Paxful P2P exchange closes
Paxful has been one of the most popular trading places of its kind. Now the P2P crypto exchange suddenly stops operating. Clients are supposed to withdraw their funds. According to the operators, it is still uncertain whether the marketplace will ever be active again.
P2P crypto exchange shuts down
In 2015, Ray Youssef and Artur Schaback founded the P2P crypto exchange Paxful. Until recently, it was one of the most popular representatives of its kind. Users were able to trade Bitcoin, Ethereum and Tether with each other and thus dispense with the use of a centralized marketplace.
P2P cryptocurrency exchanges like Paxful are particularly popular with users who are prohibited from trading cryptocurrencies by state law or who do not want to reveal their identity for reasons of privacy.
Cryptocurrency trading on Paxful has now stopped. CEO Youssef told business partners in a message that Paxful could no longer continue operations due to the layoff of several key employees and mounting regulatory issues.
Instead, he asks, users should continue trading through other platforms. Users flee to the similar portals Agoradesk, HodlHodl, Peach Bitcoin or Bisq. Youssef himself recommends the platforms Noones and Bitnob.
“Paxful is halting its marketplace and we’re not sure it will ever come back.” – Ray Youssef
According to Youssef, there are other problems. However, he writes, he cannot go into more detail about these. Meanwhile, users are encouraged to withdraw their funds from Paxful as soon as possible. Some users stuck in unresolved conflicts do not yet have access to their attachments.
As a result, Paxful is ceasing operations
The exact background of the sudden stop is unknown. However, suspicions suggest that Paxful is in a legal battle. Apparently, regulators could want to shut down the marketplace.
Circumstances suggest that Paxful has also become a target of the recent anti-crypto campaign by several US agencies. The SEC has been increasingly attacking the crypto industry since February.
So far, centralized crypto exchanges such as Binance have been particularly affected. Paxful is registered in the US and has its headquarters in New York. Just recently, competitor LocalBitcoins halted its operations.
The Finland-based firm spooked its customers with extensive KYC measures prompted by a demand from the legislature.
While centralized crypto exchanges like Binance only allow trading between fiat and cryptocurrencies after users have successfully identified themselves, similar trades can be done completely anonymously on P2P exchanges.
Authorities perceive this offer as critical. Users can use the portals to purchase attachments that they can send around the world without governments being able to identify them. Both classic payment methods and payment via vouchers are used for shopping. These protect the privacy of users particularly well.
