaccessible for Canadian citizens. Beginning February first, Crypto.com’s users from the Great White North will no longer be able to buy, sell, nor trade USDT coins.
The popular crypto-exchange sent an email to users on January 10th of the upcoming changes:
“This email is to inform you that Tether (USDT) will no longer be supported in the Crypto.com App. On January 31, 2023 at 01:00 EST, USDT will be delisted and all USDT transactions will be suspended,” reads the first two sentences of the digital letter.
How to avoid penalties for withdrawing USDT?
Users who don’t wish to be impacted must withdraw or convert their USDT tokens to another cryptocurrency before the end of the month.
Canadian citizens who do not withdraw, convert, or send their $USDT to another wallet will possibly be penalized for trying to withdraw the ‘soon delisted’ token post deadline.
This move comes after another top exchange, Coinbase, already pushed its customers to leave Tether ($USDT) for USD Coin ($USDC).
While the cryptocurrency is still holding its value at US$1.00, the continued FUD could prove to be a challenge to its dominance on the stablecoin market. It has a market cap of a massive $66-billion, which won’t be dissolved easily.
Why did Crypto.com de-list Tether [$USDT] ?
Crypto.com elaborated on the situation in the email, giving users a reason for the sudden delisting.
“In accordance with instructions from the Ontario Securities Commission (OSC) as part of our pre-registration undertaking for a restricted dealer license,” continued
Crypto.com is not halting the trade of $USDT by users from other countries. The individual target is an action being taken due to new regulatory actions on cryptos being taken by the Canada Securities Administration [CSA].
It’s recommended by all crypto-analysts that Canadian users of Crypto.com follow the instructions of the exchange; Trading off $USDT for another coin or simply cashing out, could save users from unnecessary losses.
For now at least, the dreaded notion of a USDT crash in 2022 has been averted. The FTX contagion did not stop the stablecoin from continuing operations. And it succeeded in providing funds for all withdrawals made during one of the most “FUD” heavy eras any cryptocurrency has ever seen.
