- Monero (XMR) is witnessing an increase in discussions across social media platforms following the announcement of LocalMonero’s closure.
- This surge in attention coincides with the ongoing government efforts to regulate privacy-focused assets.
- LocalMonero, a Monero-based peer-to-peer exchange, is shutting down due to a mix of internal and external factors.
Monero (XMR) is in the spotlight following the announcement of LocalMonero’s closure, sparking discussions about the future of privacy-focused assets amidst increasing regulatory scrutiny.
LocalMonero Shuts Down
LocalMonero, a peer-to-peer (P2P) exchange based on Monero (XMR), announced its closure via a blog post, citing a mix of internal and external factors. After nearly seven years of operation, the platform is winding down its exchange operations, immediately ceasing new sign-ups and ad postings. This triggered an increase in discussions around Monero. Trading will be halted from May 14, and the website is slated to go offline on November 7, 2024. Users have been advised to withdraw funds from their arbitration bond wallets before the deadline to avoid potential forfeiture of their assets.
Monero Community Reacts
Despite the closure, the LocalMonero team expressed confidence in Monero’s future. They highlighted the ecosystem’s maturation over the years, the coming launch of Monero DEXs like Haveno and Serai, and the development of new privacy features such as Full-Chain Membership Proofs (FCMP). Privacy advocate “Seth For Privacy” lamented the closure, describing it as an “incredibly sad day.” He noted LocalMonero’s rise as a no-KYC Monero ecosystem, emphasizing the absence of a direct fiat-to-XMR alternative.
Privacy Coins Under Scrutiny
LocalMonero’s closure aligns with the increased pressure from law enforcement on crypto privacy projects. Many view this move as another setback for privacy coins and protocols, particularly in light of Kraken’s decision to cease Monero support for customers in Ireland and Belgium in April. The recent arrests of the founders of Bitcoin mixer Samourai Wallet and Tornado Cash developer Roman Storm on charges related to money laundering have fueled concerns within the crypto community. In response to these developments, several crypto privacy projects have either shut down or restricted access to U.S. citizens.
Conclusion
Monero (XMR) exhibited a mixed reaction to the closure of LocalMonero, witnessing both buying and selling activities in the past 48 hours post-announcement. Currently valued at $129.27, it shows a slight decline from today’s peak of $133.70, indicating a 3% decrease for the day as of the time of writing. The closure of LocalMonero and the increased scrutiny on privacy coins highlight the challenges faced by privacy-focused assets in the current regulatory environment.
