Paxos To Shut Down Operations In Canada; More To Follow?

Paxos, a cryptocurrency platform headquartered in New York, has announced its decision to discontinue its services to customers in Canada. The announcement was made after several Canadian users reported receiving an email from Paxos, stating that it would be winding down its operations starting early next month.

Paxos Ends Support For Canada

Paxos, a New York-based cryptocurrency platform, has surprised its Canadian users with an email stating that it will be ending its services in Canada from May 9. The email from the firm cited a decision to stop supporting Canadian customers moving forward and the accounts of unfunded users would be disabled. This decision is said to be a response to increasing regulatory concerns in Canada, according to a report by Block. Another cryptocurrency platform, dYdX, also announced earlier this week that it would no longer accept new members based in Canada, which adds to the growing trend of cryptocurrency platforms exiting the Canadian market.

The recent shutdown of Paxos in Canada occurred in the midst of new regulations introduced by the Canadian Securities Administrators in February. The regulatory body issued a warning to all cryptocurrency exchanges and trading platforms to comply with heightened “investor protection commitments”.

In addition to regulatory pressures in Canada, Paxos is also facing scrutiny from US regulators amidst the ongoing crackdown on the crypto industry. In February, the Securities and Exchange Commission (SEC) sent a letter to the company stating that it was investigating Paxos' BUSD stablecoin partnership with Binance. Furthermore, the New York Department of Financial Services ordered Paxos to stop issuing BUSD, citing it as an unregistered security.

Here are some Paxos information in WikiBIT:

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