Paxful, a reputable P2P cryptocurrency exchange, has suspended its operations. The exchange was a prominent player in the market due to its high trading volume.
The decision was announced by the company’s founder and CEO, Ray Youssef, who attributed the suspension to regulatory challenges in the industry and the departure of key personnel.
The announcement was made via the official website of Paxful. In his official statement, Youssef emphasized the importance of safeguarding user security and recommended exploring self-custody alternatives and alternative trading platforms during the current uncertain period.
The statement read,
This will probably come as a big shock to many. While I cannot share the full story now, I can say that we unfortunately have had some key staff departures. Also, regulatory challenges for the industry continue to grow, especially in the peer-to-peer market and most heavily in the U.S. While we work through these issues, we have taken the most secure option and ask you to explore self-custody and trade elsewhere.
Customers of the P2P exchange had received a message from the founder, who also stated that Paxful might not resume operations again.
All Users’ Funds Are Accounted for, Paxful Ensures
Youssef has reassured users that all their funds are secure and accounted for and that the Paxful Wallet will be available for customers to retrieve their funds safely. Ray has recommended self-custody options such as Exodus Wallet and Muun Wallet to simplify this process.
For non-U.S. users, Paxful is offering an effortless migration to other platforms, including Noones, a new P2P exchange operating in Global South, and Bitnob, a platform that will carry out easy access to Bitcoin for Africans.
According to Ray Youssef, Noones offers lower trading fees, affordable wallets, a superior affiliate program to Paxful, and an efficient KYC process.
This has depicted the exchange’s commitment to the security and convenience of its users during a period of ambiguity. Youssef quoted:
The Paxful Wallet will be up for customers to retrieve their funds. Right now, safeguarding customer funds is my biggest priority.
Increased Regulatory Challenges In The US
With the recent suspension of Paxful’s marketplace, regulatory scrutiny over the cryptocurrency industry, especially in the U.S., has increased. This highlights the significance of self-custody for investors and emphasizes the necessity of having trustworthy and secure P2P cryptocurrency exchanges that can deal with regulatory challenges while safeguarding customers’ funds.
In February, LocalBitcoins, a competitor of Paxful and a company with a decade of experience in the cryptocurrency exchange market, announced its decision to shut down operations.
The company cited market conditions as an important reason for its decision to cease operations. In response to this development, Ray Youssef sent a message welcoming all users of LocalBitcoins to Paxful.