The peer-to-peer trading platform for privacy coin Monero (XMR) has ceased operations immediately, marking another closure in the recent wave of crackdowns on crypto privacy.
On May 7, LocalMonero announced the immediate suspension of new signups and advertisement postings for Monero trades. By May 14, all trading activities involving Monero will be disabled. The platform cited a combination of internal and external factors for its closure but pointed to the broader hostility towards privacy-centric products and services as a significant factor.
LocalMonero plans to take down its website on November 7 and advises users to withdraw any funds from their wallets before that date to avoid potential loss.
Established in 2017 as the XMR equivalent of LocalBitcoins, LocalMonero recognizes the maturity of the Monero ecosystem over the years. The impending launch of decentralized exchanges like Haveno and Serai, along with the Full-Chain Membership Proofs (FCMPs) privacy update, instills confidence in Monero’s future, regardless of LocalMonero’s closure.
This closure is perceived as another setback for privacy coins and protocols, following actions like Kraken’s termination of Monero support for customers in Ireland and Belgium and legal measures against Tornado Cash.
Privacy advocate “Seth For Privacy” lamented LocalMonero’s closure, highlighting its significance in the no-KYC Monero ecosystem and the absence of a direct fiat-to-XMR alternative. The move is seen as indicative of an ongoing “anti-privacy crypto war.”
Global finance regulators have targeted privacy coins and services, evident from the arrests of Samourai Wallet co-founders for money laundering charges and the closure of other privacy services like Wasabi CoinJoin and Trezor Coinjoin.
However, opinions vary regarding intelligence agencies’ stance on privacy protocols. Some, like Ethereum privacy protocol Railgun contributor Alan Scott Jr., suggest that agencies may prioritize catching bad actors over inhibiting privacy protocols’ development.
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