2 months ago 2 min read

Paxos Is Planning To Leave Canada

paxos exit candian market-close only mode

Paxos informed its customers that their assets would "remain safely" in their accounts, but recommended them to withdraw all sums as soon as possible.

Paxos, a fintech firm that provides blockchain-based solutions to the global financial industry, has declared its intention to exit the Canadian market.

Customers will be unable to transact from their Paxos accounts, with the exception of withdrawing funds, beginning June 2nd, a statement posted on the company's website. The action comes as Paxos continues to review "its readiness to re-enter the Canadian market in cooperation with the Ontario Securities Commission (OSC) at a future date."

Customers' monies, The notification, would "remain safely" in their accounts and will be shown on their account balance, protected by Paxos' terms and conditions. Customers who do not have any funds in their accounts will have their accounts terminated automatically on May 9 if they do not withdraw all balances from their accounts at their "earliest convenience."

Customers who keep a balance in their Paxos account, on the other hand, will be able to access and withdraw their funds after June 2. They will not, however, have full access to Paxos' platform to initiate new deals. Customers should wire their fiat balances to bank accounts linked to their "itBit account" or transfer digital assets kept in their accounts to external wallets, according to Paxos.

Paxos' decision to depart the Canadian market comes at a time when the country's rules on cryptocurrency platforms have been tightening in recent months. The Canadian Securities Administrators (CSA) issued a notification on February 22 requiring crypto exchanges to engage into new legally binding agreements while awaiting registration with the regulatory body. The amended undertaking includes a provision prohibiting the purchase or deposit of Value Referenced Crypto Assets, or stablecoins, through crypto contracts without prior written clearance from the CSA.

Paxos is hardly the only company that have left Canada in recent months. OKX notified Canadian users via email on March 20 that the company "will no longer provide services or allow users to open new accounts in Canada beginning on March 24, 2023, 12:00 AM EST," citing "new regulations."

On April 7, cryptocurrency derivatives exchange dYdX announced plans to discontinue services in Canada, beginning with the onboarding of new Canadian users. On April 14, all existing Canadian users will be moved to "close-only mode," allowing them to only withdraw funds.

Recent exits show a growing trend of corporations leaving Canada due to regulatory concerns.

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