Bitcoin exchange platform localBitcoins announced today that it will close its service. The update has long been interpreted as sad news for BTC investors as the service has been running for the past ten years.
The platform cited poor market conditions in the ongoing crypto winter for its decision to shut down the service. It was stated that with the crypto winter, volumes and market share fell, which led to the decision.
LocalBitcoins Shutting Down
The platform gave customers a 12-month period to withdraw their funds from their wallets. The company said in its announcement that ongoing market conditions are not conducive to any improvement. With a customer base of 8 million, the platform is spread over 190 countries. The crypto community expresses its regret at the shutdown of one of the oldest Bitcoin market platforms.
Regardless of our efforts to overcome various challenges during the continued very cold crypto winter as our volumes and market share continue to decline, we regrettably conclude that LocalBitcoins can no longer provide a trading service.
NEWS CONTINUES BELOW
LocalBitcoins Family,
Your loyalty is unmatched.
NEWS CONTINUES BELOWWe truly cannot express how moved we all are by each memory you have shared & your kind support.
We’ll always be proud to have shared this journey with you. Things change, but remember:
History cannot be rewritten. 🧡💙
— LocalBitcoins (@LocalBitcoins) February 9, 2023
On the other hand, it is argued that LocalBitcoins has closed to get rid of operational risks in the current environment. The platform is mentioned in the latest Financial Crimes Enforcement Network (FinCEN) report, which includes Bitzlato transactions.
The FinCEN document lists LocalBitcoins as one of the top three counters of Bitzlato. In the document, the Bitcoin exchange platform is defined as a Finland-based or Finland-based Virtual Asset Service Provider (VASP).