- Paxful will temporarily halt 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 shut down.
Paxful CEO Ray Youssef has published a post on the exchange’s website stating that the peer-to-peer (P2P) exchange will be suspending its marketplace. Ray went ahead to state that they are not sure if the exchange will resume operations.
This is the second popular P2P exchange to shut down in 2023 after LocalBitcoins announced shutting down in February.
Key staff departures and regulatory challenges
The CEO cited key staff departures and regulatory challenges in the post saying:
“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 CEO said that the biggest priority at the moment is safeguarding customer funds and advised customers to withdraw where possible. He has gone ahead to recommend withdrawing to self-custody wallets like Exodus and Muun.
Ray also stated that Paxful will be offering an easy migration to other P2P alternatives for non-US customers. He highlighted three P2P exchanges namely Noones, Bitnob and Yellow Card.
The Paxful Wallet will however remain operational for customers to retrieve their funds.