Coinbase Suspends USDT, DAI, and RAI Trading in Canada: What You Need to Know

Crypto exchange Coinbase (COIN) will suspend trading with USDT, DAI and RAI stablecoins for Canadian users starting at the end of this month, the company said in an email to customers. This news has sent ripples through the Canadian cryptocurrency market. The US-based cryptocurrency exchange, Coinbase has announced its decision to halt trading of prominent stablecoins, namely Tether (USDT), Dai (DAI), and RAI, impacting Canadian users significantly.

On August 17th, Coinbase announced that it would halt trading of Tether (USDT), Dai (DAI), and RAI stablecoins for Canadian users starting August 31st. This means Canadian Coinbase users will no longer be able to buy, sell, or trade these specific stablecoins on the platform after this date. Many are wondering why this sudden change.

Why is Coinbase Suspending These Stablecoins?

Coinbase has declared its intention in an email to customers to suspend trading for three widely used stablecoins in Canada, which includes trading of the largest stablecoin, Tether (USDT). The reason? According to Coinbase, Tether (USDT), RAI, and DAI no longer meet the company’s listing standards based on its internal review process. However, in a recent email to customers on Thursday, Coinbase announced that Tether (USDT), RAI, and DAI no longer meet the company’s listing standards based on their assessment.

Impact on Canadian Crypto Users

The suspension of USDT, DAI, and RAI trading on Coinbase in Canada presents challenges for users who rely on these stablecoins for trading, staking, or other DeFi activities. Users holding these assets on Coinbase are advised to consider converting them to other cryptocurrencies or withdrawing them to alternative platforms before the deadline. This move comes in response to evolving regulatory landscapes and internal compliance reviews.

What are the Alternatives?

While Coinbase's decision is a significant development, Canadian users still have access to a range of other stablecoins and cryptocurrency platforms. Researching alternative options and understanding the risks associated with each is crucial. Explore other exchanges that support USDT, DAI, and RAI, or consider switching to different stablecoins available on Coinbase.