Monero-based peer-to-peer (P2P) exchange LocalMonero is shutting down, the platform announced in a blog post.
LocalMonero said it was “winding down” the exchange after nearly seven years of operation, citing “a combination of internal and external factors.”
This project will immediately disable all new registrations and advertising posts. After May 14th, new transactions will be disabled and the website itself will be deleted on November 7th, 2024.
The LocalMonero team urges users to retrieve funds from their Arbitration Bond wallets by November 7, 2024, “otherwise the funds may be considered abandoned/forfeited.” Support is available to users until his closure date of November 7th.
What is Local Monero?
LocalMonero is a P2P exchange where users can buy and sell privacy coins. Monero (XMR). The platform does not perform know-your-customer (KYC) checks. That's a feature, not an oversight. The exchange advertises that it allows users to buy Monero “anonymously without ID verification.”
cryptocurrencies such as Bitcoin and Ethereum It has a public ledger of transactions with pseudo-anonymous wallet addresses. Once her KYC checks are performed on these wallets, an individual's identity can be tied to a complete record of the wallet's transaction history.
Privacy coins such as Monero use a series of encryption techniques to protect identities and allow users to transact anonymously.
Monero has come under intense scrutiny from lawmakers and regulators. In 2020, the IRS offered bounties to anyone who could crack Monero's privacy features, but crypto exchanges like Binance delisted Monero. Just this month, the UK government singled out privacy coins as not “contributing to the public interest”.
LocalMonero's shutdown comes as the crypto privacy project faces increasing pressure from law enforcement. Last month, the founders of Bitcoin mixer Samurai Wallet were arrested and charged with money laundering conspiracy, following the arrest of Tornado Cash developer Roman Storm on similar charges last year.
In both cases, U.S. prosecutors have expanded their interpretation of money transfer laws to target developers who cannot directly control user assets, raising concerns about a crackdown on crypto privacy. Following the arrest, multiple crypto privacy projects have been shut down or had their access cut off to US citizens.
In a statement accompanying the announcement of LocalMonero's closure, the team behind the platform claimed that the Monero ecosystem is in a very healthy state.
They point to the impending launch of Monero DEXs, including Haveno and Serai, as well as the development of new privacy features such as Full-Chain Membership Proof (FCMP), and say, “We believe the future is bright for Monero. Without a platform.”
Edited by Stacey Elliott.
