Paxful, a prominent bitcoin exchange platform operating through peer-to-peer transactions, recently made a surprising announcement that it would be discontinuing its services.
The decision was reportedly prompted by a combination of factors, including regulatory pressure and the departure of key personnel.
In a statement, Paxful CEO Ray Youssef indicated that the company’s management lacked confidence in its ability to restore the platform.
Despite this setback, Youssef assured users that the Paxful Wallet would remain operational so that they could withdraw their funds.
He acknowledged that the decision might come as a shock to many and noted that he was unable to provide further details at this time.
Youssef attributed the company’s difficulties in part to the increasingly stringent regulatory environment facing the cryptocurrency industry, particularly in the P2P market and the United States.
Paxful is currently exploring various options to address these challenges, but in the meantime, it is offering users several ways to withdraw their funds, including transferring them to other peer-to-peer platforms or storing them in their own cold or hardware wallets.
Interestingly, LocalBitcoins, another well-established P2P cryptocurrency platform, also announced its closure in early February, while Paxful users lost their ability to trade ETH at the end of last year.