Crypto Winter’s Latest Victim: LocalBitcoins Shutting Down After Ten Years

PATNA (CoinChapter.com) — The crypto winter claimed another business. Peer-to-peer Bitcoin (BTC) exchange shared an announcement stating that the LocalBitcoins platform will be shutting down after more than a decade in the business.

The Helsinki-based P2P crypto exchange stated that it will discontinue services on Feb 9. The LocalBitcoins shutting down news came as a surprise since the firm had been releasing new features and publishing newsletters as recently as Feb 1.

Moreover, the firm had recently renewed its website to make “LocalBitcoins even more user-friendly.”

In its announcement, LocalBitcoins blamed its shutting down on the “very cold” crypto winter, that devastated the crypto market during the second half of 2022. The market downtrend saw several prominent crypto firms go bankrupt.

Furthermore, LocalBitcoins highlighted that since the beginning, its goal was to “Bring Bitcoin Everywhere” and drive global financial inclusion. The firm stated that it had honored its mission over the past decade, and was “proud of what we have achieved together with all of you, our loyal community.“

Regardless of our efforts to overcome challenges during the ongoing very cold crypto-winter, we have regretfully concluded that LocalBitcoins can no longer provide its Bitcoin trading service.

LocalBitcoins said in its announcement

LocalBitcoins Shutting Down Guidelines For Users

Meanwhile, the firm encouraged customers to withdraw Bitcoins from their LocalBitcoins wallets. Per the timeline that LocalBitcoins shared, the P2P exchange would suspend new sign-ups on Feb 9.

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The exchange would then stop trading on the platform and the use of the LocalBitcoins wallet one week later on Feb 16. However, users would be allowed to withdraw their Bitcoins from their wallets for the next 12 months beginning Feb 17, 2023.

LocalBitcoins closing down operations came when the crypto market was on the path to recovery. Hence, the impact of the news was greater. The firm’s alleged association with the Russia-linked crypto exchange Bitzlato might have played a part in its downfall.

Trade volumes on LocalBitcoins had been declining since Oct 2015 and dropped drastically around May 2017, from which it never really recovered.