Blockchain-based financial services company Paxos is pulling out of the Canadian market, citing regulatory uncertainty as the primary reason. The New York-based company has been offering its services in Canada since 2018 but has decided to wind down its operations in the country.
Paxos, which offers a range of financial services such as stablecoins and blockchain-based settlement solutions, said that the regulatory environment in Canada has been challenging for the company. In a statement, the company said it was difficult for them to operate in a regulatory environment where the rules constantly change.
The decision to withdraw from Canada follows similar moves made by other cryptocurrency companies. Last year, cryptocurrency exchange Kraken announced that it was pulling out of Canada due to regulatory concerns. The regulatory landscape for cryptocurrencies in Canada has been uncertain for some time, with several provinces and territories having their own rules and regulations.
Paxos Raises $300 Million Despite Canadian Exit
Despite the challenges faced by Paxos, the company remains optimistic about its future. It recently raised $300 million in a funding round led by Oak HC/FT, which valued the company at $2.4 billion. Paxos plans to use the funds to expand its operations in other markets.
Paxos CEO Charles Cascarilla said in a statement that the company remains committed to its mission of democratizing access to financial services through blockchain technology. He added that Paxos will continue working with regulators to ensure that its products and services comply with the rules and regulations of each jurisdiction in which it operates.
As the regulatory landscape for cryptocurrencies continues to evolve, whether more companies will follow in Paxos’ footsteps and withdraw from the Canadian market remains to be seen. However, for now, Paxos is focusing on expanding its operations in other markets where the regulatory environment is more favorable.