Paxos To End Its Canadian Operations on June 2nd
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Paxos To End Its Canadian Operations on June 2nd

Paxos announced it is preparing to leave Canada, and urged its Canadian users to withdraw their funds as soon as possible.
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According to an FAQ posted on Paxos’ website, the company will stop offering its services in Canada on June 2nd. The firm is urging its Canadian users to close their accounts as soon as they are able and announced it would automatically close all accounts without funds on May 9th. Paxos is the latest digital assets company to announce a departure from the North American country and its announcement comes just days after dYdX reached the same decision.

Paxos Announces its Departure From Canada

A page titled “Paxos Withdrawal from Canada” was posted to the company’s website earlier this week. It offers some insight into the firm’s planned departure from the North American country. According to the attached FAQ, Paxos’ operation will be wound down on June 2nd at the latest, and Canadian users are encouraged to close their accounts as soon as they are able.

Paxos, however, highlights that users who miss the withdrawal deadline will still have access to their money, but that the process would be lengthier and less convenient. The company also stated that it would keep a close eye on the situation in Canada and maintain communication with the OSC and that it may, at a future date, return to the country.

The digital assets company recently found itself under regulatory pressure in the US. In mid-February, it was ordered to stop issuing its Binance-branded BUSD stablecoin by US watchdogs. Around the same time, it received a Wells notice from the SEC warning that the token may be an unregistered security.

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The Recent Departees and Remainers in Canada

While Paxos made no mention of it in the FAQ, it is likely that its decision to leave the country comes as a result of the recently tightened requirements imposed on digital assets companies in the country. When it was introduced, the new undertaking caused some speculation on which firms would elect to remain in Canada, and which would abandon its market.

So far, the results have been mixed. Several major companies have reaffirmed their commitment to remaining in Canada. Earlier on Wednesday, the Winklevoss twins’ Gemini announced it had filed the pre-registration with the Ontario Securities Commission highlighting its determination to remain in the country.

Similarly, Kraken revealed two weeks it had done the same as Gemini, and characterized Canada as “a cornerstone of (its) global business”. On the other hand, the decentralized exchange dYdX announced it is departing the country and cited the current regulatory climate as the main reason for the decision.

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Which major cryptocurrency company will be the next to leave Canada due to the new undertaking? Let us know in the comments below.