LocalMonero, a platform that facilitates Monero peer-to-peer trading, was recently shut down [XMR], which resonated throughout the cryptocurrency community. The closure compounds the challenges faced by privacy-focused crypto services under regulatory pressure and poses a challenge for financial privacy advocates.
LocalMonero's sudden announcement on May 7th surprised users. After that, we immediately stopped advertising for new registrations and Monero transactions. The platform will cease all trading activity by May 14, 2024, citing unspecified “internal and external factors.” This left users guessing the reasons behind the decision.
Founded in 2017 as the Monero equivalent of LocalBitcoins, LocalMonero acknowledged the evolution of the Monero ecosystem while expressing optimism in the face of the shutdown. He pointed to upcoming decentralized exchange and privacy updates as signs of Monero's resilience.
Privacy coin setback?
LocalMonero's shutdown is seen by many as a setback for privacy coins, made worse by Kraken's recent suspension of Monero support and legal actions against privacy-centric projects like Tornado Cash. The crackdown on privacy coins and services extends beyond LocalMonero. Back in April, the founders of Samourai Wallet were facing money laundering charges.
Also read: Will Monero, Zcash face government sanctions in the future?
how about monero [XMR] Falling?
Despite these challenges, Monero continues to weather rough waters. At the time of writing, XMR is trading at $129.08, down 1% daily. XMR appears to continue to remain resilient amidst recent setbacks. This asset reflects his remarkable increase of 60383.51% from its all-time low. However, Privacy Coin is 75% below its all-time high of $517.62.
The broader impact of these closures and regulatory measures remains uncertain. Although some argue that intelligence agencies are prioritizing catching the bad guys over eradicating privacy protocols, regulatory scrutiny looms over the future of financial privacy in the crypto industry.
Also read: How to mine Monero (XMR)
