Closure of Paxful: a blow to the crypto market

So far, no suspicious information had filtered out about the Paxful exchange, which seemed to be adapting to the bear market. The announcement of the interruption of its activities is therefore absolutely unexpected news. Here are the reasons that could explain the situation.

Paxul torn between regulatory issues and staff departures

On Tuesday April 4, the bitcoin (BTC) exchange platform Paxful formalized the suspension of its operations. A cold shower for users of the exchange said it was unsure if it would be up and running again.

The news is all the more a shock that no information allowing to consider such an outcome had filtered on the company, recently. However, there are indeed reasons foreshadowing potential difficulties. Indeed, several sources have mentioned power struggles within the company.

But officially, these are other reasons mentioned by the leaders as the reason for this sudden cessation of activity. Thus, according to Ray Youssef, CEO of Paxful, the company is closing its doors due to the departure of several key employees.

The leader also discusses an increasingly hostile regulatory environment for the growth of crypto companies like Paxful. “US regulators have done a great job of catching up […] over the past five years, but they are still stubborn. They are becoming more and more suspicious every day,” criticized Ray Youssef.

These two reasons would therefore be the basis for the suspension of the company’s activities. Certainly, the boss of the latter reassured users about the availability of their assets. He even called on them to withdraw them. But that does not hide the impact that this decision has on users around the world. An impact felt differently elsewhere.

Nigerian users, collateral victims of Paxful’s choice?

There is no denying that this decision most closely affects Paxful users everywhere. But according to the latest news, it is in Nigeria that the consequences are most intensely felt.

It must be said that according to a study published in 2020 by Chainalysis, Paxful has been largely the player in the exposure of cryptos in Nigeria. This earned the country a ranking of 8e rank of countries where cryptos are the most adopted.

Paxful was therefore the absolute reference of the Nigerian crypto market supported by the authorities. Several members of the Paxful community in the country regret the end of its activities. This is the case of Emmanuel Susegh who saw the closure of the platform as “the death of a loved one”.

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