Monero exchange LocalMonero ceases operations, another blow to privacy projects

The privacy-focused cryptocurrency Monero, XMR, and its related P2P trading platform LocalMonero announced today the closure of their platform operations. The community speculates that this decision may have been due to regulatory pressures, as there have been numerous crackdowns by U.S. regulatory authorities on privacy projects recently.

LocalMonero Ceases Operations

LocalMonero Announcement

The P2P exchange platform LocalMonero, dedicated to Monero-related transactions, has announced the cessation of its services today after seven years of operation. The team cited a combination of internal and external factors as the reason behind this difficult decision to shut down the platform.

The LocalMonero team mentioned that the Monero ecosystem has matured significantly over the years, with the introduction of other decentralized exchanges such as Haveno and Serai, as well as the upcoming addition of FCMP to enhance network anonymity. They expressed optimism for the future of the Monero ecosystem, regardless of the absence of the LocalMonero platform.

The team advised all users to withdraw their funds before November 7th, as the website will be shut down after that date, and any remaining funds may be considered abandoned and inaccessible.

LocalMonero Possibly Succumbs to Regulatory Pressure

Recent actions in the United States targeting privacy-focused projects have affected LocalMonero as well.

Some in the community speculate that LocalMonero's closure may have been a result of regulatory pressure. @sethforprivacy noted that in the past two weeks alone, regulatory bodies have taken action against privacy projects, including:

• The founders of privacy wallet Samourai Wallet being accused of money laundering and arrested in the U.S.
• Privacy wallet Wasabi Wallet announcing a ban on U.S. users.
• Privacy wallet Phoenix Wallet being removed from the U.S. app store and advising users to withdraw their funds.
• Privacy trading platform Tornado.cash facing multiple charges from the U.S. Department of Justice.
• The FBI issuing warnings against the use of non-KYC tools.

Now, the largest Monero exchange platform without KYC, LocalMonero, has succumbed to regulatory pressures, as speculated.

Regulatory crackdown on privacy services continues! Samourai Wallet founders charged with money laundering by U.S. DOJ