Paxos has become the latest digital asset firm to announce its exit from the Canadian market as regulators become increasingly tough on the sector.
In an announcement on its website, the company called on its customers to withdraw their funds “at your earliest convenience.” Paxos will shut down unfunded accounts by May 9 and disable all trading by June 2. However, users can still withdraw their funds after this deadline.
“Paxos has determined it will no longer support customers in Canada moving forward. Given your Paxos account remains unfunded, your account will be disabled on May 9th, 2023,” read an email sent to some users.
Founded in 2012 as itBit exchange, Paxos has expanded its services to include a digital asset brokerage, securities settlement, commodities settlement, and PAX Gold, a gold-backed digital token. Paxos has also ventured into the issuance of stablecoins and wholly owns and manages BUSD, the Binance stablecoin recently caught up in a probe in the United States.
While Paxos didn’t explicitly blame increasing regulations for its exit from the Canadian market, sources say the company has left the country due to changes in crypto regulations.
“Paxos is focused on serving enterprise clients and their growth into the digital assets ecosystem. While our platform will no longer support Canadian customers in the immediate term, we will reassess our presence in this region in partnership with our clients’ evolving needs,” a Paxos spokesperson said.
On its website, the company stated that it will reassess its readiness to re-enter the Canadian digital asset market in cooperation with the Ontario Securities Commission (OSC).