Paxos, a crypto financial services provider, is set to discontinue its services in the Canadian market by May 9th, 2023. This is due to regulatory reasons that have surfaced recently in February when the Canadian Securities Administrators published new set of regulations targeted towards crypto exchanges and trading platforms.

The move did not come as a surprise considering last week decentralized crypto derivatives exchange protocol dYdX said it had stopped onboarding new users based in Canada.

The decision to end its presence in Canada is the latest setback for the financial services provider that had to let go of its dream of getting a national banking charter by the end of March. Paxos is also being investigated by U.S. regulators such as the Securities and Exchange Commission, as well as the New York Department of Financial Services over a stablecoin project with Binance, BUSD. In this regard, Paxos stated that it has already ceased minting the token.

Despite the recent developments, Paxos has assured its focus on serving enterprise clients in the digital assets ecosystem by saying: “While our platform will no longer support Canadian customers in the immediate term, we will reassess our presence in this region in partnership with our clients’ evolving needs.”

It is yet unclear how the situation will move forward and which other regions will be impacted in the foreseeable future. What is certain is that financial services providers such as Paxos, as well as crypto exchanges and trading platforms must comply with regulations set out by the respective authorities in order to achieve sustainable growth.



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