closing of operations due to local regulations
LocalMonero, a prominent peer-to-peer marketplace for trading the privacy-focused cryptocurrency Monero (XMR), has announced that it will be shutting down its services. The decision to close was attributed to both internal and external factors. According to a blog post on May 7, users will still be able to conduct trades until May 14, after which new trades will be disabled. The platform has also stopped accepting new registrations, but withdrawals will remain available until November 7. LocalMonero has warned users that any unclaimed funds after the deadline may be considered abandoned or forfeited. Crypto.news reached out to LocalMonero for comment, but has not received a response at the time of writing.
Established in 2017 and based in Hong Kong, LocalMonero allows users to buy and sell XMR directly with each other, without the need for a centralized intermediary. The closure of the platform comes at a time when privacy-focused cryptocurrencies like Monero and Zcash (ZEC) are facing regulatory pressures worldwide.
In December 2023, OKX, a cryptocurrency exchange, announced the delisting of XMR and other anonymous cryptocurrencies, citing their failure to meet the exchange’s strict criteria. Subsequently, Binance, another major crypto exchange, also removed XMR from its trading pairs, resulting in a significant drop in the token’s value. Additionally, Kraken, an American crypto exchange, delisted Monero in Belgium and Ireland due to anti-money laundering regulations in Europe.
The removal of XMR from centralized platforms has already had an impact on the token’s trading volumes. According to data from Kaiko, a blockchain analytics firm, market liquidity for privacy tokens has reached record lows as crypto exchanges continue to delist these assets in order to comply with local regulations.
In a separate incident, the Monero community’s wallet funds were drained in a security breach.
