Localbitcoins, a peer-to-peer Bitcoin (BTC) exchange and one of the early crypto trading platforms that acted as a gate for people to join the sector, has announced it would discontinue operations after ten years in the company, dealing a further blow to the cryptocurrency market.
As of February 9, 2023, the exchange will no longer accept new members, and trading will cease on February 16, 2023, according to a statement posted on its website. With the exchange’s trading suspended, customers have a full year to withdraw their bitcoins.
Originally Localbitcoins was established to bring bitcoin everywhere and drive global financial inclusion. We have honored that mission for over 10 years and we are proud of what we have achieved together with all of you, our loyal community. We are therefore sad to share, that regardless of our efforts to overcome challenges during the ongoing very cold crypto-winter, we have regretfully concluded that Localbitcoins can no longer provide its bitcoin trading service.
Localbitcoins stated on it’s website
In its early years, Localbitcoins was the most popular peer-to-peer exchange throughout the world. Volume on the site was high initially, but as time went on, centralized cryptocurrency exchanges began to overtake it, making Localbitcoins the go-to in areas without access to mainstream markets.
The sudden demise of Localbitcoins follows a report by the US Financial Crimes Enforcement Network that the site was one of the top Bitcoin senders to the Russian-affiliated exchange Bitzlato. With allegations of money laundering and aiding in the evasion of sanctions against Russia, U.S. officials took significant enforcement action against Bitzlato.
This is a shocking turn of events for the once-dominant peer-to-peer Bitcoin exchange, whose CEO Sebastian Sonntag boasted in 2021 that the site was enrolling more than 135,000 new members every month, attracting 4,000 to 5,000 new participants per day.
