Monero (XMR) LocalMonero, the largest peer-to-peer (P2P) trading platform, announced its closure on May 7th. This also meant the end of almost seven years of operations in the crypto space.
The closure comes against the backdrop of increased surveillance and regulatory measures targeting privacy-focused cryptocurrencies and platforms in the United States. Indeed, these regulatory enforcements are raising concerns about the future of privacy in the digital asset industry.
LocalMonero Shutdown Timeline and Details
The announcement detailed the schedule for reducing operations. This included an immediate suspension of new registrations and advertising postings, as well as the closure of the platform until November 7, 2024. Additionally, the LocalMonero team thanked its users and expressed confidence in the future of the Monero ecosystem.
“LocalMonero has been around for most of Monero’s life. Fortunately, the Monero ecosystem has matured significantly in recent years, with the launch of other DEXs such as Haveno, Serai, and Atomic Swaps. is just around the corner, with the planned addition of FCMP (a complete blockchain anonymity set replacing 16 rings), and the continued development of the Monero protocol, which is rapidly accelerating, the presence or absence of our platform Regardless, we are confident that the future of Monero is bright,” the LocalMonero team wrote.
As LocalMonero ceases operations, the platform has outlined clear instructions for users. If you start immediately, new users will not be able to register and will not be able to start new transactions starting May 14th. The user has until November to complete the transaction and withdraw funds from his account.
This phase-out period is intended to ensure a smooth transition for the community and prevent the forfeiture of funds. Nevertheless, the team remains committed to supporting users through arbitration and dispute mediation during this period.
The closure of the platform disappointed many in the Monero community. Douglas Tuman, an active member of the Monero community and host of the podcast Monero Talk, expressed his sadness at the loss.
“So sad to see you go. You guys have done great things for Monero. Thank you for bringing Monero users onto your platform and helping facilitate peer-to-peer trading. Thank you. I hope you come back in another form. Cheers! Said.
Following this announcement, the price of Monero fell from $129.69 to $126.80. This is a decrease of approximately 2.23%. However, as of this writing, Monero's price is trading at his $129.23.
Read more: Monero (XMR) Price Prediction 2023/2025/2030
LocalMonero's exit comes as broader regulatory challenges in the US impact other privacy-centric services. BeInCrypto previously reported that US authorities arrested Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill. They charged them with serious financial crimes.
U.S. authorities claim Samurai Wallet facilitated billions of dollars in illegal transactions and enabled money laundering. His Samourai Wallet services such as “Whirlpool” and “Ricochet” processed a significant amount of Bitcoin. They generated millions of dollars in fees while providing financial anonymity to users.
Additionally, Phoenix Wallet and Wasabi Wallet are no longer serving customers in the United States. This is due to enforcement of regulations for Samourai Wallet.
In particular, the Office of Foreign Assets Control (OFAC) imposed sanctions against cryptocurrency mixer Tornado Cash in August 2022. At the time, OFAC also said Tornado Cash had laundered $7 billion worth of money.
OFAC's action sparked debate in the cryptocurrency community. Many argue that this incident sets a dangerous precedent for privacy-focused software developers within the cryptocurrency ecosystem.
But the market is now focused on the lawsuit against Dutch Tornado Cash developer Alexei Pertsev. The verdict is scheduled to be handed down on May 14th.
Read more: How to buy Monero (XMR) and everything you need to know
The cryptocurrency community is awaiting the outcome of the Tornado Cash scandal. Many are concerned that it could threaten privacy-minded software developers in the ecosystem.
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