- Paxful will temporarily suspend operations.
- The exchange’s CEO however stated that they are not sure if it will resume operations.
- This is the second peer-to-peer crypto-exchange to be shut down.
Ray Youssef, CEO of Paxful, has published a post on the exchange’s website stating that the peer-to-peer (P2P) exchange will be suspending its marketplace. Ray said that the exchange is not yet in a position to resume operations.
After LocalBitcoins in February’s announcement of its closure, this is the second P2P-based exchange to be closed in 2023.
Key staff departures and regulatory issues
The CEO mentioned key departures of staff and regulatory issues in the post as reasons for his decision:
“This will probably come as a big shock to many. Although I am unable to share the whole story, I can tell you that there have been some staff departures. The industry continues to face regulatory challenges, particularly in the peer-to–peer market, and the most 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.”
According to the CEO, the most important priority is protecting customer funds. He advised customers to withdraw whenever possible. He recommends that customers withdraw to self-custody wallets such as Exodus and Muun.
Ray also mentioned that Paxful will offer an easy migration option to other P2P alternative P2P services for non-US clients. Ray mentioned three P2P exchanges: Bitnob (Noones), Yellow Card (Yellow Card)
Customers will still be able to access their funds via the Paxful Wallet.