Paxful, a P2P cryptocurrency exchange with a high volume of trades, stated that it has put a halt to its marketplace operations. The creator and CEO, Ray Youssef, has cited regulatory pressures on the industry and the departure of vital staff members as the causes of the disruption.
Youssef has recommended exploring self-custody and alternate trading options as the exchange works to address these challenges. In his statement, Youssef emphasized that they are taking the most secure approach to ensure the safety of users.
Youssef states that all of customer funds have been safely recorded and that Paxful Wallet will soon be accessible for them. Paxful recommended its customers to use other services like Exodus Wallet and Muun Wallet to take charge of their own funds.
He added that the company is providing smooth and simple migration options to alternative solutions for non-U.S. customers. These options include Noones, a new P2P firm reserved for the Global South, and Bitnob, which eases the process for Africans to engage with Bitcoin.
Youssef expresses his personal recommendation for Noones for several reasons: it has lower trading fees, it’s a generally more affordable wallet, it has a generously rewarding affiliate program, a better organized KYC process, local moderators to resolve disputes, and a more accommodating TOS policy that does not involve account lockouts.
This news of Paxful’s suspension came at a time when regulatory bodies have intensified their auditing of the sector, especially in the U.S. This development sheds light on the complex challenges that the industry is struggling with, underlining the significance of self-custody for investors.
Furthermore, it highlights the urgent requirement for trustworthy and secure peer-to-peer cryptocurrency exchanges that can withstand impending regulatory pressures and safeguard customer assets.
