Paxos, a renowned cryptocurrency trading company will no longer offer its services to Canada. The news first broke in a support post from the company on April 11.
In the post, Paxos reveals plans to shut down its Canadian accounts that bear no funds (empty or unfunded) by May 9, 2023. Further, the trading firm committed to stopping all Canadian accounts from transacting beginning June 2, of the same year.
Nevertheless, customers will still be able to make withdrawals even after the deadline but should expect delays, and longer waiting periods, among other challenges.
The decision to wind down Canadian operations comes amid new regulations in the country. Based on the recent demands, regulators want cryptocurrency services to separate Canadian customer funds and avoid offering certain services entirely.
Besides Paxos, other exchanges that will be closing down shops include dYdX, Blockchain.com, and OKX. Still, others believe they can very well survive the country through compliance and adherence to the rules. They include Coinbase, Kraken, and Crypto.com
Paxos Could Avoid Canadian Regulations, But What About The U.S.?
It is worth mentioning that besides Canada, even the United States has Paxos in the spotlight. The crypto trading firm is facing regulatory challenges in the U.S. as well after the New York Department of Financial Services (NYDFS) forced Paxos to discontinue its Binance USD (BUSD) stablecoin in February.
Furthermore, Paxos also witnessed the expiry of its bank charter application on March 31. This suggests that the trading firm is facing regulatory obstacles up ahead in one or multiple of its planned services.
Paxos Canadian Shutdown Not Permanent
Despite the concerning news, there is still light at the end of the tunnel. According to Paxos, the company would consider resuming operations in Canada later if it manages to adhere to the regulations.
Nevertheless, in a related email, the trading firm made a simple declaration that it “will no longer support customers in Canada moving forward.”
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