The exchange cites staff departures and regulatory challenges for the suspension, saying they are “unsure if it will return.”
Paxful, one of the world’s largest peer-to-peer (P2P) cryptocurrency exchanges by volume, has Announced the suspension of its market. The announcement was made by the company’s founder and CEO, Ray Youssef, who cited the departures of key personnel and regulatory challenges for the industry as the reasons behind the decision. In a statement, Youssef said: “While we work through these issues, we have taken the safest option and ask that you explore self-custody and trade elsewhere.”
According to Youssef, all client funds are accounted for and the Paxful Wallet will be available for clients to retrieve their funds. To make the process easier, Paxful recommends options like Exodus Wallet and Muun Wallet for customers to keep their funds safe. The company also offers easy migration to other options for users outside the US, including Noones, a P2P startup dedicated to the Global South, and bitnobmaking it easier for Africans to connect with Bitcoin.
Youssef personally vouches for Noones, which offers lower trading fees, a cheaper wallet, a “more generous affiliate program than Paxful’s program, a more efficient KYC process, local dispute moderators” and a “friendlier TOS policy.” No locked accounts.”
News of Paxful’s suspension comes amid increasing regulatory scrutiny of the cryptocurrency industry, particularly in the US. Paxful’s move highlights 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 ensure the safety of client funds.
