Paxos has told its Canadian customers that it will no longer provide services in that country, according to reports from Bloomberg Law on April 12.
In a copy of the relevant email obtained by CryptoSlate, Paxos declared that it “will no longer support customers in Canada moving forward.”
The message does not provide complete details about when it will terminate services. However, it said that it will disable unfunded accounts disabled on May 9.
Though Paxos did not provide any reason for its decision, its actions are likely due to new Canadian securities regulations. Those rules require crypto services to segregate Canadian customer funds and avoid offering particular services.
Other platforms including dYdX, Blockchain.com, and OKX are also ending their Canadian services. However, certain platforms such as Coinbase, Kraken, and Crypto.com believe that they can comply with the rules and continue their Canadian operations.
Though Paxos will continue to operate elsewhere, it faces regulatory challenges in the U.S. as well. Notably, Paxos was compelled by the New York Department of Financial Services to discontinue its Binance USD (BUSD) stablecoin in February.
Paxos also saw its bank charter application expire on March 31, suggesting that there are regulatory obstacles around one of its planned services.
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