One of the earliest peer-to-peer platforms for Bitcoin trading is shutting down, a consequence of the protracted crypto downturn.
LocalBitcoins cited “a cold and ongoing crypto winter” for its decision in a tweet on Thursday. Its mission is “Bring Bitcoin The Company That Says Everywhere” and promotes financial inclusion fell victim to falling volume and market share.
Launched in 2012 in Helsinki, LocalBitcoins was one of the earliest and most popular P2P platforms for trading the largest tokens, but it gradually lost ground to other crypto exchanges. Weekly volume peaked at nearly $130 million during the 2017 bull market and has since dropped to around $5 to $6 million, data from CoinDance shows.
LocalBitcoins matches buyers and sellers and holds tokens in escrow until both parties confirm the transaction. The platform allows for direct Bitcoin cash transactions in multiple currencies, making it popular in countries with volatile fiat currencies — as well as among participants Who want to hide their tracks. It tightened its user verification policy in 2019 after Finland introduced new crypto regulations.
LocalBitcoins Named One of Top Three Partners of Cryptocurrency Exchange Bitzlato, Founder Has Been Arrested in Case WE in January and was charged with laundering money from illegal drug and gambling deals worth more than $700 million.
Trading on LocalBitcoin will be halted from February 16, after which its wallet can only be used for withdrawals, according to a post on its website. Customers have 12 months from February 17 to withdraw Bitcoins from their exchange wallets.
