In a press release Sunday, Global Affairs confirmed all operations would be suspended effective immediately.
Canada will also be "evaluating the status" of Venezuelan diplomats to Canada appointed by President Nicolas Maduro.
Canada is part of a group of countries who believe Maduro's re-election last year was fraudulent. Canadian officials have called for him to step down so opposition leader Juan Guaido, who several dozen countries now recognize as Venezuela's legitimate interim leader, can take over.
"As Venezuela slides deeper into dictatorship, and as Venezuelans continue to suffer at the hands of the illegitimate Maduro regime, the regime has taken steps to limit the ability of foreign embassies to function in Venezuela," Freeland's statement said.
News that embassy operations were being put on hold came a day before Freeland was set to meet in New York with other members of the Lima Group — a bloc that includes more than a dozen Latin American countries opposing Maduro.
"Unfortunately, at the end of this month, Canadian diplomats in Venezuela will no longer be in a position to obtain diplomatic accreditation under the Maduro regime, and their visas will expire. Therefore, we are left with no choice but to temporarily suspend our operations at the Embassy of Canada to Venezuela."
The U.S. withdrew its remaining embassy staff from Venezuela in March, citing a deteriorating situation.
Venezuela is in the throes of a historic political and social crisis marked by shortages of food and medicine that has driven three million people to flee the country in recent years.
Foreign Affairs Minister Chrystia Freeland speaks with media following Question Period on Parliament Hill, Friday May 31, 2019 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Freeland said Canada will still provide consular services through its embassy in neighbouring Colombia.
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The Canadian embassy in Caracas, Venezuela, is shown in a 2017 file photo. The Canadian government is shutting down the embassy effective immediately.
Freeland said that through its work with the Lima Group, the government will continue to advocate for democracy in the South American nation.
Canada is shutting down its embassy in crisis-stricken Venezuela because diplomats will no longer be able to obtain credentials, the Canadian government says.
Instead, the Lima Group backed opposition leader Juan Guaido, who declared himself Venezuelas interim leader at the beginning of this year.
Foreign Affairs Minister Chrystia Freeland said Sunday that the Nicolas Maduro regime has taken action to prevent foreign embassies from functioning in Venezuela, “particularly those advocating for the restoration of democracy.”
“Therefore, we are left with no choice but to temporarily suspend our operations at the Embassy of Canada to Venezuela, effective immediately,” she said.
Canada has imposed sanctions on more than 100 officials in Maduros regime in a bid to hold them accountable.
Canada is among many western nations supporting opposition leader Juan Guaido’s claim to the country’s leadership. He declared himself interim president in January after Maduro’s re-election was condemned as illegitimate.
The country, which was already facing a mass exodus due to an economic crisis, has plunged into chaos since.
The Canadian government has advised against travel to Venezuela for months. Canadians in Venezuela can receive consular assistance at the embassy in Colombia or by contacting Global Affairs Canada.