The email stated that payments to gambling merchants would no longer be processed from January 2, while payments from merchants will be halted on January 31.
The firm said that it will be notifying active gamblers of the decision next week and will communicate this to its broader Canadian customer base.
Skrill advised customers to “liaise with appropriate departments within your business to communicate this development and to articulate any impact across your organisation”.
The processor said it had opted to pull out of the market after it had “reviewed its operations”.
Skrill did not make any further comment on its decision, but said it “remains committed” to partnering Canadian customers in order to support their future business plans.