Popular CryptoCom exchange suspended its support for the USDT stablecoin.
USDT is a popular stablecoin and stands at the first rank in the crypto sector, in terms of marketcap. Tether is the back-end company behind this stablecoin, which promises to maintain the value of each USDT equal to $1. Tether is a subsidiary of Bitfinex Crypto exchange.
Recently Crypto.com exchange informed all the customers through the mail that the company decided to suspend its support for the USDT stablecoin due to regulatory pressure in Canada.
As per the report, Canadian Crypto customers can withdraw their USDT from the exchange before 31 Jan 2023 and if any customers fail to withdraw their USDT balance then the exchange will convert them into another stablecoin USDC.
A Canadian CryptoCom user shared a screenshot of the CryptoCom’s USDT delist email:
Reports noted that in Dec 2022, Canadian regulators warned all the Crypto-related services providers to stop trading of those digital assets, which belong to the nature of security and/or derivative class.
Few people claimed that CryptoCom suspended support for USDT because of its better relationship with Circle, which manages USDC stablecoin.
A similar kind of decision was taken by Binance exchange, which converted all of the stablecoins from its platform into USDT & BUSD stablecoins. In the case of Binance, there was nothing like regulatory pressure, instead, the exchange stated that a decision has been taken to increase the better experience for Binance users.
USDT vs USDC
USDT is the first stablecoin concept in Crypto market, so it is the dominant stablecoin. On the other hand, USDC is a second-ranked stablecoin by market cap.
After the collapse of TerraUSD (USDC) stablecoin in May 2022, Tether faced significant sell-off pressure on the other hand USDC grabbed significant user inflow, as USDC was confident with its reserved funds over all the other stablecoins.
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