- P2P trading platform LocalMonero announced the end of its operations.
- The platform did not give a specific reason for its closure.
- US authorities have ratcheted up enforcement actions against crypto firms lately.
The crypto industry has faced intensifying enforcement actions from US authorities lately. From the arrest of the developers behind the privacy-focused Samourai Wallet to the SEC’s crackdown on centralized exchanges like Robinhood, regulators have ramped up their efforts to bring the sector in line with anti-money laundering and securities laws.
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Amid this increasing regulatory hostility, long-standing peer-to-peer (P2P) trading platform LocalMonero announced it would be winding down its operations, stoking rumors that the government’s widening crypto crackdown may have influenced the platform’s decision to close.
LocalMonero No More
In an announcement on May 7, LocalMonero cited “a combination of internal and external factors” as the reasons behind its decision to shutter operations after nearly seven years in business. The P2P platform, one of the oldest fiat onramps for the privacy coin Monero, stated that its business would begin winding down immediately.
The platform immediately halted new signups and ad postings. Existing users will be able to trade until May 14, after which new trades are prohibited. The platform will go offline completely on November 7, giving users until that date to withdraw any remaining funds. LocalMonero advised users to reclaim arbitration bond wallets before the November 7 deadline; otherwise, the remaining funds would be considered forfeited.
Despite closing its service, LocalMonero expressed confidence in Monero’s future, pointing to “the imminent launch of Haveno and other DEXs like Serai, atomic swaps, the coming addition of FCMP (Full chain member proofs,” which refers to an update that solves a vulnerability in Monero’s anonymizing protocol.
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While the LocalMonero team remained outwardly optimistic about Monero’s prospects after the closure, several prominent voices in the community voiced grave concerns over what this could mean for users’ rights.
The War on Crypto
Expressing concerns over the LocalMonero closure, freedom maximalist Seth For Privacy called the hostile regulatory landscape a “war.” He urged his followers to “band together” and educate themselves on using digital privacy tools.
Echoing those sentiments, influencer Chris Blec likened the government’s hardline approach to the crypto industry to “terrorism,” arguing that agencies are creating “an indomitable culture of fear” by overreaching beyond their interpretation of the law.
Alex Daneo, co-founder of LocalMonero, made the shutdown announcement on Reddit. While expressing gratitude to users thanking the platform, he did not use the opportunity to expand on the specific reasons for calling it a day.
On the Flipside
- The Federal Action Task Force warned that P2P platforms risk illicit financing misuse and that privacy coins are a red flag.
- A campaign of centralized exchanges delisting privacy coins is well underway.
Why This Matters
The closure of LocalMonero marks the end of an era for one of the oldest and most well-known non-custodial fiat onramps for Monero (and Bitcoin). Privacy-focused projects face great uncertainty as the line between privacy and illicit activity is enforced.
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