The exchange cites staff departures and regulatory challenges for the suspension, saying they’re “not sure if it will come back.”
Paxful, one of the world’s largest peer-to-peer (P2P) cryptocurrency exchanges by volume, has announced the suspension of its marketplace. The announcement was made by the company’s founder and CEO, Ray Youssef, who cited key staff departures 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 most secure option and ask you to explore self-custody and trade elsewhere.”
According to Youssef, all customer funds are accounted for, and the Paxful Wallet will be up for customers to retrieve their funds. To facilitate the process, Paxful is recommending options such as Exodus Wallet and Muun Wallet for customers to self-custody their funds. The company is also offering an easy migration to other options for non-U.S. users, including Noones, a new P2P company dedicated to the Global South, and Bitnob, which makes it easy 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 with no accounts being locked.”
The news of Paxful’s suspension comes amid growing regulatory scrutiny of the cryptocurrency industry, particularly in the U.S. Paxful’s move 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 ensure the safety of customers’ funds.