Regulatory challenges and market fluctuations prompt Dupay's departure as the crypto sector shifts direction

Dupay, a crypto payment card company focused on connecting traditional finance with blockchain technology, has revealed it will shut down, attributing the move to increasing regulatory demands and unstable market conditions. This announcement comes as the crypto sector faces heightened scrutiny and unpredictable interest in digital asset services, as detailed in

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The company's decision echoes recent regulatory actions in Canada, where authorities have introduced a $10 million plan to oversee fiat-backed stablecoins as part of the 2025 federal budget, first reported by Lookonchain. The updated regulations require stablecoin providers to hold adequate reserves, establish comprehensive risk controls, and maintain clear redemption processes, according to

. While these steps are designed to strengthen consumer safeguards and promote financial stability, they also increase compliance expenses for smaller businesses, which could speed up industry consolidation, as highlighted in .

Ongoing market swings have added pressure to crypto businesses. Recently, the JELLYJELLY token—a

coin associated with a social platform—jumped 224% in a day, leading to $13 million in short liquidations and sparking claims of manipulation by large holders, according to . These incidents underscore the dangers of high-leverage trading and speculative activity, which can undermine trust in platforms. , a decentralized exchange, introduced JELLYJELLY contracts with leverage up to 5x just before the price surge, an action noted in , raising questions about its part in fostering volatile trading conditions in .

The U.S. government shutdown, which has interrupted programs like SNAP, further highlights the broader economic uncertainties influencing crypto usage, as covered by

. With more than 40 million Americans depending on federal aid, shrinking disposable income could reduce interest in alternative payment options such as crypto cards, NBC News notes. At the same time, political disagreements over budget priorities have limited lawmakers’ ability to address new crypto-related risks, .

Dupay’s shutdown is part of a larger pattern of crypto companies adjusting strategies or leaving the market as regulations struggle to keep pace with technological advances. Canada’s stablecoin rules, which are in line with U.S. efforts to regulate digital payments, reflect a worldwide trend toward curbing unregulated crypto activities, according to

. For now, the sector remains unsettled, with regulatory demands and market instability reshaping the environment for businesses seeking to integrate crypto with mainstream finance, as explored in .