Ontario regulators bar regulated crypto exchanges from trading Tether

Ontario Securities Commission (OSC) has prohibited two regulated cryptocurrency exchanges — Wealthsimple and Coinberry — from dealing with the stablecoin Tether (USDT). As reported by The Block, citing the firms.

Both platforms are based in Toronto and are licensed to operate. Wealthsimple was granted the status regulated Canadian crypto exchange in September 2020. It permits the companies to trade Bitcoin, Ethereum, Bitcoin Cash and Litecoin.

According to the screenshot accompanying the publication, USDT was classified under the category “Prohibited crypto assets.” The reasons for this decision are not disclosed in the documents provided to the firms.

An OSC spokesperson told The Block that the regulator does not plan to introduce special rules for crypto exchanges, as they “already fall under the existing securities-law requirements.”

Lawyer Christine Duhaime suggested that OSC’s decision could have been influenced by the settled dispute between Bitfinex and Tether and the New York Attorney General’s office.

Earlier Bloomberg reported that the US Department of Justice has begun an inquiry into possible banking fraud by Tether’s executives. The company described the article as clickbait, based on unnamed sources and claims from years past.

As reported in June, Eric Rosengren, president of the Federal Reserve Bank of Boston, described USDT as a threat to the stability of the financial system.

Subscribe to ForkLog news on Facebook!