LocalMonero, one of the largest peer-to-peer centralized platforms for trading XMR, is shutting down amid a global crackdown on privacy-focused tokens.
LocalMonero, a centralized peer-to-peer marketplace for trading Monero (XMR), is shutting down, citing “internal and external factors” as the reason.
The platform said in a blog post on May 7 that users can still trade until May 14, after which new transactions will be disabled. Additionally, the platform has stopped new registrations, but will continue to accept withdrawals until November 7. LocalMonero also warned that after the deadline, any unclaimed funds “may be considered abandoned/confiscated.”
“After approximately seven years of operation, due to a combination of internal and external factors, we have made the difficult decision to close our platform.”
Local Monero
Crypto.news reached out to LocalMonero for comment but had not received a response at the time of writing.
Founded in 2017, the Hong Kong-based platform allows users to buy and sell XMR directly, without the need for a centralized intermediary. The closure comes amid a global crackdown targeting privacy-focused cryptocurrencies such as Monero and Zcash (ZEC).
In December 2023, cryptocurrency exchange OKX announced the delisting of XMR and other anonymous cryptocurrencies for failing to meet “rigorous standards.” Another cryptocurrency exchange, Binance, subsequently removed XMR from its trading pairs, causing the token's value to plummet. Additionally, American cryptocurrency exchange Kraken delisted Monero in Belgium and Ireland due to European anti-money laundering regulations.
The complete removal of XMR from centralized platforms has already affected the token's trading volume, with market liquidity for privacy tokens hitting an all-time low as cryptocurrency exchanges continue to delist these assets to comply with local regulations, according to data from blockchain analytics firm Kaiko.
