Key Points:

  • Paxful has suspended its marketplace, and it is unclear when it will reopen.

  • The company’s CEO said that he was unable to provide any information regarding the grounds for the suspension decision.

  • The suspension of Paxful comes amid increased regulatory scrutiny.

Paxful, one of the world’s biggest peer-to-peer (P2P) cryptocurrency exchanges by volume, has announced that its marketplace has been suspended.

Ray Youssef, the company’s founder and CEO, made the news, citing important employee departures and regulatory obstacles for the business as the reasons for the decision. Youssef said in a statement:

“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.”

The Paxful Wallet will remain operational to enable consumers to collect their money, which is “fully accounted for,” according to the message. After withdrawing, the notification urged users to self-custody and recommended Exodus Wallet and Muun Wallet as secure solutions.

For non-US customers, the firm is also providing a simple transition to alternative possibilities, such as Noones, a new P2P startup devoted to the Global South, and Bitnob, which allows Africans to connect with Bitcoin.

Paxful’s suspension comes amid increased regulatory scrutiny of the cryptocurrency sector, particularly in the United States. Paxful’s decision illustrates the industry’s issues as well as the relevance of self-custody for investors.

It also emphasizes the need for more secure and dependable peer-to-peer cryptocurrency exchanges that can resist regulatory demands while protecting clients’ assets.

According to Youssef, the key aim is to keep client monies secure. Paxos provided non-US customers with simple migration alternatives to other peer-to-peer platforms to guarantee they could collect their cash swiftly and securely.

Previously, the CEO said that he would repay Paxful subscribers that lost money through Celsius Earn.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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