Blockchain-based Fintech Firm Paxos Announces Exiting Canada

• The firm has requested that users take out any remaining funds at the earliest.
• The move comes in light of Canada’s recent efforts to crack down on crypto sector.

Paxos, a fintech firm that provides blockchain-based solutions for the international financial sector, has stated that it would no longer be operating in Canada. As of Tuesday, June 2, clients will no longer be able to do anything in their Paxos accounts but withdraw money, according to a statement provided by the firm.

In addition, Paxos guaranteed in their statement that their clients’ monies would “remain safely” in their accounts and be reflected on their balances. But the firm has requested that users take out any remaining funds at their “earliest convenience.”  On May 9 their accounts will be canceled automatically if there are no money in them.

Crack Down on Crypto Sector

However, after June 2, users who still have money in their Paxos account may access and withdraw that money. However, they will be limited in their ability to use Paxos’s trading platform to make fresh transactions.

In light of Canada’s recent efforts to crack down on the cryptocurrency sector, Paxos has decided to leave the Canadian market.  The Canadian Securities Administrators (CSA) issued a notice on February 22 requiring cryptocurrency exchanges to engage in fresh legally binding agreements before they could apply for registration.

Not only has Paxos left the Canadian market in recent months, but so have a number of other companies. As on March 24, 2023, OKX no longer offers services or enables customers to establish new accounts in Canada due to new rules, the cryptocurrency exchange said via email to Canadian subscribers on March 20. The cryptocurrency derivatives exchange dYdX stated on April 7 that it will be discontinuing operations in Canada, beginning with the suspension of signups from that nation.