Paxful shuts down its bitcoin platform in Nigeria » Voice of Nigeria
Peer-to-peer bitcoin platform, Paxful, with 1.5 million users in Nigeria, has announced the closure of its operations.
Paxful, a popular peer-to-peer cryptocurrency platform, recently announced the shutdown of its Bitcoin trading services in Nigeria. With over 1.5 million Nigerian users, the decision came as a surprise to many. In this blog, we will discuss the reasons behind the shutdown, the withdrawal process, and the deadline for users to withdraw their funds. If you are a Paxful user in Nigeria, it is important to know what steps to take to ensure you can access your funds before it’s too late. Stay tuned for more information on this developing story.
Reasons for the shutdown
Co-founder and CEO of Paxful, Ray Youssef, in a blog post on Tuesday, announced the suspension of the marketplace, citing regulatory challenges and key staff departures as the reasons for the shutdown. He also urged users to explore self-custody and trade elsewhere.
Lawsuit and influence on the shutdown
In a Twitter Space, Youssef said that the decision to shut down the platform was also influenced by a lawsuit brought by a Paxful co-founder who is suing Paxful and Youssef after being “kicked out of the company” over a year ago.
The co-founder is likely Artur Schaback, who filed a lawsuit in Delaware Chancery Court against Youssef in January.
Nigeria’s crypto adoption
Although cryptocurrency is restricted in Nigeria, a 2020 report by Chainalysis ranked Nigeria eighth in crypto adoption and usage among 154 countries included in the study.
In 2022, a crypto accounting services firm, Recap, listed Lagos and Ibadan as cryptocurrency hubs.
Recap compiled a list of the top 50 crypto hubs globally, which featured Nigerian cities.
Lagos and Ibadan were recognized as prominent cryptocurrency hubs by Recap, a notable crypto accounting services firm.
Paxful’s role in expanding Nigeria’s crypto industry
Paxful is recognized for being the first to utilize peer-to-peer technology in Nigeria, which has contributed to the growth of the cryptocurrency industry in the country.
According to the CEO of Paxful, in an interview with Business Africa Insider in 2022, Nigeria is their largest market, with over 1.5 million users and a volume of over $1.5 billion to date (since 2015).
Paxful’s adoption of peer-to-peer technology has been instrumental in expanding the use of cryptocurrencies in Nigeria.
The CEO’s remarks highlight the significance of Nigeria as a market for Paxful and the crypto industry, given the high number of users and transaction volumes.
Paxful’s contribution to the growth of the crypto industry in Nigeria underscores the importance of innovation and technology in driving financial inclusion and economic development.
Impact on Nigerian crypto space
The shutdown of Paxful’s platform is expected to negatively impact the Nigerian crypto space. The President of Stakeholders in Blockchain Technology Association of Nigeria and General Secretary of Blockchain Industry Coordinating Committee of Nigeria, Senator Ihenyen, told The Punch that it would be a significant negative impact on the growth of P2P in the Nigerian space.
He noted that self-custody of crypto assets on decentralised exchanges will gain more prominence, especially with the recent and pronounced failure of many centralised exchanges.
Timeline for withdrawals
The firm confirmed on Wednesday that there is currently no timeline for withdrawals. In an email, a spokesperson said, “The Paxful Wallet is up for users to safely get out their funds. Ray shared that he will not get his BTC off the platform until users do so as well.
There’s no timeline, but we will be transparent as details unfold.”
