Paxful Marketplace Shuts Down its Operations

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The regulatory challenges in the US have killed yet another crypto exchange, Paxful. The CEO announced the shutting down of operations.

Ray Youssef, the Chief Executive Officer of Paxful, announced that they are suspending the marketplace. He writes, “We are not sure if it will come back.”

The marketplace is facilitating the withdrawal of customers’ funds. 

Regulatory Challenges in US Consume Paxful

Youssef writes, “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.”

Crypto businesses are in the crosshairs of US regulators. Last week, the Securities and Exchange Commission (SEC) shut down the Beaxy exchange, alleging that it offered unregistered securities. Before that, it served the crypto exchange Coinbase with a Wells Notice.

The Commodity Futures Trading Commission (CFTC) sued Binance for breaking trading and derivative rules, resulting in withdrawals of $1.6 billion.

Paxful CEO a “Ray of Hope

The crypto influencer Kashif Raza wrote on Twitter, “When most of the exchanges and banks are struggling to provide 100% withdrawal. Paxful is allowing 100% withdrawal on EXIT.” He adds that Ray Youssef is a “Ray of Hope.”

Paxful was a peer-to-peer marketplace for trading cryptocurrency with around 11 million users.

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