Canadians for a long, have been looking for a safe, trusted, and regulated platform they can acquire crypto assets. Coinberry last month became the first Canadian pure-play crypto trading platform. However, Tether, a US dollar stablecoin, has been banned in Canada.
Tether is the most active stablecoin in the crypto-assets ecosystem, with a market valuation of $66 billion. The dollar-based stablecoin allows investors to end trade and store their funds in something that reflects the actual value of the dollar or in another stablecoin.
Warnings have recently been issued regarding stablecoins, including having only fractional actual dollars reserves. Some stablecoins issuers were alleged to only possess commercial paper, government securities, and other assets.
In the US, Tether was a subject of a criminal investigation by the US Department of Justice in July. Regulators in the United States have also been giving warnings about the need for government to monitor stablecoins.
In Canada, Securities Administrators are considering implementing a temporary framework that allows crypto assets to operate in a regulated market. Crypto assets trading platforms must adhere to regulatory requirements to ensure the safety of investors.
Although regulators are ardent to foster innovation to combat novel circumstances, it may mean more scrutiny in the stablecoin market as well as enforcement actions. Tether remains the biggest systemic risk to the crypto-assets ecosystem.