The Fintech company Paxos released a statement informing Canadian customers that they won’t be able to transact from their accounts starting from June 2, except for withdrawing their funds.
Paxos made the choice while it was still assessing “its readiness to re-enter the Canadian market in cooperation with the Ontario Securities Commission (OSC) at a future date.”
Paxos guaranteed that the customer’s money would be safe in their accounts. By May 9th, accounts that have no balance will be automatically disabled.
Additionally, the business requested that customers transfer all of their funds out of their Paxos wallets by June 2nd. Customers who fail to complete the transactions by June 2nd may still be able to recover their money after a drawn-out process.
Customers who have relocated outside of Canada have been advised to get in touch with customer service to update their paperwork so they can keep using Paxos services.
Customers who have relocated to Canada have also been advised to transfer their money to alternative wallets.
On February 22, the Canadian Securities Administrators (CSA) issued a notice requiring cryptocurrency exchanges to enter into new, legally binding contracts. Due to stricter laws and regulations at the time, Paxos made the decision to leave the Canadian market.
A clause in the amended undertaking forbids using crypto contracts to acquire or deposit Value Referenced Crypto Assets, or stablecoins, without the CSA’s prior written approval.
Compiled by Coinbold
