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Localbitcoins, the Pioneer P2P Bitcoin Exchange, Shuts Down After a Decade of Service Due to Crypto Winter

Localbitcoins, founded in 2012 BitcoinExchange based in Helsinki, Finland, closes operations after over a decade of service. The company’s operators attribute the closure to the “ongoing crypto winter” that has resulted in them being unable to offer their bitcoin trading services.

Localbitcoins challenges and its eventual demise in the crypto market

The first peer-to-peer (P2P) bitcoin exchange, Localbitcoins, is ceasing operations after over ten years in business. The exchange announced the news on its website, stating that new registrations will be suspended from February 9, 2023 and trading will be suspended seven days later on February 16. After the trading suspension, only Localbitcoins users will be able to withdraw their bitcoins and have 12 months to do so.

“Localbitcoins was originally founded to take Bitcoin everywhere and advance global financial inclusion,” the company said on Thursday. “We have been fulfilling this mission for over 10 years and are proud of what we have accomplished together with all of you, our loyal community.” The bitcoin exchange added:

We are therefore sad to announce that despite our efforts to overcome the challenges during the persistently very cold crypto winter, we have regrettably come to the conclusion that Localbitcoins is no longer able to offer its bitcoin trading service.

In the early years, Localbitcoins was the preferred exchange for peer-to-peer trades around the world. The platform saw strong volume in its early years, but centralized crypto exchanges eventually surpassed it, leading to Localbitcoins gaining prominence in regions without centralized trading options.

Localbitcoins, the Pioneer P2P Bitcoin Exchange, Shuts Down After a Decade of Service Due to Crypto Winter, Crypto Trading News
Global trading volume of Localbitcoins from 2013 to 2023.

By 2019, peer-to-peer exchanges faced further challenges when they had to comply with Know-Your-Customer (KYC) regulations. Additionally, Localbitcoins ended face-to-face trading this year, making the platform less attractive to peer-to-peer traders.

In 2021, during the crypto bull market and the resurgence in digital currency prices, Localbitcoins announced the launch of an Android mobile app. Despite this, Localbitcoins never reached the volume of 2017 again. Even during the 2021 bull market, the platform’s volume continued to decline. Statistics show that Localbitcoins volume is currently as low as it was during the 2015 bear market. The first week of February 2023 saw a slight increase with 6.56 million BTC traded over a seven-day period.

What do you think is the future of sharing peer to peercryptocurrencies after Localbitcoins shutdown? Do share your thoughts in the comment section below.

Localbitcoins, the Pioneer P2P Bitcoin Exchange, Shuts Down After a Decade of Service Due to Crypto Winter, Crypto Trading News

Jamie Redman

Jamie Redman is the news director at Bitcoin.com News and a Florida-based financial technology journalist. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about today’s emerging disruptive protocols.




photo credit: Shutterstock, Pixabay, Wiki Commons, Editorial Copyright: T. Schneider / Shutterstock.com

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Source: Crypto News Deutsch

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