Paxos set to exit Canadian market after dYdX, OKX

Stablecoin issuer Paxos is the latest company to withdraw its services from the Canadian market while stating that it may return to Canada following possible cooperation with regulators.

Paxos has asked its users in Canada to withdraw their funds from the platform at their “earliest convenience,” adding that customers will not be able to carry out transactions on their accounts from June 2, 2023. However, any Paxos account without funds will be automatically closed on May 9, 2023, as stated on the company’s website. 

The stablecoin issuer also said that customers who miss the June 2 deadline will still be able to access their funds, but will have to go through more processes and wait longer to get their money. 

While Paxos did not state the exact reason for its departure, the company said it “will continue to assess its readiness to re-enter the Canadian market in cooperation with the OSC at a future date.” OKX and dYdX also withdrew their services from the country amid its strict regulatory policy. 

In February 2023, the Canadian Securities Administrators (CSA) issued a notice asking cryptocurrency exchanges willing to operate in Canada will have to make “enhanced investor protection commitments,” which will come in the form of “an enhanced pre-registration undertaking” while working on their registration process.

Crypto companies unable or unwilling to make such a provision will have to off-board Canadian users and prevent them from accessing their services.