LocalMonero, a prominent peer-to-peer centralized platform for trading XMR, is shutting down its services in response to the global crackdown on privacy-focused tokens.
The platform, which facilitates the buying and selling of Monero (XMR) directly between users, announced the closure in a blog post on May 7. Users will be able to conduct trades until May 14, after which new trades will be disabled. While withdrawals will still be allowed until Nov. 7, no new registrations will be accepted. LocalMonero also warned that unclaimed funds after the deadline may be considered forfeited.
Despite attempts to reach out for comment, Crypto.news has yet to receive a response from LocalMonero.
Established in 2017 and based in Hong Kong, LocalMonero has been a go-to platform for XMR enthusiasts looking to trade without a central authority. The decision to close down services comes as the global crackdown on privacy-centric cryptocurrencies like Monero and Zcash (ZEC) intensifies.
In recent years, major exchanges have taken steps to delist privacy tokens. OKX, for instance, announced the delisting of XMR and other anonymous cryptocurrencies in December 2023, citing a failure to meet their strict criteria. Binance followed suit by removing XMR from its trading pairs, leading to a notable drop in the token’s value. Additionally, Kraken delisted Monero in Belgium and Ireland due to regulatory concerns.
The removal of XMR from centralized platforms has had a noticeable impact on the token’s trading volumes. Market liquidity for privacy tokens has reached record lows, according to data from Kaiko, as exchanges continue to delist these assets to comply with local regulations.
As the industry grapples with regulatory pressure, the closure of LocalMonero underscores the challenges faced by privacy-focused cryptocurrencies in the current landscape.