Peer-to-peer trading platform for privacy coin Monero (XMR $128) has shuttered its services effective immediately, adding to the recent wave of crypto privacy closures and arrests.
On May 7, LocalMonero announced that, effective immediately, all new signups and advertisement postings for Monero trades are disabled. On May 14, the platform will disable the trading of the privacy-focused crypto asset.
The firm cited “a combination of internal and external factors” but did not reveal the specific reasons for its closure.
It added that on Nov. 7, the website will be taken down and advised users to reclaim any funds from their wallet prior to that date, otherwise, they may be considered abandoned.
The P2P Monero trading platform, which was launched in 2017 as the XMR equivalent of LocalBitcoins, acknowledged that the Monero ecosystem has matured a lot over the years.
The team added that the imminent launch of decentralized exchanges such as Haveno and Serai, and a recently announced privacy update called Full-Chain Membership Proofs (FCMPs), gives them confidence that Monero’s future is bright, “with or without our platform.”
Screenshot of closure notice on localmonero.co.
The move has been seen by some as yet another blow to privacy coins and protocols following Kraken’s termination of support for Monero for its customers based in Ireland and Belgium in April and recent legal action against Tornado Cash.
Privacy Advocate “Seth For Privacy,” said it was an “incredibly sad day,” in a post on X on May 7. He added that LocalMonero has been “a cornerstone of the no-KYC Monero ecosystem” and there is no direct fiat to XMR alternative today.
He said that although the platform did not provide a reason, users could speculate.
Feels like we're deep in the trenches of an all-out anti-privacy crypto war right now.
Privacy coins and services have been targeted in recent months by global finance regulators. In April, the co-founders of crypto mixer Samourai Wallet were arrested on charges of money laundering.
Other privacy services such as Wasabi CoinJoin and Trezor Coinjoin were also recently shuttered by their founders as the privacy crackdown intensified.
However, it may not be as clear-cut as that. Ethereum privacy protocol Railgun contributor Alan Scott Jr. told Cointelegraph in early May that intelligence agencies may not be as anti-privacy protocols as many believe.
“Their concern is the potential problems around impeding their ability to catch bad actors,” he said at the time referring to agencies such as the FBI.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks

Bitcoin retail traders remain fearful, here’s why BTC could test all-time high
Bitcoin retail traders and small wallet holders reduce their holdings amidst fear of a steeper correction in the largest cryptocurrency by market capitalization. BTC price consolidates below the $100,000 level on Thursday, erasing less than 2% of its value on the day.

US states push for Bitcoin reserves, could buy $23B in BTC
A total of 20 US states are pushing for Bitcoin Reserves, with some proposals already moving forward. If these bills pass, they would require $23 billion in Bitcoin purchases, creating significant demand.

Ripple's XRP eyes a recovery as investors switch toward accumulation
XRP investors have been accumulating following an uptrend in the Mean Coin Age metric. However, the XRP derivatives market is yet to recover from a 30% open interest decline in the past week.

Ethereum could see a boost as Cboe files for 21Shares to begin staking within its ETH ETF
Ethereum (ETH) could be set for increased demand in the coming months following Cboe BZX 19b-4 filing with the Securities & Exchange Commission (SEC) to enable staking for the 21Shares Core Ethereum exchange-traded fund (ETF).

Bitcoin: BTC shows weakness, bears aiming for $90,000 mark
Bitcoin price hovers around $97,000 on Friday after losing nearly 5% in the last three days. CryptoQuant weekly report shows that activity on the Bitcoin network has declined to its lowest level in a year.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.