Crypto Updates

Crypto Community Reacts as P2P Platform Paxful Shuts Down


Reactions have been pouring in
from the cryptocurrency community after Paxful, a peer-to-peer (P2P) platform for
trading Bitcoin (BTC), announced on Wednesday that it “will be suspending its marketplace.”
Paxful Founder and CEO, Ray Youssef, in a blog post published on Wednesday on
platform’s website said the platform was closing down due to key staff exit and
regulatory challenges.

“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.,” Youssef explained.

Yousef noted that he was not
sure if the platform will be restored after it is shut down. The Paxful Founder
urged customers to withdraw their funds and self-custody, noting that “all
customer funds are all accounted for”.

The Chief Executive also noted that the platform is offering its non-US users “easy migration” to other
platforms such as Noones, which is a newly-established P2P platform dedicated
to the Global South.

In December, Paxful suspended
the trading on Ether on its platform, permitting only BTC since then. The P2P
platform cited the Ethereum Merge, the switch of the Ethereum blockchain from a
proof-of-work to proof-of-stock, as the reasons for the suspension.

Paxful was launched in the
United States in 2014 but focused its services in Africa, a region that has one of the highest cryptocurrency adoption in the world. The P2P BTC trading platform’s
closure comes two months after its Finland-based rival, LocalBitcoins, also shut down, citing “very cold crypto winter.”

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