JAKARTA - New York-based crypto platform Paxos is discontinuing services for users in Canada. This decision was taken after a number of Canadian users reported receiving emails from the company announcing service closures early next month.
Paxos suddenly notified its Canadian users on Wednesday, April 12 about closing their services on May 9. In the email sent, the crypto company stated that it would no longer support customers in Canada as users' Paxos accounts in Canada still do not have funds.
This decision shocked many, and it is known that Paxos is facing regulatory pressure in Canada. Canadian Financial Supervisory Authority, Canadian Securities Administrators, issued a new regulation in February requiring crypto exchanges and trading platforms to comply with investor-enhanced protection commitments.
Paxos is also facing pressure from regulators in the United States (US). In February, the Securities and Exchange Commission (SEC) sent a letter to Paxos stating that it was investigating Paxos' stablecoin partnership with crypto exchange Binance.
Paxos also received additional orders from the New York Department of Financial Services to stop issuance of BUSD because it is considered an unregistered securities.
Penutupan layanan di Kanada oleh Paxos ini menjadi peristiwa terbaru dalam rangkaian pengetatan regulasi terhadap kripto di berbagai negara. Pelaku pasar kripto di Kanada dihadap pada peraturan yang semakin ketat dalam upaya meningkatkan perlindungan investor.
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