Prominent Monero Trading Platform LocalMonero Gradually Shuts Down Amid Ongoing Crackdown on Privacy Coins
Brook.X
Monero (XMR), known for its significant privacy features within the cryptocurrency sphere, contrasts sharply with cryptocurrencies like Bitcoin, which can be tracked through the blockchain network. XMR's transactions are private, visible only to the parties involved, making it a preferred choice for a period, especially among ransomware groups who favored it over Bitcoin for receiving ransom payments.
However, its exceptional privacy capabilities have not endeared it to U.S. financial regulatory bodies, leading to the delisting of XMR from most major cryptocurrency exchanges, including but not limited to Binance, OKEx, and Coinbase.
Privacy-focused coins like ZEC have also been delisted, severely impacting the liquidity and tradeability of these cryptocurrencies despite user ownership.
The renowned XMR trading platform, Local XMR, has announced its gradual shutdown:
- May 7, 2024: New user registration and advertisement posting will be disabled.
- May 14, 2024: The initiation of any new transactions will be prohibited.
- November 7, 2024: LocalXMR will shut down completely. Funds not withdrawn by users by this date will be considered forfeited and will no longer be retrievable.
LocalXMR, akin to the now-defunct Bitcoin trading site LocalBitcoins, is a typical peer-to-peer (P2P) XMR trading platform where users can post ads or engage in direct exchanges with others, with LocalXMR serving as the escrow agent. This platform, dedicated to facilitating unconventional types of cryptocurrency transactions, has been operated by its parent company AgoraDesk.
AgoraDesk stated:
"After nearly seven years of operation, due to a combination of internal and external factors, we have made the difficult decision to close the platform. We are profoundly grateful for the love and support we have received over the years. Without you, none of this would have been possible. We love all of you."
Despite ongoing pressures, XMR's price has remained relatively stable. It peaked at 518, with the latest price around 134, showing little fluctuation over the past two years. This stability, especially in light of the significant price increases of Bitcoin during the same period, underscores a strong community foundation supporting XMR. However, it remains uncertain how long this stability can last amidst the continuing negative news.
