Fintech company Paxos issued a statement reporting Canadian customers who will not be able to make transactions from their accounts from June 2, except to withdraw 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 and Exchange Commission (OSC) at a future date."
Paxos assured that customer funds will remain safe in their accounts. Accounts without a balance will be automatically deactivated on May 9.
The company also asked its customers to transfer all their funds from their Paxos wallet before June 2. If any customer fails to transact on or before June 2, they can still get their funds back through a lengthy process.
Customers who have moved outside of Canada have been advised to contact customer service to update their documentation in order to continue using Paxos services.
Similarly, any customers who have moved to Canada have been advised to reallocate their funds to other wallets.
The Canadian Securities Administrators (CSA) published a warning on February 22 requiring cryptocurrency exchanges to sign new contracts with legal capacity. Paxos decided to exit the Canadian market at that time due to stricter laws and regulations.
The amended commitment contains a provision that prohibits purchasing or depositing value-referenced crypto assets, or stablecoins, through crypto contracts without the prior written consent of the CSA.
Also read: Decentralized exchange dYdX withdraws from the Canadian market
