Paxos set to withdraw from Canada amid regulatory uncertainty

Paxos, a fintech institution that offers blockchain-based solutions for the planetary fiscal industry, has announced its determination to retreat from the Canadian Market. 

The institution released a statement connected its website informing customers that they volition nary longer beryllium capable to transact from their Paxos accounts starting from June 2nd, but for withdrawing their funds. The determination comes arsenic Paxos continues to measure “its readiness to re-enter the Canadian marketplace successful practice with the Ontario Securities Commission (OSC) astatine a aboriginal date.”

The announcement besides stated that customers' funds would "remain safely" successful their accounts and volition beryllium reflected connected their relationship balance, protected by Paxos' presumption and conditions. However, the institution has urged customers to retreat each balances from their accounts astatine their "earliest convenience."  Customers who don't person immoderate funds successful their accounts volition person their accounts automatically closed connected May 9.

On the different hand, customers who support a equilibrium successful their Paxos relationship volition inactive beryllium capable to entree and retreat their funds aft June 2. However, they volition not person afloat entree to Paxos' level to initiate caller trades. Paxos has advised customers to ligament their fiat balances to slope accounts linked to their "itBit account" that is nether their name, oregon transportation integer assets held successful their accounts to outer wallets.

Related: New Canadian rules for crypto trading platforms permission small country for stablecoins

Paxos' determination to exit the Canadian marketplace comes astatine a clip erstwhile Canada has been tightening its regulations connected cryptocurrency platforms successful caller months. On February 22, the Canadian Securities Administrators (CSA) released a notice that mandates crypto exchanges to participate into caller legally binding agreements arsenic they hold for registration with the regulatory body. The updated undertaking includes a clause that forbids buying oregon depositing Value Referenced Crypto Assets, oregon stablecoins, via crypto contracts without written authorization from the CSA.

Paxos is not the lone institution to exit the Canadian marketplace successful caller months. On March 20, cryptocurrency exchange OKX informed Canadian users via email that the steadfast “will nary longer supply services oregon let users to unfastened caller accounts successful Canada starting connected Mar. 24, 2023, 12:00 AM EST,” citing “new regulations.” 

On April 7, cryptocurrency derivatives speech dYdX announced plans to extremity services successful Canada, starting with halting the onboarding of caller users located successful the country. On April 14, the speech volition determination each existing Canadian users to “close-only mode,” allowing them to lone retreat funds. 

The caller exits depicts a increasing inclination of companies exiting Canada owed to regulatory concerns.