See More

Regulation Kills off Another Exchange as Paxful Shutters

1 min
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • Ray Youssef, the CEO of Paxful announced the shutting down of the marketplace.
  • Although he didn't share the full story, but said that regulatory challenges continue to grow in the US.
  • Last week, the SEC forced the shutting down of Beaxy exchange.
  • promo

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.

Got something to say about Paxful or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on Tik Tok, Facebook, or Twitter.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Top crypto projects in the US | May 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2264-1.png
Harsh Notariya
Harsh Notariya excels in delivering SEO-optimized crypto news under tight deadlines. Previously, as a Growth Marketer at Sporty and a Community Consultant at Totality Corp, he significantly boosted community engagement and followers. Harsh also crafted engaging content for top crypto influencer Shivam Chhuneja, blending meme references for an educational yet fun experience. His versatile skills make him a notable figure in crypto journalism.
READ FULL BIO
Sponsored
Sponsored