The decision coincides with the announcement of tighter crypto regulation by the Canadian Securities Administrators (CSA).
As crypto regulation broadens in Canada, blockchain infrastructure platforms paxos has announced plans to wind down its operations in Canada.
one in statement Published on the company’s website, the firm advised its Canadian customers to begin withdrawing any funds from their accounts. “Starting June 2, you will not be able to make transactions with your Paxos account,” it said.
Paxos customers with no funds in their accounts will be automatically locked out as of May 9. Others who have funds in their accounts will still be able to transact from their accounts till June 2. After that, however, all remaining funds will still be available for withdrawal. , owners will be unable to initiate new transactions on the platform.
In addition, Paxos said that customers can either transfer their digital assets to external wallets or transfer their fiat to bank accounts linked to their “itBit account”.
New crypto regulation responsible for withdrawals
Interestingly, Paxos didn’t explicitly give a reason for pulling out of the Canadian market. However, the decision coincides with the announcement of tighter crypto regulation by the Canadian Securities Administrators (CSA).
The CSA obliges crypto exchanges to enter into legally binding contracts, even while awaiting registration with the regulatory body. as well as csa announced Upgraded its policy for crypto asset trading platforms, effectively limiting trading of stablecoins. The regulation also touched the ground of asset segregation, leverage, capital allocation, transparency etc.
Since then, several exchanges have closed shop within the country. okx Citing new crypto regulation, it shut down its operations in the country on March 24. Furthermore, dYdX stopped on-boarding new users from April 7th. The firm plans to lock all existing customers in a withdrawal-only mode from April 14.
unaltered balance
Meanwhile, some exchanges prefer Gemini And coinbase Near announced That he would remain active in Canada. Coinbase Director of Communications Elliot Suthers said:
“We remain as committed as ever to the Canadian market as a core component of our international road map.”
On its part, Binance is non-committal about its plans for the country. As for Paxos, the firm plans to “assess its readiness to re-enter the Canadian market in cooperation with the Ontario Securities Commission” in the future.
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