LocalMonero Closure Signals Major Setback for Digital Privacy Advocates

<div data-submodule-name="composer-content"><div><p>Come May 14, all trading activities on LocalMonero have ceased, and within six months, the entire website will be shut down as per a statement by AgoraDesk, its parent company, which is also closing down.</p></div><div><p>“After nearly seven years of service, we reached the tough decision to close our platform due to a mix of internal and external factors.</p></div><div><p>“We are immensely grateful for all the support and love you've given us throughout the years. We couldn't have achieved this without you. We love you all,” the statement concluded.</p></div><div><p><i><b>This is an excerpt from The Node newsletter, a daily digest of crucial crypto news from various sources. You can subscribe to get the full </b></i><i><b>newsletter here</b></i><i><b>.</b></i></p></div><div><p>LocalMonero, a peer-to-peer exchange designed to trade the privacy coin Monero (XMR), has been operational for a significant portion of Monero's lifespan.</p></div><div><p>Though AgoraDesk didn't specify the precise reason for the shutdown, the trend among P2P crypto trading platforms indicates why. Recently, prominent platforms like LocalBitcoins and Paxful have closed down, primarily due to regulation-related issues. For instance:</p></div><div><p>“Regulatory challenges continue to grow for the industry, especially in the peer-to-peer market, and even more so in the U.S. While addressing these complications, we opted for the safest course and recommend you explore self-custody and trade elsewhere,” stated Ray Youssef, former CEO of Paxful, when that platform ceased operations.</p></div><div><p>LocalMonero faced considerable pressure from regulatory authorities targeting privacy coins. Major crypto exchanges like OKX, Binance, and Coinbase have taken steps to delist privacy-preserving tokens such as Monero and Zcash (ZEC), narrowing the avenues to acquire XMR.</p></div><div><p>LocalMonero functioned similarly to Craigslist, acting as a marketplace where users could post ads to buy or sell XMR using a variety of payment methods agreed upon by the trading parties. For instance, one ad suggested a trade of cash for Monero in person at Detroit Zoo.</p></div><div><p>There was typically a slight premium on LocalMonero's token sales since users were ready to pay more for purchasing on a platform with limited identification requests (though sellers often asked for ID as a security measure). The platform also included “arbitration bonds” that held an equivalent amount of Monero in escrow to reimburse buyers if sellers failed to deliver the promised funds.</p></div><div><p><h2>Where to Purchase Monero Now?</h2></p></div><div><p>LocalMonero served as “a cornerstone of the no-KYC Monero ecosystem,” remarked semi-pseudonymous privacy advocate Seth For Privacy on X, noting that its closure leaves Monero users with limited fiat-to-crypto options. He described the situation as “an incredibly sad day.”</p></div><div><p>Users on Reddit and the LocalMonero forum discussed alternative methods to buy XMR, which, boasting a $2.5 billion market cap, is the most prominent privacy coin. Alternatives include purchasing another cryptocurrency like Bitcoin (BTC) or Litecoin (LTC), transferring it to the privacy-centric Cake Wallet, and then swapping for XMR.</p></div><div><p>The Bisq peer-to-peer network facilitates cryptocurrency-to-Monero swaps. Kraken still supports Monero purchases, but it excludes users from specific countries, such as the U.K. and Australia, and will extend this restriction to Ireland and Belgium in June. Less secure options involve buying directly from someone via messaging apps like Telegram.</p></div><div><p>LocalMonero recommended the decentralized non-custodial exchanges Haveno and Serai, which are open-source alternatives that haven't fully launched yet. Haveno operates on the Tor network using atomic swaps, while Serai will use a multisignature setup.</p></div><div><p>The adage “if there's a will, there's a way” seems to hold true for those seeking anonymous transactions in cryptocurrencies like Monero, despite increasing difficulty accessing blockchain-based privacy tech. This trend is unlikely to reverse.</p></div><div><p>However, the survival of the Monero network and the daily use of XMR for transactions continue to demonstrate the resilience and power of decentralized systems.</p></div><div><p>One Reddit user commented, “Feds really must hate Monero. Guess it’s proof to keep using it.”</p></div><div><p><i><b>Note: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its affiliates.</b></i></p></div></div>