LocalMonero Initiates Process to Wind Down Operations after Seven Years in the Market

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As a long-term crypto investor with a focus on privacy coins like Monero (XMR), I have witnessed the gradual erosion of the privacy-centric crypto market due to increasing regulatory pressure from global authorities. The closure of LocalMonero, a prominent P2P XMR trading platform, is a sad reminder of this trend and a significant setback for the XMR community.

After seven years of functioning as a peer-to-peer Monero (XMR) trading platform, LocalMonero has made the tough decision to shut down its operations. Factors both inside and outside the company led to this choice. Consequently, LocalMonero no longer allows new user registrations and trade announcements have been deactivated.

As an analyst, I’ve noticed that the LocalMonero platform shares many similarities with the recently shuttered LocalBitcoin. The LocalMonero team has communicated to users that they must conclude all new transactions by May 14. During this process, the team will be on hand to help resolve any trade disputes and ensure a smooth transition as operations come to a close.

From now until November 7, 2024, LocalMonero users have the opportunity to withdraw their funds from the platform as the website will soon be shut down. The AgoraDesk team has given users the option to delete their accounts prior to the winding down process, which is expected to continue in the upcoming months.

Beginning today, the wind-down procedure will unfold over the next six months. Rest assured, our dedicated support team will be on hand to assist you during this entire phase. (LocalMonero’s announcement)

What Next After LocalMonero

Many people were taken by surprise when LocalMonero shut down, but in retrospect, it wasn’t an unprecedented development given the intensifying crackdown on privacy coins such as Monero (XMR) and Dash (DASH) by global law enforcement including the United States.

As a seasoned crypto investor, I’ve noticed that the Monero network has experienced remarkable growth over the past few years, to the point where it can thrive independently from the LocalMonero team. Excitingly, there are several upcoming projects in the Monero ecosystem that I’m looking forward to:

As an analyst, I’d interpret this situation as follows: The trading of Monero will become more convenient due to its close relationship with Bitcoin, which has high liquidity in fiat markets. A well-known advocate for privacy in cryptocurrencies, Seth For Privacy, has expressed his view that the shutdown of LocalMonero is an indication of intensifying efforts against privacy coins.

As an analyst, I’m deeply saddened to report that LocalMonero, a significant player in the Monero community that offered no-KYC (know your customer) services, no longer provides a straightforward fiat-to-Monero exchange solution. Presently, there isn’t an equivalent service available within the Monero ecosystem.
It’s even more important now to quickly establish reliable and decentralized Bitcoin (BTC) to Monero (XMR) exchanges like SeraiDEX and HavenoDEX.
So grateful for all…
— Seth For Privacy | #FreeSamourai (@sethforprivacy) May 7, 2024

XMR Market Picture

In recent times, Monero’s market dominance among privacy-focused cryptocurrencies has been challenged by various governments worldwide. As of now, Monero holds approximately $2.3 billion in total value and records an average daily trading volume of roughly $47 million.

As a crypto investor, I’ve recently learned that Kraken made an announcement regarding Monero trading on their platform. This update affects investors in Ireland and Belgium specifically. The exchange has set a deadline for deposits to be made before May 10, 2024, after which point they will no longer be accepted. Withdrawals for Monero are scheduled to cease by June 10.

Critics like Brian Armstrong, CEO of Coinbase Global Inc (NASDAQ: COIN), have voiced their disapproval over the influence of the United States and other major regulatory bodies on the cryptocurrency market’s development. However, in order to secure future expansion opportunities, the crypto industry has been compelled to make some concessions regarding privacy concerns.

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2024-05-08 12:40