Paxos becomes latest crypto company to end services in Canada
Cryptocurrency exchange Paxos will no longer offer services in Canada, according to the company’s support post. April 11th.
In the post, Paxos said it would close Canadian accounts without funds on May 9. He also said he would suspend trading on all Canadian accounts on June 2.
The company said customers can make withdrawals after the deadline, but should expect delays and longer waiting times.
Paxos said it would consider doing business in Canada again if it can comply with regulations. However, in a related email obtained by CryptoSlate, Paxos simply declared that it “will no longer support Canadian customers.”
Paxos’ decision is likely due to new Canadian regulations requiring crypto services to segregate Canadian customer funds and avoid providing certain services.
Other platforms such as dYdX, Blockchain.com and OKX have also terminated their services in Canada. However, certain platforms such as Coinbase, Kraken and Crypto.com believe they can continue to operate in Canada in compliance with the regulations.
Paxos continues to operate in other regions, but faces regulatory challenges in the United States as well. Notably, Paxos was forced by the New York Department of Financial Services in February to decommission the Binance USD (BUSD) stablecoin.
Paxos also confirmed that the Bank Articles of Incorporation application will expire on March 31. This suggests a regulatory roadblock to one of the planned services.
A post about Paxos becoming the latest crypto company to go out of service in Canada first appeared on CryptoSlate.