Cryptocurrency Platform LocalBitcoins Shuts Down After a Decade of Service

Helsinki-based peer-to-peer (P2P) cryptocurrency platform, LocalBitcoins, has introduced that it’s shutting down its operations after serving its clients for over 10 years. The corporate has cited the present robust market situations of the continuing cryptocurrency winter as the rationale for its termination of companies.

LocalBitcoins CEO Nikolaus Kangas spoke to Cointelegraph and acknowledged, “No matter our efforts to beat challenges and switch our commerce volumes and declining market share again to progress, now we have regretfully concluded that LocalBitcoins can not present its Bitcoin buying and selling service.”

Clients Suggested to Withdraw Funds Instantly

LocalBitcoins has inspired all of its clients to withdraw their crypto property from the platform instantly. The corporate has requested its customers to proceed with withdrawing Bitcoin from the LocalBitcoins pockets. Customers have been given a 12-month window to withdraw their cryptocurrencies, however LocalBitcoins has suggested them to take action sooner.

New registrations on the platform have been suspended since February 9, and buying and selling will probably be suspended on February 16. After that date, customers will solely be capable to log in to the pockets to withdraw their funds.

Accused of Cooperation With Bitzlato

LocalBitcoins’ abrupt closure comes quickly after america Monetary Crimes Enforcement Community (FinCEN) talked about the platform among the many greatest Bitcoin senders to the Russia-linked trade, Bitzlato. U.S. authorities not too long ago launched a serious enforcement motion in opposition to Bitzlato, accusing the agency of cash laundering and allegedly facilitating the circumvention of sanctions in opposition to Russia.

Nonetheless, Jukka Blomberg, the chief advertising and marketing officer at LocalBitcoins, denied any form of cooperation or relationship with Bitzlato in a press release to Cointelegraph. He acknowledged, “Based mostly on our information, there have virtually been no transactions between LocalBitcoins and BitZlato since October 2022, after we stopped serving Russian consumer accounts and accounts of customers residing in Russia.” Blomberg additionally emphasised that LocalBitcoins has been regulated by the Finnish Monetary Supervisory Authority since 2019 and has strictly adopted Know Your Buyer and Anti-Cash Laundering rules.

Buying and selling Volumes on the Decline

LocalBitcoins was as soon as among the many greatest markets for Bitcoin, topping the buying and selling volumes on the platform in June 2020. Nonetheless, general buying and selling volumes on LocalBitcoins have been on a downward development since reaching an all-time excessive in December 2017, in keeping with information from Coin Dance. Weekly Bitcoin buying and selling volumes on LocalBitcoins dropped under 1,000 BTC in February 2021 and have by no means recovered since. LocalBitcoins’ final recorded weekly BTC buying and selling volumes amounted to 283 BTC, or about $6 million. Compared, main exchanges like Coinbase commerce $282 million in crypto each day, in keeping with information from CoinGecko.

LocalBitcoins’ closure marks the tip of an period for the P2P cryptocurrency platform. Regardless of its efforts to beat the challenges confronted within the robust market situations, the corporate has regretfully introduced that it might probably not present its Bitcoin buying and selling service. All clients have been suggested to withdraw their funds from the platform as quickly as attainable.