The exchange cites staff departures and regulatory challenges for the suspension, saying they are “not sure it will come back.”
Paxful, one of the world’s largest peer-to-peer (P2P) cryptocurrency exchanges by volume, has announcement the suspension of its market. The announcement was made by the company’s founder and CEO, Ray Youssef, who cited key personnel departures and regulatory challenges for the industry as reasons for the decision. In a statement, Youssef said, “While we work through these issues, we have chosen the safest option and ask that you explore self-custody and trading elsewhere.”
According to Youssef, all customer funds are accounted for and the Paxful wallet will allow customers to recover their funds. To make the process easier, Paxful recommends options like Exodus Wallet and Muun Wallet for customers to hold their funds on their own. The company also offers easy migration to other options for non-US users, including Noones, a new P2P company dedicated to the Global South, and bitnobwhich makes it easy for Africans to connect to Bitcoin.
Youssef personally vouches for Noones, which offers lower transaction fees, a cheaper wallet, a “more generous affiliate program than Paxful’s program, a more efficient KYC process, local dispute moderators” and a “more user-friendly TOS policy without account lockout”.
News of Paxful’s suspension comes amid growing regulatory scrutiny of the cryptocurrency industry, particularly in the United States. Paxful’s decision highlights the challenges facing the industry and the importance of self-custody for investors. It also underscores the need for more secure and reliable P2P cryptocurrency exchanges that can withstand regulatory pressures and keep client funds safe.