Paxos, a cryptocurrency company known for issuing stablecoins and operating a crypto brokerage, is exiting the Canadian market entirely on June 2, the company confirmed in an official announcement.

"Beginning June 2nd, you will no longer be able to transact from your Paxos account, aside from withdrawing your funds," Paxos stated.

Strict Crypto Regulations in Canada

Though the company did not cite any reason behind the sudden move, the new Canadian laws for cryptocurrency businesses might have played a role. The Canadian Securities Administrators (CSA) issued an order in February mandating all crypto companies to register before the deadline of March 24. The Ontario Securities Commission (OSC) is another hardline state regulator in the country that requires regulatory authorization.

"Paxos will continue to assess its readiness to re-enter the Canadian market in cooperation with the OSC at a future date," the blockchain company added.

Prior to Paxos, a few other crypto exchanges, including OKX and dYdX, shuttered their Canadian operations. Additionally, the regulators banned a few non-compliant crypto exchanges in the country. However, most major exchanges like Gemini, Coinbase, and Kraken have taken the regulatory route to stay operational in Canada.

Paxos Asks Canadians to Withdraw Funds

Paxos detailed that it would close the Canadian accounts without any balance on May 9, while accounts with balances will have until June 2.

"If your Paxos account currently holds no funds, your account will be automatically closed on May 9th. If you maintain a balance in your Paxos account, we ask that you withdraw all balances from your account at your earliest convenience. Beginning June 2nd your account will be disabled. At that time, you will still be able to access and withdraw your funds; however, you will not have full access to Paxos' platform to initiate new trades," Paxos stated.

"You will still be able to access your funds following the deadline, but there will be additional [processes] and longer waiting periods."

New Canadian Crypto Crime Investigation Hub

Meanwhile, the police department of the Canadian city of Calgary recently partnered with the blockchain data platform, Chainalysis to combat cryptocurrency crimes. Moreover, the Calgary police created a new unit for crypto and blockchain investigations.

The Calgary police heightened its focus on crypto crimes after receiving reports of $13.9 million in losses to cryptocurrency-related crimes last year and an additional $3.2 million so far this year.

"That's because a lot of people think, and a lot of individuals and businesses feel, 'well, there's not a lot that can be done,'" said Calgary Police Chief Mark Neufeld.

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