The infrastructure company and stablecoin issuer Paxos will exit the Canadian market, according to a press release.<\/p>\n
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.<\/p>\n
The company did not rule out returning to the Canadian market in the future.<\/p>\n
\n\\”We will reassess our presence in the region in light of user needs,\\” said representatives.<\/p>\n<\/blockquote>\n
The departure from Canada is tied to a tightening of the regulatory regime. In December 2022, CSA<\/span> tightened the requirements<\/a> for crypto firms after the collapse of FTX<\/a>, extending them to entities from other jurisdictions.<\/p>\n
According to the order, companies dealing in digital assets would have to undergo preliminary registration with the regulator by the end of March.<\/p>\n
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.<\/p>\n
Paxos faced regulatory problems outside Canada as well. On February 10, NYDFS<\/span> initiated an investigation<\/a> into the company. Later the regulator ordered the firm to cease issuing the stablecoin BUSD, linked to the Binance exchange.<\/p>\n