LocalMonero, a leading peer-to-peer trading platform for XMR, is shutting down due to regulatory pressures on privacy-focused tokens.

LocalMonero, a centralized peer-to-peer marketplace for trading Monero (XMR), has announced the closure of its services due to “internal and external factors.” Users have until May 14 to conduct trades, after which new trades will be disabled. The platform has stopped new registrations, but withdrawals will be allowed until Nov. 7. LocalMonero has warned that unclaimed funds after the deadline may be forfeited.

The Hong Kong-based platform, founded in 2017, facilitated direct buying and selling of XMR without the need for a centralized intermediary. The decision to close comes amidst a global crackdown on privacy-focused cryptocurrencies like Monero and Zcash (ZEC).

Recent developments in the industry include the delisting of XMR by cryptocurrency exchanges like OKX, Binance, and Kraken due to regulatory concerns. This has led to a decrease in trading volumes for XMR, with market liquidity for privacy tokens reaching record lows as exchanges comply with local regulations.

The closure of LocalMonero underscores the challenges facing privacy-focused cryptocurrencies in the current regulatory environment. It is important for investors to stay informed about regulatory developments and make informed decisions when trading such tokens.

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