NewsletterBreaking: Paxos To Shut Down Operations In Canada; More To Follow?
The New York-based crypto platform, Paxos, recently announced that it would stop offering services to customers based out of Canada. This comes after a number of Canadian users reported receiving an email from the firm stating that it would be winding down services from early next month.
Paxos Ends Support For Canada
What comes as a surprise to many, Paxos abruptly notified its Canadian users on Wednesday of an early departure as it plans to disable all customer accounts on May 9. In its email, the crypto firm was quoted as saying:
Paxos has determined it will no longer support customers in Canada moving forward. Given your Paxos account remains unfunded, your account will be disabled.
According to Block’s report, the sudden decision came as a part of growing regulatory concerns in the country. Earlier this week, another reputable cryptocurrency platform dYdX — which operates as a decentralized crypto derivatives exchange (DEX) — said that it would no longer be accepting new members based in Canada.
Read More: Is Bankrupt FTX Exchange Looking For A Comeback In Q2 Of 2023?
Growing Regulatory Concerns
This recent closure comes against the backdrop of new regulations set by the Canadian Securities Administrators in February. The financial watchdog issued a warning to all operational crypto exchanges and trading platforms to comply with increased “investor protection commitments”.
As reported earlier on CoinGape, Paxos is also being pressured by U.S. regulators amid the ongoing crypto crackdowns. The firm received a letter from the Securities and Exchange Commission (SEC) in February informing that the agency was investigating the company’s BUSD stablecoin partnership with the Binance exchange. Paxos received an additional order from the New York Department of Financial Services to cease the issuance of BUSD as it was deemed to be an unregistered security.
Also Read: U.S. Fed President Hints At More Interest Rate Hikes Following CPI Report
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Crypto Market Crash Deepens as $1 Billion in Bitcoin, ETH, XRP, Altcoins Liquidated
- Bitcoin Price Crash to $89K, Last Chance to Buy Under $90K, Says Gemini Co-Founder
- XRP Gets Major Boost as Four Spot ETFs Prepare for Launch This Week
- Breaking: Solana ETFs by Fidelity and Canary Marinade to Launch on Tuesday
- Just-in: White House Reviews IRS Proposal To Tax US Citizen’s Outbound Crypto Holdings
- Will MOODENG Reach $0.1 and MEW Hit $0.002 After Robinhood Listing?
- What’s Next for Cardano Price After Breaking Below Key Support Level?
- Pi Coin Price Could Jump 30%, But There’s a Catch
- Expert Sees XRP Price Rally if it Holds Key Support Ahead of Ripple ETF Launch
- Chainlink Price Eyes Breakout as Whales Scoop 150K $LINK
- Top Analysts Predict How Low Bitcoin Price Might Fall?
