Crypto trading company Paxos will no longer provide its services in Canada, according to a support post from the company on April 11.
In that post, Paxos said that it will close Canadian accounts that contain no funds on May 9. It also said that it will stop all Canadian accounts from transacting on June 2.
The company said that customers will be able to make withdrawals after the deadline, but that they should expect delays and longer waiting periods.
Paxos stated that it will consider operating in Canada once again if it can comply with regulations. However, in a relevant email obtained by CryptoSlate, Paxos simply declared that it “will no longer support customers in Canada moving forward.”
Paxos’ decision seems to be due to new Canadian regulations that require crypto services to segregate Canadian customer funds and avoid offering particular services.
Other platforms including dYdX, Blockchain.com, and OKX are also ending their Canadian services. However, certain platforms such as Coinbase, Kraken, and Crypto.com believe that they can comply with the rules and continue their Canadian operations.
Though Paxos will continue to operate elsewhere, it faces regulatory challenges in the U.S. as well. Notably, Paxos was compelled by the New York Department of Financial Services to discontinue its Binance USD (BUSD) stablecoin in February.
Paxos also saw its bank charter application expire on March 31, suggesting that there are regulatory obstacles around one of its planned services.
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