Blockchain-focused fintech company Paxos has announced that it will exit the Canadian market by June due to the upcoming regulatory framework.
Customers will be able to make transactions until June 2.
- The firm said customer funds would be safe and be able to be fully seen in the accounts.
- The customers will need to withdraw all their funds from the accounts as soon as possible.
- User accounts without any funds will be automatically closed on May 9.
- Customers
who keep their funds in the Paxos accounts will still be able to access
and withdraw their balances after June 2, though they will not be able
to trade.
- Paxos
suggested that the customers transfer their fiat balances to bank
accounts under their name and digital assets to external wallets.
- Following
the exit, Paxos will start evaluating if it would be ready to re-enter
the Canadian market in cooperation with the Ontario Securities
Commission (OSC) at a later date.
- In
February, the Canadian Securities Administrators (CSA) published a
notice requiring crypto exchanges to sign legally-binding commitments
while waiting to be registered with the regulatory body.
- All crypto exchanges must register with Canadian regulators to operate in the country.
- Due to the new regulations, several crypto exchanges, including OKX, Deribit, and Blockchain.com, had to exit the Canadian market.
- On
the other hand, some exchanges, like Coinbase and Kraken, signed the
pre-registration undertaking with the OSC to continue operating in
Canada, hinting at their intention to comply with the upcoming
regulations. AI-designed avatar
