Paxful Suspends Marketplace
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.
"While we work through these issues, we have taken the most secure option and ask you to explore self-custody and trade elsewhere." Youssef said.
The CEO of the company has reassured customers that all their funds have been properly tracked, and Paxful Wallet will be available to enable customers to recover their funds. The company is proposing alternatives like Exodus Wallet and Muun Wallet, to help customers self-manage their funds. Paxful is also providing a seamless transition to other options for non-U.S. customers, including Noones, a P2P enterprise catering to the Global South, and Bitnob, which facilitates Bitcoin connection for Africans.
Paxful endorses Alternatives
Youssef has given his personal endorsement to Noones, citing their benefits such as reduced trading fees, an affordable wallet, a more lucrative affiliate program, a streamlined KYC process, and local dispute moderators. He also added that the company has a user-friendly TOS policy, with no incidents of locked accounts.
Why Paxful Decides To Suspend Its Marketplace
The decision of Paxful to suspend its marketplace coincides with the heightened regulatory oversight of the cryptocurrency sector, mainly in the United States. This move emphasizes the difficulties confronting the industry and highlights the significance of self-custody for investors. Additionally, it underscores the necessity for more secure and dependable P2P cryptocurrency exchanges that can endure regulatory pressures and ensure the security of customers' funds.
According to Youssef, the suspension of Paxful's marketplace is a result of the departure of key staff members and regulatory challenges facing the cryptocurrency industry. The company's decision to halt its operations serves as a cautionary tale for other cryptocurrency exchanges, highlighting the need to ensure regulatory compliance and to maintain a stable workforce to sustain operations.
Message From Paxful Official Website
A message from Ray
СEO of Paxful
Today, Paxful will be suspending its marketplace. We are not sure if it will come back.
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.
Solutions
The Paxful Wallet will be up for customers to retrieve their funds.
Right now, safeguarding customer funds is my biggest priority. Here is what I am doing:
All customer funds are all accounted for. Please withdraw them and if you can — self-custody. We recommend options such as Exodus Wallet and Muun Wallet.
We’re offering an easy migration to other options for non-U.S. users to platforms like Noones — a new P2P company dedicated to the Global South. All the things you do on Paxful you can do on Noones, including:
- Lower trading fees
- One of the cheapest wallets
- An affiliate program even more generous than Paxful’s program
- A more efficient KYC process
- Local dispute moderators
- A much friendlier TOS policy with no accounts being locked
I personally vouch for Noones, you can trust them
Bitnob — who makes it easy for Africans to connect with Bitcoin.
Ray Youssef
Paxful Founder and CEO"