According to an announcement on its website, the peer-to-peer Bitcoin platform will be shut down before the end of February 2023.
LocalBitcoins has announced that the exchange will be closed for service at the end of February. The longtime Bitcoin trading service was the first peer-to-peer (P2P) transaction platform for many Bitcoiners. Launched in June 2012, the exchange is one of Bitcoin’s oldest entities, establishing itself as a major P2P player at its peak with over $100 million in weekly trading volume from peer-to-peer transactions.
“Originally, LocalBitcoins was established to bring Bitcoin everywhere and drive global financial inclusion,” the announcement read. “We have honored that mission for more than 10 years and we are proud of what we have accomplished together with all of you, our loyal community.”
He advertisement he cites “challenges during the ongoing very cold crypto winter” as reasoning for the shutdown. The exchange has informed clients that they must withdraw their funds from LocalBitcoins, as well as withdraw their bitcoins from the LocalBitcoins wallet. It notes that customers will have 12 months to complete this process, though they encourage users to do it sooner.
Notably, the shutdown came just as Bitcoin P2P merchants and individual sellers were affected. heavy scrutiny from the US regulatory authorities. While this is not mentioned in the announcement, it could be assumed that these recent actions have led to decreased volume on platforms like LocalBitcoins.
Despite these pressures, alternatives like RoboSats and Biscuit they still work for Bitcoiners looking to acquire bitcoins through P2P transactions.
