The infrastructure company and stablecoin issuer Paxos will exit the Canadian market, according to a press release.
User profiles will be automatically locked on May 9, 2023, if the balance is zero. From June 2, the platform will halt all operations except withdrawals.
The company did not rule out returning to the Canadian market in the future.
\”We will reassess our presence in the region in light of user needs,\” said representatives.
The departure from Canada is tied to a tightening of the regulatory regime. In December 2022, CSA tightened the requirements for crypto firms after the collapse of FTX, extending them to entities from other jurisdictions.
According to the order, companies dealing in digital assets would have to undergo preliminary registration with the regulator by the end of March.
The new measures also require separation of own and client funds, safekeeping of client assets with a ‘proper custodian’, and a ban on offering citizens the ability to trade on margin.
Paxos faced regulatory problems outside Canada as well. On February 10, NYDFS initiated an investigation into the company. Later the regulator ordered the firm to cease issuing the stablecoin BUSD, linked to the Binance exchange.
In April, the decentralized exchange dYdX also announced its exit from Canada.