As a researcher with a background in cryptocurrency and privacy technologies, I find the closure of LocalMonero, a significant peer-to-peer trading platform for privacy-focused Monero, a concerning development. Having closely followed the privacy coin ecosystem, I am aware that Monero and similar privacy coins have faced increasing scrutiny from global finance regulators.
LocalMonero, the Monero trading platform, has announced its closure due to internal and external pressures in the face of increasing regulation against privacy-centric cryptocurrencies.
LocalMonero Shuts Down Operations
Significant Monero trading platform, LocalMonero, which has served the privacy-conscious cryptocurrency community for almost seven years, has recently announced that it will be shutting down. This news was shared with users via a notice on the platform’s website, posted on May 7th.
Users are encouraged to withdraw any unused funds from their Monero wallets by May 7 to prevent the possibility of those funds being labeled as abandoned and forfeited. Starting now, new user registrations and Monero trade advertisements will no longer be allowed on the platform.
On May 14, Monero trading will no longer be allowed, so users must conclude any open transactions or cancel them prior to this date.
Privacy Coins Under Attack?
The closure announcement stated,
As a long-term crypto investor, I’ve been following the progress of this platform for nearly seven years. Regrettably, after much consideration and analysis of both internal and external factors, I’ve come to the painful conclusion that it’s time to shut down the operation of this platform. This decision was not made lightly, and I deeply regret any inconvenience or hardship it may cause to our valued community members.
As a researcher examining the recent announcement, I’ve noticed that while the details of the “internal and external factors” were not provided, the platform implied that the growing antagonism towards privacy-focused offerings could be among the reasons behind their decision.
The use of privacy coins and associated services, such as Monero, has come under closer examination from financial regulators around the world. This heightened scrutiny was underscored in April with the arrests of Samourai Wallet’s co-founders on money laundering allegations, signaling a growing trend towards increased regulatory oversight.
Reaction from the Community
Seth For Privacy, known for his advocacy for privacy, lamented the shutdown of LocalMonero. He emphasized its significance in the Monero community that doesn’t require Know Your Customer (KYC) procedures. With no straightforward option for converting fiat currency to Monero available, he pondered on potential reasons behind the closure, leaving users to contemplate possibilities.
Some people view the closure of LocalMonero as a further blow to the reputation and use of privacy coins and their associated protocols. This comes after Kraken ended Monero services for clients in Ireland and Belgium in April, and more recently, legal proceedings against Tornado Cash.
The Future of Monero
Founded in 2017, LocalMonero served as the Monero version of LocalBitcoins. Over the years, Monero’s ecosystem grew and matured, and LocalMonero recognized this development. Although they have since closed down, the team remains optimistic about Monero’s future. They highlighted the upcoming launches of decentralized exchanges like Haveno and Serai, as well as the recently announced privacy update called Full-Chain Membership Proofs (FCMPs), as reasons for their confidence in Monero’s continued success.
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2024-05-08 17:11