The peer-to-peer (P2P) platform announced it will no longer function due to the loss of critical employees and regulatory challenges. “It will be a big shock to many,” the CEO said.
Paxful, the global peer-to-peer (P2P) platform that connects buyers with sellers of cryptocurrencies and allows trading Bitcoin since its launch in 2015, it announced its closure this Tuesday, April 4.
The market made it known through an official statement. “This will probably be a big shock to many,” said the company founder and CEO, Ray Youssef.
“While I can’t share the full story right now, I can say that we have unfortunately had some key personnel departures. Also, regulatory challenges for the industry continue to grow, especially in the peer-to-peer market and most strongly in the United States”added the head of the platform.
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The reasons that lead to the closure are, a priori, two: the loss of key employees and the regulatory challenges, since cryptocurrencies are not considered a means of payment, they are not backed by a central bank or other public authorities and are not covered by customer protection mechanisms.
What is the future of Paxful
According to Youssef, Paxful Wallet will continue to function so that clients can recover their funds. Users are encouraged to use other service providerssuch as the Bitcoin payment company Bitnob and the newly created P2P marketplace Noones.
Through Twitter Spaces, the CEO of the platform admitted the existence of flaws in the security of customer funds after a lawsuit from the co-founder, Artur Schaback. “I could not guarantee the security of the platform. That’s why this had to go down,” she admitted.
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In December, the P2P market had already suspended transactions with ETH and, since then, the platform trades exclusively with Bitcoin.
Taking stock, Youssef noted that Paxful ultimately succeeded as it fostered Bitcoin adoption in West Africa and other areas of the Global South. According to Coin Dance, transaction volume on Paxful totaled around $35 million last week.
Source: Ambito
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