LocalMonero exchange shutters due to ‘internal and external factors’

As a researcher with a background in cryptocurrencies and digital markets, I find the news of LocalMonero’s sunsetting services deeply concerning. Having followed the development of privacy-focused tokens like Monero (XMR) for several years, I have witnessed firsthand the increasing regulatory scrutiny targeting these assets.


As a crypto investor, I’ve come to rely on LocalMonero as one of the go-to platforms for trading Monero (XMR) through peer-to-peer transactions. However, I’ve recently received some disappointing news: LocalMonero has announced that they will be discontinuing their services due to the intensifying global crackdown on privacy tokens like Monero. This means that those of us who have relied on this platform for our XMR trading needs must now seek out alternative solutions in order to continue our investments in this digital currency.

The decentralized Monero trading platform, LocalMonero, is shutting down due to pressures from both inside and outside the organization.

As a researcher, I came across a blog post dated May 7 from LocalMonero announcing some important changes to their platform. According to the post, users have until May 14 to execute trades. After this date, the ability to open new trades will be suspended. Additionally, new user registrations are currently halted, but withdrawals will remain accessible until November 7. It’s essential to note that funds left unclaimed after the deadline of November 7 may be considered abandoned or forfeited.

“We’ve run our platform for nearly 7 years, but regrettably, a mix of internal and external influences has forced us to make the tough call to shut it down.”

LocalMonero

Crypto.news reached out to LocalMonero for comment but has not heard back as of press time.

Established in 2017, this Hong Kong platform enables users to trade XMR directly with one another, bypassing the requirement for a central intermediary. The announcement of its shutdown occurs during the ongoing worldwide efforts to restrict the use of privacy-centric cryptocurrencies such as Monero and Zcash (ZEC).

In December 2023, I came across some disappointing news as both OKX and Binance, two prominent cryptocurrency exchanges, announced the delisting of Monero (XMR) and other anonymous digital currencies from their platforms. They stated that these tokens didn’t meet their stringent criteria. Following this announcement, XMR’s value took a significant hit due to the loss of trading pairs on these major exchanges. Moreover, Kraken, another American crypto exchange, removed Monero from its offerings in Belgium and Ireland to comply with European anti-money laundering regulations.

As a researcher examining the cryptocurrency market, I’ve noticed that the complete withdrawal of XMR from centralized platforms has significantly influenced its trading volumes, according to data from Kaiko, a reputable blockchain analytics firm. The market liquidity for privacy tokens has reached all-time lows due to crypto exchanges delisting these assets in response to regulatory pressures.

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2024-05-08 11:26