Yet another crypto-related firm is turning its back to Canada.
Stablecoin issuer Paxos has announced plans to exit the Canadian crypto market due to regulatory uncertainty, with potential re-entry relying on cooperation with the Ontario Securities Commission (OSC).
In a statement released by Paxos, the company informed its Canadian customers that from June 2nd, they would no longer be able to conduct transactions using their Paxos accounts. However, after this date, customers will still be able to withdraw their funds.
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According to the announcement, Paxos is currently assessing the feasibility of re-entering the Canadian market at a later date.
Paxos assured customers that their funds would "remain safely" in their accounts, protected by the company's terms and conditions. Automatic account closures will occur for customers without funds on May 9th.
Your funds remain safely in your account and are reflected on your account balance and protected by our Terms and Conditions; however, we ask that you withdraw all balances from your account at your earliest convenience.
While withdrawal restrictions will come into effect on June 2nd, customers with balances in their Paxos accounts will still be able to access and withdraw their funds.
However, it is worth noting that these customers will not have full access to the Paxos platform and will not be able to start new trades.
In order to facilitate withdrawals, Paxos recommended customers "wire fiat balance to bank accounts linked to itBit account that is under name or withdraw digital assets held in account to an external wallet."
Paxos' decision to withdraw from the Canadian market underscores the ongoing difficulties and uncertainties faced by fintech companies as they navigate an ever-changing regulatory environment.
At the end of March, cryptocurrency exchange OKX also revealed plans to stop offering its services in Canada, citing stringent regulatory directives. On the other hand, at the beginning of April, crypto exchange Kraken reaffirmed its commitment to comply with new Canadian consumer protection rules.
