In a recent development, Paxos, a leading digital asset platform, has announced that it will no longer allow its customers to transact from their Paxos accounts starting from June 2nd, except for withdrawing their funds. The company has released a statement on its website, informing its users of the decision.
The decision has been taken as Paxos continues to assess its readiness to re-enter the Canadian market in cooperation with the Ontario Securities Commission (OSC) at a future date. The company has stated that it is working closely with the OSC to ensure that it meets all regulatory requirements before it resumes its operations in Canada.
Paxos had suspended its operations in Canada in September 2019 after it failed to meet the regulatory requirements set by the OSC. However, the company had expressed its commitment to working with the OSC to address the issues and resume its operations in the country.
Since then, Paxos has made significant progress in enhancing its compliance and risk management systems. The company has also obtained regulatory licenses from various authorities, including the New York State Department of Financial Services (NYDFS) and the US Securities and Exchange Commission (SEC).
Paxos has been expanding its operations globally and has recently launched its services in Singapore. The company has also partnered with various financial institutions to provide them with its blockchain-based settlement platform.
The decision to suspend its operations in Canada is a setback for Paxos, as the country has a thriving digital asset market. However, the company’s commitment to complying with regulatory requirements and its strong track record of providing secure and reliable services to its customers are likely to help it regain its position in the Canadian market.
In conclusion, Paxos’ decision to suspend its operations in Canada is a strategic move aimed at ensuring compliance with regulatory requirements. While it may be a setback for the company, its commitment to working with regulators and providing secure and reliable services to its customers is likely to help it regain its position in the Canadian market in the future.