Paxos, a cryptocurrency company with headquarters in New York, recently declared that it would discontinue serving Canadian customers.
This comes after some Canadian users claimed to have received an email from the company informing them that services will be ending at the beginning of next month.
Paxos abruptly informed its Canadian subscribers on Wednesday of an early exit as it planned to delete all client accounts on May 9 and it came as a shock to many. The cryptocurrency company was reported as saying in its email:
“Paxos has determined it will no longer support customers in Canada moving forward. Given your Paxos account remains unfunded, your account will be disabled”
According to Block’s report, the unexpected choice was made in response to expanding regulatory worries in the nation. Though Paxos will continue to operate elsewhere, it faces regulatory challenges in the U.S as well.
Notably, Paxos was compelled by the New York Department of Financial Services to discontinue its Binance USD (BUSD) stablecoin in February. The crypto company also saw its bank charter applications expire on March 31, suggesting that there are regulatory obstacles around one of its planned services.
Another respected cryptocurrency exchange, dYdX, which functions as a decentralized crypto derivatives exchange (DEX), said earlier this week that it will stop taking new members from Canada.
