LocalBitcoins, a p2P Bitcoin exchange and Bitcoin ATM machine provider, declared on Thursday through a press release that it will cease its bitcoin trading services because of the ongoing bear market.
The company announced today that it will no longer be accepting new sign-ups and advised customers to withdraw their funds as soon as possible. Clients will have a minimum of 12 months to remove their funds from their wallets, the company added.
The company announced that, beginning next week, customers will only be able to access the platform to withdraw their bitcoins.
LocalBitcoins, one of the world’s most popular Bitcoin trading services, announced today that it will be discontinuing its Bitcoin trading services. The company said that despite its efforts to overcome the challenges of the ongoing crypto-winter, it has concluded that the continuation of service as a Bitcoin p2p exchange can no longer be provided.
— LocalBitcoins (@LocalBitcoins) February 9, 2023
The decade old crypto-exchange, which was founded in 2012, announced today, that it has been unable to withstand the difficulties of the crypto-winter, a period of prolonged market downturn for cryptocurrencies, and have decided to close their service. The P2P exchange saw a major decline in the trading volume and their market share, and hence decided to shut down their services.
Hey there
sadly, despite our efforts to overcome challenges faced during the crypto-winter, like our volumes & market share continuing to decline, we’ve regretfully had to come to this conclusion…
Please make sure to withdraw any funds you may have with us. Thank you!
— LocalBitcoins (@LocalBitcoins) February 9, 2023
The company is encouraging all customers to withdraw their funds and Bitcoin from their LocalBitcoins wallets as soon as possible, and provides a timeline of when the trading and wallet services will no longer be available. After February 17th, 2023, customers will only be able to log-in to withdraw their Bitcoins.
LocalBitcoins expressed its gratitude to its customers for being a part of the family over the last decade and apologized for any inconvenience this may cause. The company said it has been an honor and pleasure to serve its customers and encouraged them to withdraw their funds as soon as possible.
This is a major setback for anyone who used the platform to buy Bitcoin P2P. And many crypto users have shown their disappointment and are not ready to let the exchange go.
Here is how the Twitter reacted:
@Cryptocrooks:
You were the OG exchange.
A fundamental component of the proliferation of Bitcoin and decentralization— CRYPTOCROOKS (@cryptocrooks) February 9, 2023
Another user @Ramirezn said:
From a Venezuelan, thank you so much for your service. You have no idea how much you have support Venezuelan people allowing them trading BTC. This is a sad day for Us. Gracias por todo!!!
— Nèstor Ramìrez (@ramirezn) February 9, 2023
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Between 2014 and 2016, there were claims that some LocalBitcoins users were not complying with anti-money laundering regulations, leading to two individuals pleading guilty to related charges in 2016.
This comes after the company has experienced numerous regulatory difficulties over the years, resulting in the recent announcement.
While LocalBitcoins is now shutting their crypto trading business off, it is not clear, if they are shutting down their ATM services too. We are awaiting an update from the team.
Would you miss LocalBitcoins? Share with us under comments.