In a statement published this Tuesday (4), the cryptocurrency broker says full announced the closure of its activities. One reason cited is the growing regulatory challenges in the industry, especially in the US market.
Founded in 2015 by Ray Youssef and Artur Schaback, Paxful was one of the largest peer-to-peer (P2P) exchanges in the world. In addition to being active in the US and China, the brokerage was also present in Brazil.
Youssef says his focus is now on securing the funds of his former clients. “Please withdraw [suas criptomoedas] and if you can [faça] self-preservation”said the executive at the farewell.
The statement comes just days after brokerage firm Bittrex pulled out of the US, citing that it was “unfeasible to continue operating in this regulatory environment”.
Paxful closing announcement
While Localbitcoins shut down in February this year, another peer-to-peer market giant is following suit. In the statement, Paxful does not reveal the full story, citing regulatory challenges instead.
“While I can’t share the full story at this time, I can say that we have unfortunately had to leave a number of key employees”wrote Ray Youssef, founder of Paxful. “In addition, regulatory challenges for the industry continue to grow, especially in the peer-to-peer market and particularly in the US.”
“As we work on these issues, we choose the safest option and urge you to explore self-detention and trafficking elsewhere.”
According to Paxful’s Linkedin, the brokerage was headquartered in New York and had offices in Estonia, the United Kingdom, the Philippines, Dubai and Russia. In total, the company had more than 400 employees and 6 million customers.
Everything indicates that the recent lawsuits against several brokerage firms may have influenced the decision to close operations. For example, the CFTC sued Binance shortly after the SEC exchange fined Kraken and sent a notice to Coinbase. Furthermore, the Commission also sued Beaxy and its founders last week.
Paxful broker recommends self-custody and similar services
Ray Youssef asks his clients to withdraw their cryptocurrencies and also asks them to look for self-custody solutions, i.e. to store their funds without depending on third parties.
As options, Paxful recommended Muun and Exodus cryptocurrency wallets.
Finally, he recommended a new competing service as an option for those who need to conduct P2P negotiations. “Everything you do on Paxful, you can also do on Noones”, the executive noted. Other options presented were Bitnob and Yellow Card.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
