According to data from Santiment, discussions about Monero have increased significantly on social media following LocalMonero's closure announcement.
This increased attention to Monero (XMR) coincides with continued government efforts to regulate privacy-focused assets.
LocalMonero is shutting down
LocalMonero, a peer-to-peer (P2P) exchange based on Monero (XRP), announced its closure via a blog post, citing a combination of internal and external factors. After nearly seven years of operation, the platform will scale back its exchange operations and cease new registrations and advertising postings immediately. This has led to an increase in discussions about Monero.
Starting May 14th, XMR trading will be suspended and the website will be taken offline on November 7th, 2024. Users are encouraged to withdraw funds from their arbitration bond wallets by the November 7 deadline to avoid possible asset forfeiture. Meanwhile, support services will continue to be available until the closure date.
Despite the closure, the LocalMonero team expressed confidence in the future of Monero. They highlighted the maturation of the ecosystem over the years, the upcoming launch of Monero DEXs such as Haveno and Serai, and the development of new privacy features such as Full-Chain Membership Proofs (FCMP).
Privacy advocacy group Seth For Privacy lamented the closure in a post on X, calling it an “incredibly sad day.” He pointed to the emergence of LocalMonero as a non-KYC Monero ecosystem and emphasized that there is no direct alternative from fiat to XMR. Although the platform did not reveal the specific reason for the closure, users can speculate on the factors that contributed to this decision.
Privacy coins are under scrutiny
LocalMonero's shutdown coincides with increased pressure from law enforcement against crypto privacy projects. The move is seen by many as another setback for the privacy of his coin and protocol, especially given Kraken's decision to suspend his Monero support for customers in Ireland and Belgium in April. .
The recent arrest of the founder of Bitcoin mixer Samurai Wallet and Tornado Cash developer Roman Storm on charges related to money laundering has heightened concerns within the crypto community.
U.S. prosecutors have adopted a broader interpretation of the money transfer law, targeting developers who may not have direct control over user assets. This approach has raised concerns about a broader crackdown on cryptocurrency privacy.
In response to these developments, several crypto privacy projects have shut down or restricted access to US citizens. Meanwhile, other privacy services such as Wasabi CoinJoin and Trezor Coinjoin were shut down by their founders as regulatory pressure increased.
Monero (XMR) had a mixed reaction to the LocalMonero shutdown, seeing both buying and selling activity in the past 48 hours after the announcement. Its current value is $129.27, down slightly from today's high of $133.70, representing a 3% decline on the day at the time of writing.
