LocalMonero, a peer-to-peer exchange for the Monero coin, announced plans to shut down its services after 7 years of operation.
The platform cited internal and external factors as the reasons behind its decision. Let’s discover more about LocalMonero.
LocalMonero to Cease Monero Trading
As per the announcement, all new signups and advertisements for Monero trades on LocalMonero have been disabled. The peer-to-peer exchange will fully disable the trading of the Monero coin on May 14.
While no official details were shared about the shutdown, a source revealed that the growing hostility towards privacy coins was a contributing factor. LocalMonero plans to shut down its website by November 4th. The platform encouraged users to reclaim funds from their wallets before the date. Unclaimed funds will be treated as abandoned, according to the exchange.
Hey everyone,
After almost 7 years of operation, we have made the difficult decision to close our platform.
The winding-down process begins today, and finishes 6 months from now. Our support will be available for help throughout this period.
Read more:https://t.co/66gqe5HFpc
— LocalMonero (@LocalMoneroCo) May 7, 2024
LocalMonero first emerged in 2017. It enabled users to easily and directly buy XMR. Monero is one of the foremost privacy coins, focusing on anonymity in transactions. However, privacy coins have recently faced increased attacks. Top exchanges such as Binance have delisted privacy coins in recent years.
Regardless, LocalMonero, in a statement, expects Monero to continue to thrive, citing its growing ecosystem. The exchange wrote: “We’re confident that Monero’s future is bright, with or without our platform.” The coming launch of the monero-focused DEXs is one source of confidence.
What Does This Shutdown Mean?
LocalMonero’s shutdown is being seen as a blow to the privacy coin market. Platforms like Tornado Cash have faced legal challenges with authorities. Many believe these privacy protocols aid crimes such as money laundering.
For those who are at all concerned with this, Monero does not need Binance (or any other KYC exchange) to be successful in its roll as a powerful tool for freedom.@LocalMoneroCo + atomic swaps + @SeraiDEX are all we need for fiat/BTC on-ramps, and even if LocalMonero goes away…
— Seth For Privacy | #FreeSamourai (@sethforprivacy) February 6, 2024
The co-founders of crypto mixer Samourai Wallet were arrested in April for alleged money laundering. Others, such as Wasabi CoinJoin and Trezor CoinJoin, succumbed to the pressure on privacy coins and shut down their operations.
Most agencies, such as the FBI, believe privacy projects make it harder to catch bad actors. Time will show how the future looks for this sector of the market.
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