Rumor: Paxos Set To Exit Canadian Market On May 9th

Key Points:

• Paxos is exiting the Canadian market due to regulatory reasons, disabling accounts of Canadian customers on May 9, 2023.
• The exit from Canada follows new regulations published in February by the Canadian Securities Administrators, which demand compliance with “enhanced investor protection commitments.”

Paxos has been reported that it will no longer serve customers in Canada. The company said it would disable Canadian customers’ accounts on May 9, 2023. According to sources familiar with the matter, the move is due to regulatory reasons.

Thank you for choosing Paxos. Paxos has determined it will no longer support customers in Canada moving forward.

Given your Paxos account remains unfunded, your account will be disabled on May 9th 2023. No action is required on your part and we will continue to service your account as usual until May 9th 2023.

Paxos reportedly stated

Last week, dYdX, a decentralized crypto derivatives exchange protocol, announced that it stopped onboarding new users based in Canada. These developments follow new regulations published in February by the Canadian Securities Administrators, which demand crypto exchanges and trading platforms comply with “enhanced investor protection commitments.”

Despite the exit from Canada, the firm remains focused on serving enterprise clients and their growth into the digital assets ecosystem. The company said it would reassess its regional presence in partnership with its clients’ evolving needs.

This latest blow for Paxos comes after the company’s application for a national banking charter expired in March, ending its dreams of a national banking charter. It is also facing pressure from state and federal regulators in the U.S.

In February, the Securities and Exchange Commission sent Paxos a letter informing the company that the regulator was investigating its joint stablecoin project with Binance, BUSD. The New York Department of Financial Services also ordered the firm to stop issuing BUSD. The company says it has stopped minting the token.

The exit from Canada is a significant setback for Paxos, but the company’s focus on serving enterprise clients may help mitigate the move’s impact. However, regulatory pressures in the U.S. may present greater challenges for the company.

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