LocalMonero Exchange Ceases Operations Amid Global Crackdown on Privacy Coins” LocalMonero, a prominent peer-to-peer centralized platform facilitating Monero (XMR) trading, has announced the closure of its services, attributing the decision to a blend of internal challenges and external pressures within the cryptocurrency landscape.
The platform, which has served as a hub for XMR trading since its inception in 2017, disclosed in a recent blog post that users will have until May 14 to conduct trades, with new registrations being suspended immediately. Withdrawals will remain accessible until November 7, after which unclaimed funds may be deemed forfeited.
“Following nearly seven years of operation, we find it necessary to make the tough choice to sunset our platform due to various internal and external factors,” LocalMonero stated.
As regulatory scrutiny intensifies globally, particularly targeting privacy-oriented cryptocurrencies like Monero and Zcash (ZEC), centralized exchanges have faced mounting pressure. In December 2023, OKX initiated the delisting of XMR and other anonymous coins, citing compliance concerns. This move was followed by Binance’s removal of XMR trading pairs, contributing to a notable decline in the token’s value. Moreover, Kraken’s decision to delist Monero in certain European regions further underscored the challenges faced by privacy-focused assets.
The repercussions of these delistings have reverberated across the market, with data from blockchain analytics firm Kaiko indicating a significant reduction in liquidity for privacy tokens. As exchanges continue to adhere to regulatory mandates by removing such assets from their platforms, trading volumes for privacy coins have dwindled to unprecedented lows.
Despite attempts to weather the storm, LocalMonero’s closure underscores the formidable obstacles confronting platforms facilitating the trading of privacy-oriented cryptocurrencies in today’s regulatory climate.
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