Paxos, a global fintech company that provides blockchain-based solutions for the financial industry has recently announced its decision to withdraw operations from the Canadian Market. However, the company assures that all funds remain safe in the Paxos accounts. However, it has advised its customers to withdraw their respective account balances at the earliest. According to the statement released by the company, customers will no longer be able to make transactions using their Paxos accounts from June 2, 2023, onwards, except for withdrawing funds.
The funds will be protected in the accounts by Paxos’ terms and conditions and will be reflected on the customer’s account balances too. Alongside this, all the customer accounts with no funds will be closed automatically on May 9. However, others will balance in the accounts and will be able to withdraw them till June 2. To facilitate the easy withdrawal of the funds, Paxos has advised customers to wire their fiat balances to bank accounts that are linked itBit account.
Paxo’s decision to exit the Canadian market came while the country has been focusing on tightening its regulations on Cryptocurrency platforms. As recently Canadian Securities Administrators (CSA) released a notice that makes it mandatory for crypto exchanges to enter into legally – binding agreements and update their undertaking clauses.
Paxos is not the first company to exit the Canadian market recently. Many companies have decided to quit the Canadian cryptocurrency market due to its tightening policies. On April 7, 2023, dYdX, the cryptocurrency derivatives exchange also announced its plans to end services in Canada and put restrictions on onboarding news users in the country. However, Paxos prefer assessing its readiness to re-enter the Canadian market in cooperation with Ontario Securities Commission (OSC) in the future.