Paxful, one of the largest peer-to-peer (P2P) cryptocurrency exchanges in the world in terms of volume, has announced the suspension of its market.
The company’s founder and CEO, Ray Youssef, made the news and cited major personnel departures and regulatory difficulties for the sector as justifications.
Youssef issued a statement that read, “We have chosen the most secure approach and advise you to consider self-custody and trade elsewhere while we work through these challenges.”
Youssef claims that all customer monies are there and correct, and that consumers can access their money by using the Paxful Wallet.
To facilitate the process, Paxful is recommending options such as Exodus Wallet and Muun Wallet for customers to self-custody their funds.
The company is also offering an easy migration to other options for non-U.S. users, including Noones, a new P2P company dedicated to the Global South, and Bitnob, which makes it easy for Africans to connect with Bitcoin.
Youssef personally vouches for Noones, which offers lower trading fees, 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.”
The news of Paxful’s suspension comes amid growing regulatory scrutiny of the cryptocurrency industry, particularly in the U.S. Paxful’s move highlights the challenges facing the industry and the importance of self-custody for investors.
It also underscores the need for more secure and reliable P2P cryptocurrency exchanges that can withstand regulatory pressures and ensure the safety of customers’ funds.
