In a surprising turn of events, Uphold, a popular US-based crypto exchange, has delisted a swathe of popular crypto assets in Canada, including Shiba Inu (SHIB), Cardano (ADA), and Dogecoin (DOGE).
This unexpected turn of events stems from Uphold’s pursuit of registration with the Ontario Securities Commission (OSC), the regulatory body overseeing securities markets in the province. To comply with the OSC’s evolving regulations, Uphold gave the boot to all the coins in its Tier 4 group and took some out of Tier 3, where the altcoins mentioned were dropped.
As I’m getting a lot of questions about removing assets from the platform for Canadians: we have always been the most compliant platform in any jurisdiction and that simply means that we have to adhere to new rules up north. @UpholdInc
In the eternal words of South Park … pic.twitter.com/72OpZMFPRu
— Dr Martin Hiesboeck (@MHiesboeck) December 17, 2023
While Bitcoin (BTC), Ethereum (ETH), and other major players remain untouched in Tier 3, the delisting of Shiba Inu (SHIB), Cardano (ADA), Stellar (XLM), and Dogecoin (DOGE) has caused ripples within the crypto community.
Some users question the reasoning behind the selective removal, particularly the exemption of Ethereum (ETH).
Reacting to the development, Bill Morgan, an Australia-based crypto lawyer, voiced concerns about the lack of transparency in the decision-making process.
It seems the rules up north don’t require Ethereum to be removed from your platform. Don’t get me wrong I wouldn’t want that to happen but why is Ethereum OK to list but not these ones 👇. What is the legal basis for the distinction? I doubt there a basis for the distinction in… https://t.co/r6xSCnWuEC pic.twitter.com/fjzI0LnucI
— bill morgan (@Belisarius2020) December 17, 2023
Regulatory Changes and Uphold’s Compliance Strategy
The OSC, once a relatively relaxed watchdog, has changed, adopting a stricter stance towards crypto platforms. This move aligns with a global trend, with regulatory bodies across the globe tightening their grip on the burgeoning crypto industry, aiming to protect investors and maintain financial stability.
For Uphold, navigating this regulatory landscape is essential for its Canadian expansion ambitions. The delisting, while potentially unpopular with some users, is a calculated move to appease the OSC and secure its operating license. It’s a strategic trade-off, sacrificing short-term user satisfaction for long-term regulatory compliance.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
The future of the delisted assets in Uphold’s Canadian domain remains shrouded in uncertainty. Users have a grace period until January 15, 2024, to either convert their holdings to other assets deemed worthy by the exchange or withdraw them to external wallets, effectively severing ties with the Uphold platform. After this deadline, any remaining digital assets will be unceremoniously converted into Canadian dollars, a fate colder than a Canadian winter.
This development serves as a stark reminder of the ever-shifting landscape of crypto regulation. While XRP may have weathered this particular storm, the future of other assets remains uncertain.
As regulators tighten their belts, the industry must adapt and evolve, learning to navigate the increasingly complex terrain with agility and resilience. Only then can the crypto ecosystem truly thrive in the face of regulatory headwinds.
Adedoyin is a graduate of Law and a Crypto & Blockchain expert who strongly believes that Blockchain is the future. At TimesTabloid, she focuses on crypto and blockchain educational content.