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End of virtual currency trading service
Ray Youssef, CEO of peer-to-peer (P2P) cryptocurrency exchange Paxful, announced today that the company will be shutting down its trading services.
Regarding the reason for the termination, he explained that he could not share everything at this time, and that several important employees had retired. Another reason, he cited, was the growing regulatory challenge. Regarding regulations, regulations on the P2P market in particular have an impact. The biggest problem, he said, was U.S. regulation.
He also explained that it is undecided whether the service will be resumed. He said he chose to end the service as the safest option under the current circumstances. The announcement did not state a specific schedule for the future, such as the date and time of service termination, but explained that the protection of customer assets will be the top priority.
Paxful was founded in 2015 by Youssef and Artur Schaback. The company’s mission was to provide equitable access to financial services for people around the world. According to its official website, the company has four offices around the world.
In December last year, the company announced the delisting of Ethereum (ETH). Currently, other than stablecoins, only Bitcoin (BTC) was handled.
connection: P2P virtual currency exchange Paxful to delist Ethereum
What is a stablecoin
A cryptocurrency whose price is always stable. Various stablecoins have been developed whose value is backed by legal currency or virtual currency, or whose price is stabilized by algorithms.
Cryptocurrency Glossary
connection: What is a stablecoin that even beginners can understand | Explain features and use cases
Impact of litigation issues
Regarding the termination of this service, a “Space” was held on Twitter. Youssef also participated in this Space.
Spaces on the suspension of the @paxful marketplace for us bitcoiners here https://t.co/59eH6We4Aq
— Ray Youssef (@raypaxful) April 4, 2023
According to him, the termination of the service seems to be affected by Mr. Schaback’s lawsuit. Schaback is suing Paxful and Youssef. Schaback has refused to pay salaries to several of his employees, apparently resulting in some layoffs.
The lawsuit is not discussed in this announcement and may be announced in detail in the future.
Examples of service termination
Regarding the P2P exchange, LocalBitcoins also announced the end of service in February this year. It has been operating for more than 10 years with the mission of promoting financial inclusion, but explained the reason for the termination of the service, saying, “We could not overcome the winter of cryptocurrencies.”
connection: Long-established P2P virtual currency exchange LocalBitcoins, to end the service that has continued for over 10 years
Also, regarding US regulations, the cryptocurrency exchange Bittrex announced this month that it will close its US operations on April 30. The company cited regulatory uncertainty as the main reason for the closure.
Bittrex CEO Ritchie Lai said, “Continuing business in the current US regulatory and economic environment is unprofitable and impossible.” “Regulatory requirements are often unclear and enforced without proper debate and input, creating an unlevel playing field,” it said.
connection: Cryptocurrency exchange Bittrex to close operations in the US
The post P2P Cryptocurrency Exchange Paxful Announces End of Service appeared first on Our Bitcoin News.
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