Paxos ends Canadian operation amid new crypto regulation
- Paxos leaves the Canadian market new crypto regulations.
- Coinbase, Kraken and other crypto exchanges continue to operate in Canada.
Paxos said it has planned to exit the Canadian market because the crypto exchange cannot comply with the new crypto regulations in Canada. The crypto trading company said it would no longer serve Canadian users.
Paxos released a support post on April 11, explaining the reason they are leaving the Canadian market and how users can recover their digital assets.
The company will block/close all Canadian accounts without funds by May 9, and the deadline for withdrawing the amounts from wallets is June 2; after this, Paxos will block all accounts for transactions.
Later, Paxos said it can restart its operations in Canada if it complies with the stricter crypto regulations in Canada. Paxos is one of many to leave the Canadian market.
dYdX, OKX and Blockchain.com are among the leading exchanges planning to exit the market.
Some large centralized crypto exchanges such as Coinbase, Kraken and Crypto.com believe they can operate in Canada under the recently launched crypto regulations by the nation.
Pax Dollar Price Overview
According to CoinMarketCap, USDP is ranked as the 57th most traded cryptocurrency. At press time, USDP was trading at $0.9989 with a 24-hour trading volume of $53,160,188.
USDP is a fiat-collateralized stablecoin developed in September 2018. Trading Pax’s native currency is available on dozens of centralized crypto exchanges, including Kucoin, Huobi Global, Upbit and Bitrue.
US dollars back the Pax Dollar and the total reserve of issued USDP is held in a company’s account with the US depository institutions. Uniswap V3 is the only decentralized crypto exchange that offers the ability to trade USDP.
According to data, the total circulating supply of USDP is 878,084,065, and the fully diluted market cap is $876,637,249. The total market dominance of Pax Dollar is 0.07%.
According to Crunchbase, Paxos raised around $543.5 million in seven different funding rounds, and over 24 investors participated in these seven investment rounds. Some of the major investors of Paxos are Alameda Research, PayPal Ventures, MercadoLibre, Liberty City Ventures, Senator Investment, Mithril Capital Management and a few others.
Alameda Research was a quantitative trading firm founded by crypto titan Sam Bankman Fried and led by his so-called girlfriend, Caroline Ellison. Alameda was the sister company of the now bankrupt third largest crypto exchange FTX.
Some leading investments by Paxos are Espresso Systems, Aptos, Starlight, Doppel, Higlobe, TipLink, including several others.
On April 3, Paxos released a document informing that their active wallet users reached 10 million globally. Paxos noted that despite the ongoing market challenges, it has shown “clear growth” by gaining “customer-driven support”.
Disclaimer
The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
