LocalBitcoins for Monero Exchange is closing after seven years of service to the XMR community.
The Monero (XMR) peer-to-peer trading platform has closed. The ticker for XMR is currently down at $128. This closure contributes to the recent trend of crypto privacy closures and arrests.
On May 7, LocalMonero declared that advertisements and new signups for Monero trades are no longer allowed. This modification takes effect right now. On May 14, the platform will stop trading the crypto asset with a privacy focus.
The company gave the closure’s “internal and external factors” explanation, but it kept the details.
On November 7, the website will go down. Users should get their money from their wallets before that day. Consider money abandoned if it remains after November 7th.
The P2P Monero trading platform launched in 2017. It aimed to be the XMR equal to LocalBitcoins. The platform recognizes that the Monero ecosystem has grown over time.
The team brought up the upcoming release of decentralized exchanges like Serila and Haveno. They also emphasized Full-Chain Membership Proofs (FCMPs), a recently announced privacy update. Regardless of the existence of their platform, they are optimistic about Monero’s bright future because of these advancements.
Some see the change as another hit to privacy methods and coins. In April, Kraken stopped supporting Monero in Belgium and Ireland. Tornado Cash has been the target of recent legal action.
Privacy Advocates and Services Face Regulatory Challenges
On May 7, privacy advocate “Seth For Privacy” expressed regret. He posted on X, calling it a “very depressing day”. He claims that LocalMonero has been essential to the no-KYC Monero ecosystem. There isn’t currently a direct fiat-to-XMR substitute available.
He stated that the platform did not justify the action. It is up to the users to speculate on its purpose.
“Feels like we’re deep in the trenches of an all-out anti-privacy crypto war right now.”
In recent months, privacy coins and services have come under fire from global financial regulators. In April, crypto mixer Samourai Wallet co-founders faced arrests on money laundering charges.
The founders of Wasabi CoinJoin and Trezor CoinJoin, two privacy services, shut them down. This decision led to a growing emphasis on privacy in the digital sphere.
Early in May, Alan Scott Jr., who developed the Ethereum privacy system Railgun, gave Cointelegraph some insightful observations. He said that, contrary to common belief, intelligence services might not be as opposed to privacy regulations.
“Their concern is the potential problems around impeding their ability to catch bad actors,” he stated at the time, referring to organizations like the FBI.
