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Monero-based peer-to-peer (P2P) exchange LocalMonero is shutting down, the platform announced in a blog post.
LocalMonero announced that it would be “winding down” the exchange after roughly seven years of operation, citing a “combination of internal and external factors.”
The project is disabling all new registrations and advertising posts effective immediately. New transactions will be disabled from May 14th, and the website itself is scheduled to shut down on November 7th, 2024.
The LocalMonero team urged users to retrieve funds from their arbitration bond wallets by November 7, 2024, stating that “otherwise, funds may be considered abandoned/confiscated.” Support will be provided for users until the shutdown date on November 7.
What is LocalMonero?
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. This is a feature, not an oversight. The exchange advertises that it allows users to buy Monero “anonymously without identity verification.”
Cryptocurrency etc. Bitcoin and Ethereum There is a public transaction ledger with pseudo-anonymous wallet addresses, and running KYC checks on these wallets can link an individual’s identity to a complete record of their wallet’s transaction history.
Privacy coins such as Monero use a variety of encryption techniques to protect identities and allow users to transact anonymously.
Monero has come under scrutiny from lawmakers and regulators: in 2020, the IRS offered a reward to anyone who could crack the cryptocurrency's privacy features, while crypto exchanges such as Binance delisted it. This month, the UK government named privacy coins as not serving the “public interest.”
LocalMonero's closure comes as crypto privacy projects face increasing pressure from law enforcement: Last month, the founder of bitcoin mixer Samourai Wallet was arrested and charged with money laundering conspiracy, while Tornado Cash developer Roman Storm was arrested last year on similar charges.
In both cases, U.S. prosecutors have broadly interpreted money transmission laws to include developers who have no direct control over users' funds, raising concerns about a crackdown on crypto privacy. Following the arrests, several crypto privacy projects have been shut down or blocked from access by U.S. citizens.
In a statement accompanying the announcement of LocalMonero's closure, the team behind the platform claimed that the Monero ecosystem is extremely healthy.
They pointed to the upcoming launches of Monero DEXs, including Haveno and Serai, as well as the development of new privacy features such as Full-Chain Membership Proofs (FCMP), and said they “are confident that the future is bright for Monero, with or without our platform.”
Editor: Stacey Elliott.
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