12 ms·
Crypto.com will delist Tether in Canada to comply with Ontario regulator
- _fat_santa 4y agoThey really buried the lede here. > Crypto.com’s decision to delist Tether follows regulatory clarification from the Canadian Standards Association (CSA) in December. The update was posted to the Ontario Securities Commission’s website. Official Guidance CSA: https://www.osc.ca/en/news-events/news/csa-provides-update-crypto-trading-platforms-operating-canada https://www.osc.ca/en/news-events/news/csa-provides-update-c...
- arsome 4y agoInteresting, looks like a blanket statement that any stablecoin could be considered a security or derivative. > the CSA is of the view that stablecoins, or stablecoin arrangements, may constitute securities and/or derivatives. Crypto trading platforms that are registered or that have entered into a pre-registration undertaking are reminded that they are prohibited from permitting Canadian clients to trade, or obtain exposure to, any crypto asset that is itself a security and/or a derivative.
- jasonlingx 4y agoThe other stablecoins are unaffected though…
- junofan 4y agoLuckily the CSA has no power.
- stevenhuang 4y agoYou are on a thread discussing crypto.coms decision to delist tether as result of CSA's ruling...
- junofan 4y agoCan you link me to this “ruling?”
- scoopertrooper 4y agoGOP included a link to the CSA press release. I don’t know what more you’re expecting here or what particular point you’re trying to make.
- JumpCrisscross 4y ago> the CSA has no power Ontario’s securities regulator is on par with the toughest state securities regulators in America. They also have cross-border powers that lends them the jurisdictional heft of the American financial system.
- acaloiar 4y agoI must be missing a crucial detail. Logically Crypto.com's action: > any remaining USDT balances would “automatically” be converted to Circle’s USD Coin, another stablecoin that tracks the price of the dollar. Does not follow from the CSA's stated position: > the CSA is of the view that stablecoins, or stablecoin arrangements, may constitute securities and/or derivatives --- Why are they willing and able to have customers with USDC balances, but not USDT? Based on the CSA's position, wouldn't they want to delist all stablecoins?
- Scoundreller 4y agoCanadian Securities Administrators! Canadian Standards Association deals with things like helmets and electrical product safety.
- reustle 4y agoMaybe Canadian investors are also going to need helmets for this upcoming ride.
- cwkoss 4y agoI wonder how Tether getting broadly delisted would impact crypto prices. Theoretically, its cash on the sidelines, so shouldn't impact the price. Increases the likelihood of tether imploding as withdrawals shrink the proportional size of any reserve issues. That could certainly create a lot of negative attention, raising fear and dropping price. Practically, I think tethers are often cash set aside for purchasing crypto in the future, so I wonder if this will lead to a significant portion USDT converting into BTC and other cryptos to become more 'liquid' in terms of transferability within the crypto banking system. (Not all exchanges people hold Tethers on are necessarily hooked up to their banking info for a wire transfer). Some might trade to BTC to move the value, which could increase price. Who knows, will be interesting to see how it plays out if/when it plays out.
- ivalm 4y agoI think it just pushes these markets to switch to usdc, which is a good thing as (1) making crypto more tied to audited assets (2) make redemption subject to AML.
- hestefisk 4y agoAgree. People bought tether to have a stable store of value so it will only push funds into USDC or similar.
- vkou 4y agoAssuming that Tether is a fraud...: The problem is that Tether is either worth $1 (Current status quo), or $0 (When everyone loses faith in it.) It will transition from one to the other at... Some point. And there will, by definition, be a lot of bagholders who have not managed to redeem it in time. The rest of the ecosystem will not have a soft landing from that. Oh, sure, anyone who bought USDC will be fine, but all the non-pegged coins will be in for a very, very rough ride.
- loopdoend 4y agoHow is $0 even possible? It seems to me it must be at least partially backed.
- ilrwbwrkhv 4y agoDamn. This is going to shock Canadians. The only two investments or risk Canadians could make or take were housing and crypto.
- vkou 4y agoThis is nonsense for two reasons. 1. Tether isn't an investment, it doesn't pay yield, and the only direction it can go is down. It's either worth $1 (it's current value), or $0 (when it falls apart). That's not an investment. At least when I go to Vegas, and put my wallet on black, I can win money. 2. Since when were Canadians unable to... Buy stocks..? Mutual funds? Index funds? REITs? BTC? Degeneratively day-trade options and meme stocks and margined-to-the-neck forex?
- mattmerc 4y agoExactly. Not sure they understand how things work in Canada at all. If anything, average investors in Canada can more easily access investable assets compared to American counterparts. For instance, there is no pattern day trading equivalent. Also (somewhat related), I don't think its a coincidence that Canada is a haven for financial fraud https://www.youtube.com/watch?v=Wx51CffrBIg https://www.youtube.com/watch?v=Wx51CffrBIg.
- zht 4y agowe have plenty of exposure to US stock markets? and the treatment of all capital gains as half of your marginal rate regardless of time held?
- werdnapk 4y agoCanadian here. Not shocked.
- readthenotes1 4y agoWhat is the value of holding USDT over USD? Is it that some places that have other coins won't hold USD but will hold USDT?
- cwkoss 4y agoTakes ~ 6 days to transfer USD between two crypto exchanges (two wires), whereas USDT can transfer in less than an hour. Or so I hear, not up to date on the latest in the crypto world.
