Cryptocurrency exchange Kraken has officially declared its intention to halt all trading, deposits, and withdrawals for Tether USD (USDT), Wrapped Bitcoin (WBTC), and other reserve-backed assets in Canada.
“We will soon be suspending deposits, withdrawals and trading in Canada across all trading platforms for Tether (USDT), Dai (DAI), Wrapped Bitcoin (WBTC), Wrapped Ether (WETH), and Wrapped Axelar (WAXL),” the crypto exchange said in a statement.
This decision aligns with a broader trend in Canadian exchanges responding to regulatory guidance on the legal status of stablecoins.
According to a Kraken, it is mandated to suspend activities in Canada for Tether (USDT), Dai (DAI), Wrapped Bitcoin (WBTC), Wrapped Ether (WETH), and Wrapped Axelar (WAXL). The suspension will take effect on November 30 at 12:00 p.m. EST for deposits and trading, with withdrawals ceasing on December 4 at 11:00 a.m. EST.
Users are advised to consider supported trading pairs or withdraw their balances before November 30. Kraken emphasizes the conversion of remaining assets into USD at prevailing market rates on December 5.
The move follows similar actions by other Canadian exchanges, including Coinbase and Crypto.com, in response to regulatory scrutiny on stablecoins. The Canadian Securities Administrators clarified their stance on value-pegged crypto assets as securities in December, setting the stage for these regulatory actions.
Despite regulatory challenges, some platforms, like Coinbase, appreciate Canadian lawmakers’ efforts to recognize citizens’ rights and distinguish stablecoins from other cryptocurrencies.
