Paxos, a fintech firm providing blockchain-based solutions for the global financial industry, has declared its intention to exit the Canadian market.
Paxos has notified its clients that they will no longer be able to conduct transactions through their Paxos accounts starting from June 2, with the exception of withdrawing their funds.
Paxos has made this decision as it evaluates its ability to return to the Canadian market at a later date in collaboration with the Ontario Securities Commission (OSC), according to the announcement.
Paxos has assured its customers that their funds will be secure and protected by Paxos' terms and conditions, even after their accounts are closed. However, Paxos has requested that customers withdraw their balances as soon as possible. Accounts with no funds will be automatically closed on May 9.
Customers who have any balance in their Paxos account will still have the ability to withdraw their funds after June 2, but they will not be able to conduct new trades on Paxos' platform.
Paxos' call to withdraw from the Canadian market coincides with Canada's recent efforts to strengthen regulations on crypto platforms. On February 22, the Canadian Securities Administrators (CSA) issued a notice requiring crypto exchanges to enter into new legally binding agreements while awaiting registration with the regulatory body.
The updated agreement includes a provision that prohibits the purchase or deposit of Value Referenced Crypto Assets, also known as stablecoins, through crypto contracts without written permission from the CSA.
In recent months, Paxos is not the only company to leave the Canadian market. On March 20, OKX notified its Canadian users via email that it would no longer provide services or accept new accounts in Canada, citing new regulations.
On April 7, dYdX, a crypto derivatives exchange, also announced its decision to end services in Canada, starting by ceasing to onboard new users in the nation. On April 14, dYdX will move all current Canadian users to "close-only mode," permitting only withdrawals.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash