Bittrex and $NEXO are already done in the US, both citing regulatory pressure and uncertainty; a third exchange joins that list.
Peer-2-Peer $BTC marketplace, Paxful is closing up shop not just in the U.S., but the entire business.
Founder and CEO Ray Youssef said:
Today (April 4, 2023), Paxful will be suspending its marketplace. We are not sure if it will come back.
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.
Solutions
The Paxful Wallet will be up for customers to retrieve their funds.
Right now, safeguarding customer funds is my biggest priority. Here is what I am doing:
- All customer funds are all accounted for. Please withdraw them and if you can — self-custody. We recommend options such as Exodus Wallet and Muun Wallet.
- We’re offering an easy migration to other options for non-U.S. users to platforms like Noones — a new P2P company dedicated to the Global South. All the things you do on Paxful you can do on Noones, including:
- Lower trading fees
- One of the cheapest wallets
- An affiliate program even more generous than Paxful’s program
- A more efficient KYC process
- Local dispute moderators
- A much friendlier TOS policy with no accounts being locked
- I personally vouch for Noones, you can trust them
- Bitnob — who makes it easy for Africans to connect with Bitcoin.
Ray Youssef
Paxful Founder and CEO
Paxful is latest, but probably not the last business that will exit the space as governments around the globe continue to slowly strangle the nascent crypto industry.