LocalMonero Exchange Shutters Due To Internal And External Factors

LocalMonero, one of the largest peer-to-peer centralized platforms for trading XMR, is sunsetting its services amid the global crackdown on privacy-focused tokens.

A centralized peer-to-peer marketplace for trading Monero (XMR), LocalMonero, is closing down its services, citing “internal and external factors” as the reason behind the move.

In a blog post on May 7, the platform said users can conduct trades until May 14, following which new trades will be disabled. Furthermore, the platform has halted new registrations, while withdrawals will remain open until Nov. 7. LocalMonero also cautioned that after the deadline, unclaimed funds “may be considered abandoned/forfeited.”

“After almost 7 years of operation, due to a combination of internal and external factors, we have made the difficult decision to close our platform.”

LocalMonero

Crypto.news reached out to LocalMonero for comment but has not heard back as of press time.

Founded in 2017, the Hong Kong-based platform allows users to buy and sell XMR directly with each other, without the need for a centralized intermediary. The closure comes amid the global crackdown targeting privacy-focused cryptocurrencies like Monero and Zcash (ZEC).

In December 2023, OKX, a cryptocurrency exchange, announced the delisting of XMR and other anonymous cryptocurrencies, citing failure to meet their “strict criteria.” Subsequently, Binance, another crypto exchange, also removed XMR from its trading pairs, resulting in a significant depreciation of the token’s value. Additionally, Kraken, an American crypto exchange, delisted Monero in Belgium and Ireland due to European anti-money laundering regulations.

The full-scale removal of XMR from centralized platforms has already impacted the token’s trading volumes. According to data from Kaiko, a blockchain analytics firm, market liquidity for privacy tokens has hit record lows as crypto exchanges continue to delist these assets from their listings in an effort to comply with local rules.