Paxful, a peer-to-peer Bitcoin exchange with 1.5 million customers in Nigeria, has announced that it is ceasing operations.
In a blog post published on Tuesday, co-founder and CEO Ray Youssef made this disclosure.
He said, “Today, Paxful will be suspending its marketplace. We are not sure if it will come back.
“This will probably come as a big shock to many. 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.”
According to Decrypt, Youssef said during a Twitter Space that a lawsuit filed by a Paxful co-founder who is suing Paxful and Youssef after being “kicked out of the firm” over a year ago also had an impact on the decision to shut down the site.
“My co-founder sued the company and sued me. I have a lawsuit over my head right now,” he was quoted as saying on the Twitter Space.
The 2020 Geography of Cryptocurrency Study by Chainalysis ranks Nigeria ninth in crypto acceptance and usage among the 154 nations included in the study, despite the fact that bitcoin is illegal in Nigeria.
Peer-to-peer technology was introduced to Nigeria by Paxful, which contributed to the growth of the cryptocurrency sector there.
The CEO of Paxful stated that Nigeria is the company’s largest market, with 1.5 million users and a volume of over $1.5 billion to date, in an interview with Business Africa Insider in 2022. (since 2015).
In 2021, the Central Bank of Nigeria outlawed cryptocurrency exchanges and related transactions. According to CBN, cryptocurrencies are being used for a number of illicit acts, such as tax evasion, the acquisition of small arms and light weapons, financing of terrorism, and money laundering.