Paxos Will Cease Operations In Canada On June 2nd

Paxos, the creator of the BUSD stablecoin, intends to close its Canadian operations on June 2nd, 2023. Though the announcement on its website does not mention regulatory hurdles as a reason for exit, the platform joins the ranks of OKX and dYdX, which recently announced that they would cease operations in Canada due to more stringent crypto regulations.

Recently, Paxos advised clients to withdraw their funds as soon as possible because user accounts shall be disabled within the first week of June. The platform will reportedly prohibit Canadian users from initiating any trades after the deadline, but those who have balances on Paxos would be able to access and withdraw funds with longer wait times after the deadline.

It was announced that accounts with zero balances shall be automatically closed on May 9th, but claimed that user funds would be safe and that the balances on the accounts would be reflected in accordance with the corresponding terms and conditions.

The FTX and Terra disasters compelled financial regulators around the world to restructure their regulatory policies in order to protect investors. On February 22nd, the CSA (Canadian Securities Administrators) issued a notice requiring all cryptocurrency platforms to sign new legally binding agreements if they wanted to continue operating within the country.