LocalMonero, one of the largest P2P centralized platforms for XMR trading, is shutting down its services due to a global crackdown on privacy-focused tokens.
LocalMonero, a centralized peer-to-peer marketplace for trading Monero (XMR), said it was shutting down its services due to “internal and external factors.”
In a May 7 blog post, the platform said users would be able to conduct transactions until May 14, after which new transactions would be disabled. Additionally, the platform has suspended new registrations and withdrawals remain open until November 7. LocalMonero also warned that funds not claimed after the deadline “may be considered abandoned/forfeited.”
“After nearly seven years of operation, internal and external factors have led us to make the difficult decision to close the platform.”
Local Monero
Crypto.news reached out to LocalMonero for comment but did not hear back as of press time.
Founded in 2017, the Hong Kong-based platform allows users to buy and sell XMR directly to each other without the need for a centralized intermediary. The closure comes amid a global crackdown targeting privacy-focused cryptocurrencies such as Monero and ZEC.
In December 2023, cryptocurrency exchange OKX announced the delisting of XMR and other anonymous cryptocurrencies for failing to meet “stringent standards.” Afterwards, another cryptocurrency exchange, Binance, also removed XMR from its trading pairs, causing a significant drop in the token’s value. Additionally, US cryptocurrency exchange Kraken delisted Monero in Belgium and Ireland due to European anti-money laundering regulations.
The wholesale removal of XMR from centralized platforms has already had an impact on the token’s trading volume. Market liquidity for privacy tokens has hit an all-time low as cryptocurrency exchanges continue to delist the asset in an effort to comply with local regulations, according to data from blockchain analytics firm Kaiko.