By
Bhushan Akolkar
May 17th, 2024
The pressure on privacy-centric crypto projects including LocalMonero and Tornado Cash has recently escalated amid notable Web3 hacks.
LocalMonero, a P2P Monero (XMR) trading platform, has announced the closure of its operations after seven years in the market. According to the announcement, LocalMonero made the hard decision of winding down its operations due to both internal and external factors. As a result, LocalMonero is henceforth not accepting new user registration and trade ad pasting has already been disabled.
The LocalMonero platform was largely similar to the previously closed LocalBitcoin. The LocalMonero team has informed users that they have until May 14 to wind down on all new trades. Additionally, the LocalMonero team will be available throughout the process to mediate any trade dispute and facilitate seamless winding down of operations.
Meanwhile, LocalMonero users have until November 7, 2024, to withdraw their funds from the platform, since the website will be taken down. The AgoraDesk team announced that LocalMonero users can opt to delete their account before the winding process is completed in the coming months,
“The winding-down process begins today and finishes 6 months from now. Our support staff will be available for help throughout this period,” LocalMonero noted.
What Next After LocalMonero
The closure of LocalMonero has been a surprise to many users but nothing unexpected from the bigger picture. Furthermore, the United States and other global law enforcement have escalated the fight against the use of privacy-centric crypto coins like Monero (XMR) and Dash (DASH).
The LocalMonero team highlighted that the Monero network has significantly grown in the past years and will survive without its help. Notably, the Monero ecosystem anticipates the imminent launch of Haveno protocol, Serai DEX, and atomic swap, among other projects geared towards network management.
Meanwhile, the trading of Monero will significantly be facilitated by Bitcoin, which is highly liquid in fiat pairs. According to a popular pro-privacy X user, Seth For Privacy, the closure of LocalMonero is a sign of the heightened war against anti-privacy crypto.
Incredibly sad day, LocalMonero has been a cornerstone of the no-KYC Monero ecosystem and has no direct fiat -> XMR alternative today.
This news makes it all the more pressing to have good, decentralized BTC <> XMR ramps like @SeraiDEX and @HavenoDEX ASAP.
So grateful for all… https://t.co/cos2NCsSl6
— Seth For Privacy | #FreeSamourai (@sethforprivacy) May 7, 2024
XMR Market Picture
The fight against privacy-centric crypto projects, by different global governments, has seen the market share for Monero gradually decline in the recent past. According to the latest market data, XMR has a total valuation of about $2.3 billion and a 24-hour average trading volume of around $47 million.
Earlier last month, cryptocurrency exchange Kraken announced the end of Monero trading in Ireland and Belgium. Kraken announced that deposits for Monero will be halted by May 10, 2024, and withdrawals will end by June 10.
The shaping of the crypto market by the United States and other global jurisdictions has been condemned by some crypto leaders including Coinbase Global Inc (NASDAQ: COIN) CEO Brian Armstrong. Nonetheless, the cryptocurrency industry has been forced to yield some privacy to ensure future growth prospects.