- LocalMonero, a significant Monero trading platform, is shutting down after seven years.
- Recent regulatory developments likely contributed to LocalMonero’s closure.
- Users have until November 7, 2024, to withdraw their funds from LocalMonero.
Prominent participant in the Monero peer-to-peer trade ecosystem LocalMonero has made the decision to cease operations after almost seven years of continuous operation. Alex Daneo, co-founder of the site, made the announcement of the shutdown on Reddit and listed several internal and external challenges as the cause. He declared it was not practical to keep the platform running.
Many in the cryptocurrency community think that current regulatory developments had an impact on LocalMonero’s decision to stop operating. These include the FBI issuing a public service announcement on non-know-your-customer cryptocurrency money transmitters and the co-founders of Samourai Wallet being charged on criminal counts.
Financial services companies who lacked sufficient know your customer (KYC) procedures in place were issued a harsh warning by these incidents.
Like LocalMonero, the Federal Bureau of Investigation (FBI) seized Samourai Wallet for offering users privacy-focused services that let them anonymize their cryptocurrency transactions.
While LocalMonero was mostly in charge of enabling cash-for-XMR transactions, Samourai Wallet mostly offered services for mixing Bitcoins. Though using different approaches, both services catered to consumers who wanted to keep their identities anonymous during their transactions.
Numerous firms and coin mixers that prioritized user privacy closures were brought about by the regulatory crackdown. According to LocalMonero, there will be a six-month wind-down phase at which time users can take their money out until November 7, 2024.
Still, the peer-to-peer structure of the site makes it challenging to determine its trade volumes. This is so that most transactions probably happened off-platform. Though it was crucial to the cryptocurrency trading community, LocalMonero was never given the recognition it deserved on ranking sites like CoinMarketCap and CoinGecko.
This low profile is a result of its focus on enabling peer-to-peer trading rather than serving as a conventional exchange. Although in its early days LocalMonero showed potential, the current situation has caused it to disappear.
The shutdown highlights the challenge faced by privacy-focused cryptocurrency services in a world going more and more regulated. Users have till November 7, 2024, to complete their activities and withdraw their funds.
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