On May 7, the peer-to-peer trading platform for the privacy coin Monero (XMR), known as LocalMonero, abruptly announced its shutdown. The company has blocked all new signups and ad posts for Monero trades, effective immediately. Furthermore, the trading of the privacy-focused cryptocurrency asset will be disabled on the platform on May 14.
The reasons behind this sudden shutdown were not disclosed by the company, but it mentioned that a combination of internal and external factors were to blame. In addition, the website will be completely shut down on November 7. Users are advised to withdraw their funds from their wallets before this date to avoid any complications.
LocalMonero, which started operating in 2017 as an alternative to LocalBitcoins specifically for Monero, recognized the substantial growth of the Monero ecosystem. The team believes that despite their platform shutting down, decentralized exchanges like Haveno and Serai are emerging, and the recent release of the privacy upgrade called Full-Chain Membership Proofs (FCMPs) further solidifies their belief.
This development is seen by some as another setback for privacy-focused cryptocurrencies and protocols, following Kraken’s decision in April to stop supporting Monero for its Irish and Belgian clients, as well as the recent legal action taken against Tornado Cash.
Although LocalMonero did not provide a specific reason for its shutdown, speculations can be made. Financial authorities worldwide have recently been cracking down on privacy coins and services. In April, the co-founders of the crypto mixer Samourai Wallet were detained on charges of money laundering. As the assault on privacy becomes more severe, other privacy service providers like Trezor and Wasabi have also recently shut down their operations.
In other cryptocurrency news, OpenSea, a popular platform for trading Ethereum-based non-fungible tokens (NFTs), has experienced a significant decline in trading volume. The reasons behind this decline are currently being analyzed and discussed within the crypto community.
Overall, these recent developments highlight the challenges faced by privacy-focused cryptocurrencies and the evolving regulatory landscape surrounding them.