- alfalfasprout 4y agoI literally just wired someone money today and it was <1 hour. If it's taking 6 days to do a wire then something else is going on.
- dibt 4y agoA wire shouldn't take that long, but ACH will take 5 business days. They might be thinking of that.
- olalonde 4y agoInternational wire transfers take from 1 to 5 working days to complete. Sometimes more when the receiving bank requires additional documentation or refuses the transfer. They also cost a lot more (~50$ per transfer) and sometimes require a physical visit to a bank branch.
- Galanwe 4y agoYou did not _really_ "wire money to someone in <1h". Your bank signaled its willingness to move money to an other bank, who is in turn trusting enough of your bank to preemptively display that money as "received" while the actual settlement will happen the next day. Modern, traditional, banking and brokerage is not based on actual fund transfer, but on the layering of trust relationships and complicated settlement state machines to give the impression of instantaneous transfers. All operations done on money "just received" is done on margin, though at 0 cost.
- robocat 4y agoFull title: Crypto.com Will Delist Tether in Canada to Comply With Ontario Regulator
- dang 4y agoYes. Fixed now.
- SilasX 4y agoCoincidentally, the exchange Gemini (operating in the US along other countries under a NY state Bitlicense) just started listing it, after holding out for a while. I don’t have a public link to announcement, but it shows up on their currency list now and it appears on the Gemini exchange. https://www.gemini.com/prices https://www.gemini.com/prices
- TechBro8615 4y agoThe Winklevi have the Fed stamp of approval. CBDCs coming soon to a government-approved centralized exchange near you!
- buzzert 4y agoSince no one is actually investing in Tether (since it’s a deflationary asset), I presume the only purpose of labeling it a “security” is to just make it illegal. Given the fact that the trucker protesters were using Tether/cryptocurrency to fund their demonstrations, this is a very bad look for the Canadian government.
- Galanwe 4y agoTether is not deflationary, its a centrally pegged stable coin. No tether is burned unless redeemed.
- UncleEntity 4y ago> No tether is burned unless redeemed. Which is the definition of monetary deflation…
- JumpCrisscross 4y ago> Which is the definition of monetary deflation No, it's the definition of a shrinking money supply. Inflation and deflation are measures on purchasing power, not money supply.
- UncleEntity 4y agoWell, you see, there are two types of inflation, monetary and price. Monetary inflation is when you increase the money supply through the printing press or digging up new gold or whatever. The converse for monetary deflation. Price inflation != monetary inflation though “they” want you to believe it is.
- deleted 4y ago[deleted]
- deleted 4y ago[deleted]
- deleted 4y ago[deleted]
- polygamous_bat 4y agoI think people are underestimating the problems that a blanket Tether ban from North American markets would cause. You think a Tether ban would cause people to switch to USDC? Ok, but that means some Tether needs to vanish and some USDC needs to be created. How does that happen? Ideally, it goes from Tether -> USD -> USDC... and there lies the problem. We don't know if there is enough USD in Tether's coffer to redeem all the withdrawals. And if there is not, or even if there is a doubt about it, then it becomes a game where the last person to withdraw loses. How would that look for crypto in general? How would people react to USDC if they or someone they know just got burned by another stablecoin last week?
- jasonlingx 4y agoIf Tether is insolvent then better to ban it earlier than later, before it becomes even “too bigger” to fail.
- grugagag 4y agoThis exercise will likely make Tether fail
- _3u10 4y agoExactly everything is insolvent. If tomorrow people were like hey everyone USD is going to fail you’d get the Great Depression unless the fed printed money. And there isn’t nearly enough paper money for it.
- seanhunter 4y agoThat's wildly and obviously untrue. Let's look at the definition of insolvency[1] "when an individual or company can no longer meet their financial obligations to lenders as debts become due." Take a trivial example - a person with no debts. You have to concede such people do exist in the world. They are by definition not insolvent, and cannot be. Even if the currency completely collapsed and USD had zero value this would not make them insolvent because they have o debt and therefore no financial obligations. [1] https://www.investopedia.com/terms/i/insolvency.asp https://www.investopedia.com/terms/i/insolvency.asp
- pellucide 4y agoWaiting for the day when crypto.com becomes irrelevant
- rickreynoldssf 4y agoI don't see much of a need for USDT or any stable coin to be on centralized exchanges for much longer. Its useful as a place to park value on-chain via DEXs in between trades, kind of like Treasuries IRL. Even for Bitcoin its actually easier to trade WBTC on an EVM chain with stable coins. IMO It's silly to hold anything on a central exchange, they should go away for everything but fiat on/off ramps.
- rib3ye 4y agoI wonder who found this out on Nov 8, 2022.
- nailer 4y agoRemember Tether is bullshit. Pardon the bad language but it’s a scam and as someone involved in blockchain I hate it. https://youtu.be/-whuXHSL1Pg https://youtu.be/-whuXHSL1Pg
- voytec 4y agoInformative post[1] "Shorting Tether" and related conversation[2] with >300 comments from 3 days ago [1] https://fakemoneynews.substack.com/p/shorting-tether-for-fun-and-profit https://fakemoneynews.substack.com/p/shorting-tether-for-fun... [2] https://news.ycombinator.com/item?id=34299618 https://news.ycombinator.com/item?id=34299618
- HeartStrings 4y agoTether histeria is pretty much irrelevant since it’s has been a known unknown since 2015 and anyone with half a brain is using USDC.
- spiralx 4y agoWhich of course, has also never had a proper audit done.