LocalBitcoins, A peer-to-peer (P2P) Bitcoin Trading Platform located in Finland, Has Reported that it would stop Operations after over 10 years of Providing Services to its Users.
On February 9, LocalBitcoins made the formal Announcement that Company will end its Services, Citing the Difficult market Conditions caused by the Protracted Bitcoin Winter.
All LocalBitcoins Encouraged its clients to remove their Cryptocurrency holdings from the site and educated them to start the process of removing Bitcoin (BTC) from the wallet associated with their LocalBitcoins account. According to the notification, Customers can Withdraw their Cryptocurrency Assets from their LocalBitcoins accounts for a time of one year. The company mentioned the following observable fact: “However, of course, we encourage you to continue with Withdrawing sooner.”
According to the time span for the Closure, Starting on February 9, LocalBitcoins will Instantly stop Tolerating any new registrations. On February sixteenth, all trading will be stopped, and after that date, users will just be allowed to sign in to their wallets to withdraw monies from their Accounts.
The Unexpected closure of LocalBitcoins comes not long after the United States Financial Wrongdoings Enforcement Network named the site as one of the main Bitcoin senders to the Russia-Connected Exchange Bitzlato. The United States authorities have Initiated a Significant enforcement action against Bitzlato, accusing the company of taking part in money laundering and allegedly assisting in the evasion of sanctions Imposed on Russia.
Since October 2022, when we ceased Providing Russian user endlessly accounts of users occupant in Russia, our records show that there have been almost no transactions among LocalBitcoins and BitZlato. The data we have collected leads to this Information.
Blomberg further Emphasized that Know Your Customer and Anti-Money Laundering necessities were adhered to by LocalBitcoins in a stringent way and that the company has been regulated by the Finnish Financial Supervisory Authority starting around 2019.
Russia was once one of the main markets for LocalBitcoins. As of June 2020, the country had the highest volume of Bitcoin trades on the site. According to statistics provided by Coin Dance, the total trade volumes on LocalBitcoins have been steadily decreasing after hitting a record-breaking high in December of 2017.
Since February 2021, when they fell under 1,000 BTC for the first time, week by week Bitcoin Trade Volumes on LocalBitcoins have never recovered to their past levels. The latest week after week BTC trade volume that was Accounted for on LocalBitcoins was 283 BTC, which is identical to around $6 million. According to statistics provided by CoinGecko, enormous Cryptocurrency Exchanges, for example, Coinbase conduct day to day Transactions Totaling $282 million in Digital Currency.