P2P exchange Paxful shuts down amid conflict

P2P Marketplace Bitcoin, Paxful suspended sound activity due to departures among its collaborators and the regulatory pressure. A restart is uncertain.

Nothing goes on at Paxfula historical player of cryptocurrencies in the United States. Since February, it is the second P2P marketplace, after LocalBitcoins, to draw the curtain. And its CEO, Ray Youssef, recognizes that a recovery is unlikely.

On the website of the Bitcoin exchange – ETH trading had ended in 2022 – the executive gives little indication of the reasons for this sudden stop of the business. “I can’t give you all the details, but I can tell you that we unfortunately had to deal with significant staff departures “, he mentions.

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The “safest option” closure

The founder also refers to “the regulatory challenges for the sector” with regulations that are becoming stricter, “particularly in the peer-to-peer market and especially in the United States”. it is in this context that Paxful has chosen the “safest option”.

The platform has therefore decided to suspend its activities and therefore asks its users to withdraw their assets in favor of self-custody. Customers retain access to the in-house wallet, Paxful Wallet.

The company recommends that they transfer their tokens to other wallets, such as Exodus Wallet and Muun Wallet. Paxful also encourages its non-US users to easily migrate to alternatives, including Noones or Bitnob.

Paxful’s difficulties actually date back several months. In December, the put an end to to the trading of ethers. He then invoked the migration of the network from proof-of-work to proof-of-stake with The Merge.

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Civilization Kit, a new Bitcoin project

It seems, however, that the crypto marketplace’s operations are suffering primarily from a legal dispute with its co-founder Artur Schaback. On Twitter, Ray Youssef acknowledged that the procedure was the reason for the departure of its main executives.

I could not guarantee the security of the platform,” he says again to justify the closure and the call to users to remove their digital assets from the platform. The CEO has other plans elsewhere.

He is indeed promoting a new platform, Civilization Kit (Civ Kit). The decentralized application for peer-to-peer bitcoin exchange is based on the Nostr carried by Jack Dorsey for the development of decentralized social networks.

Ray Youssef says that the Civilization Kit white paper should be published within one to two weeks. He then hopes to find support within the Bitcoin community to fund and develop this application project.

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