The Ontario securities regulator has halted some cryptocurrency exchanges from trading Tether’s USDT stablecoin.
Ontario Securities Commission blocks some exchanges from trading Tether
The Ontario Securities Commission has stopped Wealthsimple and Coinberry from trading USDT stablecoin on their platforms. The cryptocurrency exchanges are some of the first to gain regulatory approval in Canada, but it is limiting their access to some cryptocurrencies.
According to the latest reports, the approvals limit these cryptocurrency exchanges to only a few approved cryptocurrencies, including bitcoin, ether, bitcoin cash and litecoin. USDT is one of the cryptos prohibited by the Ontario Securities Commission.
The approval documents said, “The Filer will not trade Crypto Contracts based on crypto assets, digital or virtual currencies, and digital or virtual tokens listed in Appendix C to this Decision.” At the moment, the documents didn’t reveal the reasons behind the barring the trading of Tether.
Regulators are not comfortable with Tether’s status
Christine Duhaime, a Canadian lawyer, stated that regulators are not very comfortable with Tether due to its history. He said, “with respect to Tether and Bitfinex, the report by the New York AG likely did not provide comfort to the securities regulators and, in the eyes of a government regulator, is likely going to be viewed as high-risk.”
Tether has been one of the most controversial crypto projects in history. However, the project has been releasing audit reports in recent months and still remains the leading stablecoin issuer in the crypto space.