Paxful declares its marketplace suspended

Paxful, one of the world’s largest peer-to-peer (P2P) cryptocurrency exchanges by volume, has declared that its marketplace has been suspended. Ray Youssef, the company’s founder and CEO, made the news, citing key staff departures and regulatory challenges for the industry as the reasons for the decision. Youssef said in a statement, “While we work through these issues, we have taken the most secure option and ask you to consider self-custody and trading elsewhere.”

All client funds, according to Youssef, have been accounted for, and the Paxful Wallet will be available for customers to retrieve their funds. Paxful recommends Exodus Wallet and Muun Wallet for customers to self-custody their funds to make the procedure easier. For non-US users, the company is also providing an easy transition to other options, such as Noones, a new P2P company devoted to the Global South, and Bitnob, which allows Africans to connect with Bitcoin.

Noones, according to Youssef, has lower trading costs, 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.”

Paxful’s suspension comes amid increased regulatory scrutiny of the cryptocurrency sector, especially in the United States. Paxful’s decision highlights the industry’s challenges as well as the significance of self-custody for investors. It also emphasizes the need for more secure and dependable peer-to-peer cryptocurrency exchanges that can endure regulatory pressures while protecting customers’ funds.