Paxos to Suspend Operations in Canada Due to Regulatory Pressure
Main page News, Canada, Stablecoins, Regulations

Infrastructure company and stablecoin issuer Paxos intends to exit the Canadian market.

According to the press release shared by the company, user profiles will be automatically blocked on May 9, 2023 if there are no funds in the balance.

From June 2, the platform will stop all operations except for withdrawals.

The company has not ruled out a return to the Canadian market in the future.

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The company's exit from Canada is associated with the strengthening of the regulatory regime.

In December 2022, the Canadian Securities Administrators (CSA) tightened the requirements for cryptocurrency companies after the collapse of FTX, extending them to organizations in other jurisdictions as well.

According to the decree, companies associated with digital assets were required to pre-register with the department by the end of March.

The new measures also include the separation of proprietary and client funds, keeping the latter with a "suitable custodian," as well as a ban on providing citizens with the ability to trade on margin.

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