Coinbase to temporarily suspend USDT trading, stricter regulations for stablecoins in Canada?

According to a report from CoinDesk, Coinbase, which recently entered the Canadian market, will suspend stablecoin trading for Canadian users in USDT, DAI, and RAI by the end of this month.

Coinbase Suspends Trading of USDT, DAI, and RAI Stablecoins

CoinDesk obtained an email sent to its Canadian customers, explaining that Coinbase regularly monitors the assets on its exchange to ensure they meet listing standards. According to the latest review, Coinbase will temporarily halt trading of RAI Reflex Index RAI, Dai DAI, and Tether USDT for Canadian users around 12 p.m. Eastern Time on August 31. However, customers will still be able to deposit and withdraw the affected stablecoins.

Crypto.com Previously Delisted USDT

After Canada imposed strict regulatory rules on the crypto industry in February this year, many major cryptocurrency exchanges have chosen to exit the Canadian market, including Binance, Bybit, and OKX. However, for Coinbase, clear industry regulations in Canada seem to be more favorable compared to the less visible regulatory landscape in the United States.

Another exchange that opted to stay in Canada, Crypto.com, had already delisted USDT in Canada back in January. At that time, Crypto.com stated:

The company made this decision in accordance with the Ontario Securities Commission's (OSC) directive as part of our commitment to pre-registering as a restricted dealer.

At that time, Crypto.com chose to convert any remaining USDT user deposits on the exchange to USDC issued by Circle after the deadline.

This raises the question: What clear and stringent regulations will Canada impose on stablecoin issuers in the future, in a country known for having the strictest regulations?