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.
The decision was made while Paxos was still determining “its readiness to re-enter the Canadian market in cooperation with the Ontario Securities Commission (OSC) at a future date.”
Paxos ensured that the funds of the customers will remain safe in their accounts. Accounts that do not have any balance will automatically be disabled by the 9th of May.
The company also asked its customers to transfer all their funds out of their Paxos wallet before the 2nd of June. If any customers fail to make the transactions on or before 2nd June can still recover their funds through a lengthy process.
Customers that have moved out of Canada have been advised to contact customer support to update their documentation in order to continue using Paxos services.
Likewise, any customers that have moved into Canada have been advised to reallocate their funds to other wallets.
The Canadian Securities Administrators (CSA) published a notice on February 22 requiring cryptocurrency exchanges to sign new contracts with legal standing. Paxos decided to leave the Canadian market at that time due to stricter laws and regulations.
The amended undertaking contains a provision that prohibits purchasing or depositing Value Referenced Crypto Assets, or stablecoins, through crypto contracts without the CSA’s prior written consent.