Monero trading platform LocalMonero is hanging up its hat, citing internal and external factors amid a broader regulatory crackdown on privacy-focused cryptocurrencies.
LocalMonero Shuts Down Operations
LocalMonero, a significant peer-to-peer trading platform for the privacy-focused cryptocurrency Monero, has announced the closure of its operations. The platform, in operation for nearly seven years, communicated this decision through an announcement on its website, dated May 7.
The announcement urged its users to reclaim any funds from their wallets before May 7 to avoid potential loss, as unclaimed funds might be considered abandoned. Effective immediately, all new signups and advertisement postings for Monero trades are disabled.
Additionally, Monero trading will be disabled on May 14, prompting users to finalize or cancel all trades before that date.
Privacy Coins Under Attack?
The closure announcement stated,
“After almost 7 years of operation, due to a combination of internal and external factors, we have made the difficult decision to close our platform.”
Although the specifics of these "internal and external factors" were not elaborated upon in the announcement, the platform hinted at the broader hostility toward privacy-centric products and services as one of the factors contributing to its decision.
Privacy coins and services, including Monero, have faced increased scrutiny from global finance regulators. In April, the co-founders of crypto mixer Samourai Wallet were arrested on charges of money laundering, indicative of the intensifying regulatory pressure.
Reaction from the Community
Privacy advocate "Seth For Privacy" expressed sadness at LocalMonero's closure, highlighting its role as a cornerstone of the no-KYC Monero ecosystem. He noted the absence of a direct fiat to Monero alternative and suggested that while the platform didn't provide a specific reason, users could speculate.
The shutdown of LocalMonero is seen by some as another setback for privacy coins and protocols. It follows Kraken's termination of Monero support in April for customers based in Ireland and Belgium, along with recent legal action against Tornado Cash.
The Future of Monero
Established in 2017 as the Monero equivalent of LocalBitcoins, LocalMonero acknowledged the growth and maturation of the Monero ecosystem over the years. Despite its closure, the platform's team expressed confidence in Monero's future. They pointed to the imminent launch of decentralized exchanges like Haveno and Serai, as well as the recently announced privacy update called Full-Chain Membership Proofs (FCMPs). They believe that Monero will continue to thrive, with or without their platform.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
